monthly-review

Security, Funded - December 2021 Roll-Up

This is the sixth issue of the Pro Reports roll-up series for the Security, Funded newsletter and the final of 2021.

Mike P

• 5 min read

This is the sixth issue of the Pro Reports roll-up series for the Security, Funded newsletter and the final of 2021.

As a Pro Member, you get access to additional analysis from the free newsletter with additional insights from me.

Let's dive in.

Overall

  • 46 companies in 24 product categories raised $1.7B in December 2021 (down from $2.5B in November 2021)

By Industry

Most funding again did not favor a specific industry, but a significant amount went towards the Industrial Control Systems (ICS) vertical.

Funding by Industry
  • $1.26B for No Industry
  • $400.0M for Industrial Control Systems (ICS)
  • $30.0M for Transportation
  • An undisclosed amount for Connected and Automated Vehicles (CAVs)

By Company

  • Claroty, a platform with a range of industrial cybersecurity controls, raised a $400.0M Series E.
  • Sysdig, a container security platform, raised a $350.0M Series G.
  • Noname Security, an API security platform, raised a $135.0M Series C.
  • PlainID, a Policy-Based Access Control (PBAC) authorization platform, raised a $75.0M Series C.
  • Ermetic, a cloud security posture management (CSPM) platform, raised a $70.0M Series B.
  • IRONSCALES, an email security platform, raised a $64.0M Series C.
  • Cequence, an API security platform, raised a $60.0M Series C.
  • EFEX, a managed security services provider (MSSP), raised a $54.4M Private Equity Round.
  • Torq, a no-code automation platform for security and ops teams, raised a $50.0M Series B.
  • Dazz, a cloud security remediation company, raised a $50.0M Series A.
  • Guardio, a browser security extension that protects the endpoint, raised a $47.0M Series A.
  • GitGuardian, an automated secrets detection platform for source code, raised a $44.0M Series B.
  • CY4GATE, a managed security services provider (MSSP), raised a $40.0M Venture Round.
  • Cyberhaven, a data detection and response platform, raised a $33.0M Series B.
  • Cylus, a platform helping railway companies avoid service disruptions caused by cyber-attacks, raised a $30.0M Series B.
  • FIleCloud, a secure content collaboration platform, raised a $30.0M Series A.
  • Kasada, an API security platform, raised a $23.0M Series C.
  • Ory, an open-source cloud and user identity management platform, raised a $22.5M Series A.
  • Grip Security, a SaaS data security and access management platform, raised a $19.0M Series A.
  • Truffle Security, a platform that finds and remediates leaked software credentials, raised a $15.0M Series A.
  • VISO Trust, a SaaS-based vendor security due diligence platform, raised a $11.0M Venture Round.
  • UncommonX, a cyber threat intelligence service, raised a $9.5M Series A.
  • Zorus, a web content filtering and endpoints security platform for Managed Services Providers (MSPs), raised a $9.0M Series A.
  • Appaegis, a data access governance platform, raised a $7.7M Seed.
  • Atmosec, a threat detection platform for SaaS applications, raised a $6.0M Seed.
  • CyberQ, a professional services firm focusing on optimizing security analytics platforms via code and automation, raised a $5.0M Seed.
  • Chainguard, a software supply chain company, raised a $5.0M Seed.
  • Securicy, a continuous compliance platform helping SMBs get and stay compliant, raised a $4.1M Seed.
  • Polymer, a data governance and privacy platform for third-party SaaS applications, raised a $4.0M Seed.
  • Evo Security, a managed identity and access management platform for MSSPs, raised a $3.7M Venture Round.
  • ByteChek, a continuous compliance platform, raised a $3.0M Seed.
  • Base Operations, a physical security threat intelligence platform, raised a $3.0M Seed.
  • Tenzir, a security orchestration and automated response (SOAR) platform, raised a $2.8M Seed.
  • QueryLayer, a data and privacy management platform, raised a $2.3M Seed.
  • AgileBlue, a SOC-as-a-Service company, raised a $2.3M Preferred Round.
  • ContraForce, a no-code security automation platform, raised a $2.0M Seed.
  • Four18 Intelligence, a threat detection and response PaaS platform, raised a $1.0M Venture Round.
  • Onwardly, a continuous compliance platform, raised a $675.0K Seed.
  • DigiCert, a digital certificate provider, raised an undisclosed Private Equity Round.
  • Interos, a risk management and supply chain monitoring platform, raised an undisclosed Series C.
  • SecureThings, a cybersecurity monitoring platform for Connected and Autonomous Vehicles (CAVs), raised an undisclosed Seed.
  • Cato Networks, a Secure Access service edge (SASE) company, raised an undisclosed Venture Round.
  • SecurWeave Research, a Hardware Enforced Security solution provider, raised an undisclosed Non-equity Assistance Round.
  • ShadowDragon, a threat intelligence platform, raised an undisclosed Private Equity Round.
  • Mitiga, a cloud-based incident response platform, raised an undisclosed Series A.
  • Promon, an application security company focused on mobile apps, raised an undisclosed Venture Round.

By Category

IoT Security wins funding for the final month in 2021 after having a record-setting year in that product space.

Container Security also saw huge funding but this product category has seen some cannibalization in the last year.

Security Operations platforms are now including container, Kuebernetes, and other runtime application security as a part of a broader offering. It's not enough to just do container security anymore and there has been capability consolidations.

Top 5 Product Categories
  • $400.0M for IoT Security
  • $350.0M for Container Security
  • $218.0M for API Security
  • $103.4M for Managed Security Services Provider (MSSP)
  • $101.3M for Identity and Access Management (IAM)
  • $89.7M for Data Protection
  • $70.0M for Cloud Security Posture Management
  • $64.0M for Email Security
  • $54.8M for Security Orchestration and Automated Response (SOAR)
  • $50.0M for Cloud Security
  • $47.0M for Endpoint Security
  • $44.0M for Software Security
  • $30.0M for Transportation Security
  • $25.0M for SaaS Security
  • $11.0M for Third-Party Security
  • $9.5M for Threat Intelligence
  • $7.8M for Continuous Compliance
  • $5.0M for Supply Chain Security
  • $5.0M for Professional Services
  • $3.0M for Physical Security
  • $2.3M for Privacy
  • $2.3M for Security Operations
  • An undisclosed amount for Hardware Security
  • An undisclosed amount for Application Security

By Lead Investor

The top 5 lead investors or investor teams.

Funding by Lead Investors
  • $400.0M for Bessemer Venture Partners, Schneider Electric, SoftBank Vision Fund
  • $350.0M for Permira
  • $135.0M for Georgian, Lightspeed Venture Partners
  • $75.0M for Insight Partners
  • $70.0M for Qumra Capital

Most Acquired

The most acquired product categories this month.

Professional Services and Managed Services Provider (MSP) companies continue to be on a huge consolidation run.

As was called out in the last monthly report, services-based companies complement a broader portfolio of product companies for VCs and lead to economies of scale with recurring revenue and long contracts.

Most Acquired Product Categories

Most Potential

The companies that I'm the most excited about this month and the ones I think have the most potential to disrupt or take a big market share (in no particular order):

Feedback

Let me know what else you want to see in these reports and what other insights you're looking for.