CYBERSECURITY MARKET REVIEW | Q3 2019
We are pleased to provide you with Momentum’s Cybersecurity Market Review for Q3 2019. Strategic activity reached record highs in Q3 with 146 transactions deploying over $15.5B across M&A (39 transactions, $13.0B) and financing (107 transactions, $2.5B).
Each month we provide you with an update on the dynamic Cybersecurity landscape. We highlight M&A activity, Venture Capital, Initial Public Offerings, public market valuations, sector trends and unique industry perspectives.
The foreword of this quarter’s report features insights from top notch Cybersecurity investors at Clearsky Security on key market trends that are driving innovation in the Cybersecurity ecosystem and are the foundation of their own investment thesis.
Public Market Valuations
- Current public company valuations are notably lower compared to this time last year, with Cybersecurity stocks decreasing 6.3% during Q3 2019
- The third and fourth Cybersecurity IPOs of 2019 occurred in Q3, with Cloudflare and Ping Identity making their public market debuts in September
M&A Activity
- There were 39 M&A transactions in Q3 2019, which is on par with the 39 transactions announced in Q3 2018
- By deal volume ($13.0B) Q3 2019 was the highest quarter in history, surpassing the prior record of $11.6B in Q4 2017, and was led by the acquisition of Symantec’s Enterprise Assets by Broadcom and the acquisition of Carbon Black by VMware
- The most active sectors in Q3 2019 were: Security Consulting (9), IAM (5), Endpoint Security (4), & Web Security (4)
Financing Activity
- Total Q3 2019 financing activity surpassed Q3 2018 both in terms of volume ($2.5B) and number of transactions (107), highlighted by Cybereason’s $200M Series E & OneTrust’s $200M Series A financing rounds
- 74% of Q3 2019 financing volume ($1.8B) came from later stage financings (Series B & above)
- The most active sectors in Q3 2019 were: Risk & Compliance (18), Network & Infrastructure Security (15), & Data Security (15)
Recent Announcements
- Momentum Cyber & Optiv Publish White Paper: 2019 Security Technology Spend Insights Report
- Momentum Cyber To Support NTT’s Global Cybersecurity Strategy & Growth Initiatives
- Momentum Advises Interset on Its Acquisition by Micro Focus
- Momentum Cyber’s Annual Cybersecurity Almanac Reveals Another Record Year
- 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