Tuesday, February 7 2023

Almost $10 billion was spent funding cybersecurity ventures in the first half of 2021, according to a new report published by Risk Insights Media and the Cyber Policy Institute. The report covered cybersecurity venture capital funding and merger and acquisition (M&A) deals over Q1 and Q2 of 2021.

Research into cybersecurity investment illustrates several important trends. Q2 spending was almost double Q1 spending, with $3.6 billion in Q1 and $6.1 billion in Q2. In H1 2021, $2.3 billion was raised by threat intelligence and threat detection and response. Cloud security and SaaS security raised $1.84 billion, and identity and access management raised $1.6 billion.

“The data reveals an industry in a high state of growth,” said Jeremy Davis, Principal at Risk Insights Media. “New paradigms like SASE, coupled with intensifying threats, appear to be spurring investment in new cyber defense capabilities.”

The report states, “Venture funding in cybersecurity saw a great deal of volume, both in the number of transactions and the impressive $9.5 billion put into the sector in the first half of the year. Venture investors see growth and strong potential for value in firms that can solve the most pressing cybersecurity problems companies face today and in the near future.”

According to Hugh Taylor, Director of the Cyber Policy Institute, “With the increased spending in cybersecurity, we can infer that stakeholders have determined their threat intelligence abilities are more limited than they want them to be. Indeed, numerous cyberattacks have increased the need for increased cybersecurity measures.”

The report further states, “M&A activity in network security (12.7% of deals), cloud security and SaaS (11.4%), and identity management (9.6%) suggest a deliberate move by the major players to compete aggressively in the emerging SASE market.”

The report concludes that the cybersecurity industry is growing, and many early-stage companies are poised to solve many of the problems facing businesses in today’s modern digital age. Major players are buying proven firms to broaden product and service offerings. As the need for increased cybersecurity grows, so will the cybersecurity industry.

The full report on cybersecurity venture and merger activity is available here.

Previous

AgileBlue Raises $2.25M for Managed SOC-as-a-Service and XDR Platform

Next

Cyber Deals: Claroty, AT&T, Black & Decker, Evernym

Check Also

Widget

Don’t Miss

Cyber Executive Moves: Appgate, Trellix, Rubrik

Julia Bischoff

Appgate appoints a new CEO, Trellix hires loanDepot’s CISO, SANS Institute taps new CISO director. Secure access solutions provider Appgate appointed Leo Taddeo as chief executive officer and president. Taddeo stepped into the new role after serving as Appgate’s chief information security officer since February of 2022. The SANS Institute, a cybersecurity training company, appointed […]

Cyber Deals: Drata, Field Effect investments, and Veracode acquisition

Julia Bischoff

Cybersecurity venture funding and merger activity: This week’s largest deals were MDR and security automation investments, as MSP consolidation continues to attract corporate buyers. Funding Cork, Ireland-based, data encryption company Valutree acquired $12.8 million in their series A funding round, led by investors Molten Ventures and Ten Eleven Ventures. Funds will be used to expand […]

Cyber Deals: Spin Technology, CyberArk, Mesh Security

James Hu

Cybersecurity Venture Funding and Mergers: This week’s deals involved cloud security services, data privacy, and industrial cybersecurity companies. Funding Cloud cybersecurity firm Mesh Security has secured $4.5 million in venture funding. The round was led by Booster Ventures with participation from other investors. Spin Technology, a firm providing SaaS security solutions, raised $16 million in […]

Cyber Deals: Cybrary, Ping Identity, Axio Global

James Hu

Cybersecurity Venture Funding and Mergers: Key investments were made in cybersecurity training, secure enterprise browser, and risk management companies. M&A activity this week involved identity security, zero trust, and threat intelligence firms. Funding Cybrary, a cybersecurity training platform, raised $25 million in a Series C funding round. The round was led by BuildGroup and Gula […]

Cybrary Secures $25 Million in Series C Funding Round

James Hu

Cybrary, a Maryland-based cybersecurity training platform provider, raised $25 million in a Series C funding round. The round was led by BuildGroup and Gula Tech Adventures, two of its current investors. Following its $15 million Series B round announced in November 2019, this latest investment brings Cybrary’s total funding to date to $48 million. Cybrary […]

Cyber Deals: Exterro, Naoris Protocol, Cybit Sec

James Hu

Cybersecurity Venture Funding and Mergers: This week, notable funding and M&A activity involved compliance, enterprise security, and vulnerability assessment firms. Funding Exterro, a legal governance, risk, and compliance software provider, completed a strategic recapitalization valuing the firm at over $1 billion. The company, currently owned by Leeds Equity Partners, is targeting a potential 2023 initial […]