CYBERSECURITY ALMANAC | 2019
Momentum Cyber is pleased to provide you with our second annual Cybersecurity Almanac 2019 – the most comprehensive review of all strategic transactions and our proprietary insights on the industry. The 800 page Cybersecurity Almanac chronicles the key trends which made 2018 a record-breaking year for the industry including $15.5 billion in M&A volume and $6.2 billion in VC investments and lays out Momentum’s key predictions for 2019. The report is comprised of an in-depth analysis of over 3,500 cybersecurity companies across the globe, strategic deal activity including IPOs, mergers and acquisitions, venture capital and private equity financings, and the market impact of news and events.
The cybersecurity market once again remained robust in 2018, with records set across deal activity and transaction volume in response to increasing regulations and compliance requirements along with the ongoing and prevalent risk of data breaches. We expect this impetus to continue to push the sector into new territory as the industry races to address emerging threats and continues to consolidate in the face of vendor fatigue and a worsening skills shortage.
Highlights include:
- M&A: 2018 set another M&A record in the cybersecurity space, with a total of 183 transactions for $15.5 billion in aggregate disclosed value. The year saw increased industry requirements in risk and compliance translate into more M&A activity across the Identity and Access Management category, surpassing the Managed Security Services Providers category.
- PE & VC: Private equity continued to flood the sector in funding with 44 completed deals, accounting for over 40% of M&A activity deal volume, and venture capital invested nearly $6.2 billion, a $1.1 billion increase on last year’s figure.
- IPOs & Public Company Trading Analysis: The cybersecurity IPO market also set a record with five cybersecurity companies going public – Avast, Carbon Black, Tenable, Solarwinds and Zscaler. Cybersecurity stocks consistently outperformed the S&P and other technology indices in 2018.
- Data Breaches: 2018 witnessed another year of major breaches, with over 1,000 breaches reported in the US – including Starwood, MyFitnessPal, Quora, and Facebook’s combined loss of more than 800 million users’ data.
- Trends & Predictions: Expert analysis reflects on key events and drivers impacting the space in 2018 and what’s expected in 2019, including increased focus on hybrid cloud computing infrastructure security; increased emphasis on “force multiplier” solutions such as security analytics, orchestration and automation, and partial or even complete outsourcing of security services to MSSP and MDR providers; and the continued tailwinds of privacy and compliance propelling data-centric security solutions in the market.
- Spotlight Risks: From exposed Wi-Fi networks at airports to nation-state-level attacks on supply chains, the Almanac reveals likely targets and areas with increasing vulnerabilities.
- Sector Focus: Detailed perspectives across 24 cybersecurity sectors including Cloud Infrastructure Security, Managed Detection and Response, Industrial Control Systems and Operational Technology Security, and Deception, among others.
Recent Momentum Cyber Announcements
- Momentum Advises Interset on Its Acquisition by Micro Focus
- Momentum Advises ADT And NightDragon On Their Strategic Investment In SAM Seamless Network
- Momentum Cyber & Optiv Publish White Paper ‘E’ Is For Efficiency: Five Trends To Relieve The Cybersecurity Skills Shortage
- Momentum Advises ADT On Its Acquisition Of SDI
- Momentum Cyber Releases Its Cybersecurity Mid-Year Review For 2018
- Momentum Advises ICEBRG On Its Acquisition By Gigamon
- Momentum Advises Bradford Networks On Its Acquisition By Fortinet
- Momentum Cyber Releases Inaugural Cybersecurity Almanac For 2018
- Momentum Cyber Launches As Industry’s Premier Cybersecurity Advisory Firm
- Momentum Advises Weblife On Its $60 Million Acquisition By Proofpoint
- Momentum Advises DATASHIELD On Its Acquisition By ADT
- Momentum Advises Cyphort On Its Acquisition By Juniper Networks
Momentum Cyber is the premier trusted advisor to the cybersecurity industry providing bespoke high-impact advice combined with tailored, senior-level access. The firm was founded by world-class operators and advisors and caters to the unique needs of both earlier stage Founders, CEOs, & Boards as well as the complexity of later stage & public companies throughout their lifecycle – Incubation to Exit. Headquartered in San Francisco with operations globally, the founding team has closed over 250 transactions totaling over $250 billion in value.
Recent Momentum Cyber Transactions
Francisco Partners Have Invested In Reciprocity
Role: Sell Side Sector: Risk & Compliance Size: $60,000,000 Location: San Francisco, CA Press Release
Mainsail Partners Have Invested In Apptega
Role: Sell Side Sector: Governance, Risk & Compliance Size: $37,000,000 Location: Atlanta, GA Press Release