Cybersecurity VC funding surges to a record $11.5 B in 2021 888011000 110888 The pandemic entirely overthrew the threat landscape as we understand it. Ransomware represented an approximated 2.9 million attacks so far in 2021, and supply-chain attacks that targeted Kaseya and SolarWindshave increased fourfold over 2020, according to the European Union’s cybersecurity company, ENISA, which just recently warned that the more standard cybersecurity protections are no longer reliable in defending against these kinds of attacks. This has actually produced an extraordinary requirement for emerging technologies, bring in both organizations and financiers to look closer at newer cybersecurity technologies. “We are seeing a perfect storm of factors coming together to create the most aggressive threat landscape in history for business and government companies around the globe,” stated Dave DeWalt, creator and handling director of NightDragon, which recently purchased multi-cloud security startup vArmour. “As a financier and consultant, I feel we have an obligation to assist these organizations much better prepare themselves to alleviate this growing threat.” According to Momentum Cyber’s latest cybersecurity market review out Wednesday, investors poured $11.5 billion in overall venture capital funding into cybersecurity startups in the very first half of 2021, up from $4.7 billion during the very same period a year earlier. More than 36 of the 430 overall deals surpassed the $100 million mark, according to Momentum, that includes the $543 million Series A raised by passwordless authentication company Transmit Securityand the $525 million round nearby cloud-based security company Lacework. “As a financier in the cyber market for over fifteen years, I can state that this market climate differs from anything we have actually seen to date,” said Bob Ackerman, founder and managing director of AllegisCyber Capital, which just recently led a $26.5 million financial investment in cybersecurity startup Panaseer. “It is motivating to finally see CEOs, boards of directors, financiers and more paying serious attention to this area and putting the resources and capital in place to money the developments that deal with the cybersecurity challenges these days and tomorrow.” Unsurprisingly, M&A volume also saw a massive increase during the very first six months of the year, with substantial offers for business in cloud security, security consulting, and threat and compliance. Overall M&A volume reached a record-breaking $39.5 billion across 163 transactions, according to Momentum, more than four-times the $9.8 billion invested in the very first half of 2020 throughout 93 deals. Nine M&A deals in 2021 up until now have actually been valued at higher than $1 billion, including Proofpoint’s $12.3 billion acquisition by Thoma Bravo, Auth0’s $6.4 billion acquisition by Okta, and McAfee’s $4 billion acquisition by TG. “Through the first half of 2021, we have witnessed unprecedented strategic activity with both M&A and financing volumes at all-time highs,” stated Eric McAlpine and Michael Tedesco, handling partners at Momentum Cyber. “We totally anticipate this pattern to continue through the rest of the year and into 2022.” Find out more on Extra Crunch: Early-stage benchmarks for young cybersecurity business Talent and capital are moving cybersecurity financiers’ focus far from Silicon Valley

by RJ Shara | Aug 25, 2021 | Fundings and Exit | 0 comments

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