Cybersecurity Mid-Year Review | 1H 2018
Momentum Cyber is proud to release our Cybersecurity Mid-year Review for 2018. The mid-year report examines 1H’18 cybersecurity transactions and identifies trends that are impacting the dynamic and rapidly evolving cybersecurity landscape. Tapping into the firm’s industry-leading and proprietary M&A and financing transaction database, we see that 1H’18 has already experienced a record volume of strategic activity with 310 transactions deploying over $7.2B across M&A (101 transactions, $4.2B) and financing (209 transactions, $3.0B).
“A combination of global conditions has created the perfect cyber storm bearing out opportunities for investment, as is evidenced in the level of financings and M&As we’ve witnessed in the first half of this year alone,” said Momentum Cyber Chairman Dave DeWalt. “Vulnerabilities exposed by the speed of innovation, the increasing significance of internet anonymity, and geo-political tensions are just a few heavy-hitting factors driving some of the biggest waves in cyber.”
Inside you will find a series of insights across the Cybersecurity industry including:
- M&A: A record 101 M&A transactions, totaling $4.2B in transaction volume, representing an 11% increase year-over-year
- PE & VC: A record 209 financing transactions, totaling $3.0B in transaction value, with a median amount raised of $8.0M
- Initial Public Offerings: IPO activity is on track to surpass 2017 with 3 completed IPOs in 1H’18 (Zscaler, Carbon Black, Avast) quickly followed by Tenable (July), and a strong pipeline including Tanium, Darktrace, Pindrop, Illumio and Cloudflare
- Public Company Valuations: Valuations continue to trend higher for public cybersecurity companies, with median multiples increasing by 76% since the “Trough” back in June 2016
- Cryptocurrency Hacks: An alarming $2.3B has been lost to cryptocurrency hacks and breaches so far this year
- Hot Trends: Trends across cybersecurity include social media as an increasing attack vector, private equity’s continued appetite for cybersecurity, U.S. airports’ Wi-Fi network vulnerabilities, GDPR’s influence on the data privacy industry, and the cybersecurity skills shortage
- Sector Focus: Detailed perspectives across specific cybersecurity sectors including Security Orchestration & Automation (SOAR), Risk Assessment & Visibility, Threat Intelligence, Security Information & Event Management (SIEM), Data Encryption, Pen Testing & Breach Simulation, and Social Media & Digital Risk Management
Recent Momentum Cyber Announcements
- Momentum Advises ICEBRG On Its Acquisition By Gigamon
- VentureBeat: Five Cybersecurity Leaders Give Startups One Key Piece Of Advice
- 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