📊 Cybersecurity Funding Review - December 2022
Cybersecurity Funding Review - A look back at what moved the cybersecurity market in December 2022.
It's that time again.
Each month I do a recap on the business of cybersecurity funding and M&A news by the numbers, with visuals, and with my own commentary. I tweak these reports and add or remove sections and charts month-to-month based on feedback I get from readers like you. Let me know what I should start, stop, or continue.
This is the final monthly report from 2022.
I build these reports each month from some of the data I collect each week from the Security, Funded newsletter. If you're interested in poking through a different slice of the data, check out the Cybersecurity VC Database I made. It's the only open-source dataset like it!
If you're not signed up yet, make sure you get in on the best, most reliable, and most detailed resource for cybersecurity investing and M&A news on the Internet. Oh yeah, and it's free. 👇
By the Numbers
A look at what moved the private cybersecurity market in December 2022 by the numbers.
- Approximately $890.8M was invested in 52 cybersecurity companies across 29 unique product categories in December 2022, slightly less than the $906.0M in November 2022.
- 19 companies across 7 unique product categories were acquired or had a merger event in December 2022. Professional services and Managed Security Services Providers (MSSPs) continue to be the most acquired kinds of companies.
- Series C saw the highest funding at $250.0M across 3 transactions
- ~72% of funding went to United States-based companies with ~11% going to United Kingdom-based companies
My Thoughts and Predictions
- The end of Q4 2022 had a strong rally in funding, just like in 2021, as investors and founders got deals over the finish line for the year.
- Web3 is continuing its impressive run and security startups to secure this Wild Wild West space come out of the woodwork. This will only increase as 2023 goes on. Look out for more "secure by default" Web3 applications to be launched in 2023.
- As I said last month, buyers are still cashed strapped will be for at least through Q1 2023.
- January 2023 is going to be muted in terms of funding activity for high-dollar transactions, but M&A and Seed stage deals will continue on full steam ahead.
Funding Events by Round
- 20 Seed round events equal to $98.5M
- 11 Venture round events equal to $109.5M
- 4 Series B round events equal to $151.0M
- 3 Series C round events equal to $250.0M
- 3 Series A round events equal to $57.8M
- 3 Debt Financing round events equal to $6.8M
- 2 Pre-Seed round events equal to $2.1M
- 1 Series G round events equal to $196.5M
- 1 Private Equity event equal to an undisclosed amount
Top 5 Funding Events
- Drata, a United States-based automated compliance and security platform, raised a $200.0M Series C from ICONIQ Capital and GGV Capital. (more)
- Snyk, a United States-based developer security platform for securing code, raised a $196.5M Series G from Qatar Investment Authority. (more)
- Aztec Protocol, a United Kingdom-based encrypted and privacy-focused Ethereum platform, raised a $100.0M Series B from Andreessen Horowitz. (more)
- CyberCube, a United States-based cyber insurance analytics platform, raised a $50.0M Series C from Morgan Stanley. (more)
- DataVisor, a United States-based fraud and financial crimes protection platform, raised a $40.0M Venture Round from Brighton Park Capital. (more)
Top Funded Product Categories
- $200.0M for Continuous Compliance
- $196.6M for Application Security
- $120.0M for Distributed Ledger Technology (DLT) Security
- $80.3M for Managed Security Services Provider (MSSP)
- $50.1M for Cyber Insurance
Top Funded Industries
- $679.8M was not industry specific
- $129.0M for Web3
- $50.0M for Insurance
- $32.0M for Government
Top Lead Investor Teams
- $200.0M from ICONIQ Capital, GGV Capital
- $196.5M from Qatar Investment Authority
- $100.0M from Andreessen Horowitz
- $50.0M from Morgan Stanley
- $49.4M from unnamed investors across several deals
Top Funded Countries
- $640.1M for United States 🇺🇸
- $101.7M for United Kingdom 🇬🇧
- $34.5M for Canada 🇨🇦
- $34.0M for Germany 🇩🇪
- $24.3M for Switzerland 🇨🇭
Top Acquired Product Categories
Data Collection Methodology
A few tenants I follow for collecting and creating this data:
- I only use public data sources
- I evaluate each company that makes this list to make sure they are actually solving a cybersecurity problem
- I personally assign the product category for each company (regardless of what the marketing says)
- All monetary values are in U.S. dollars and currencies are converted, if needed, at the time of collection
- All monetary values are from the time of collection
Wrapping Up
If you like a chart, statement, or prediction I made, let me know. If you want me to dig in further on something or see the data sliced in a different way, let me know.
It means a lot when you share these kinds of posts and subscribe to my newsletter!
Likewise, if you don't like something or if something doesn't make sense, let me know. I do this to contribute something new and add value to the industry so I want to make sure I'm also taking feedback.
See you again next month!
Cheers,
Mike P