VC investments in cybersecurity have reached another level
VC’s investments in cybersecurity have reached record highs in 2018. However, the financing rate seems unsustainable, according to Strategic Cyber Ventures.
It should be noted that during the past year, investors continued to invest money in the US cybersecurity market. UU., As well as in several other countries, especially the United Kingdom, China, and Israel.
Now, there are new data from Strategic Cyber Ventures where it is revealed that venture capital investments and the average size of agreements involving cybersecurity companies reached record levels during 2018.
Venture capital in 2018
Likewise, it was shown that with at least $ 5.3 billion, venture capital financing in 2018 was approximately 20% higher than the $ 4.4 billion in 2017. While it was established with 81% more than in 2016 when the market experienced a slowdown. Added to this, the total number of agreements in 2018, in 332, was slightly lower than the 345 contracts that VC firms reached with cybersecurity firms in 2017. While for their part, the average size of the agreement was $ 15.8. million in 2018 was a record.
Based on what was obtained by Strategic Cyber Ventures, much of the “right bias on the right” in the size of the deals had to do with a handful of megadeals involving transactions of more than $ 100 million. In total, there were eight transactions of this type last year, and seven companies, which accounted for almost $ 1.4 billion in venture capital funds.
One could mention the VPN provider AnchorFree, which got the biggest deal last year: a $ 295 million financing round led by WndrCo.
While on the other hand, other companies that obtained substantial funds in 2018 included Tanium, which raised $ 375 million in two separate financing rounds, giving it a valuation of $ 6.5 billion; CrowdStrike, with a Series E financing round of $ 200 million in July that valued the company at $ 3 billion; and Netskope, with a $ 168 million deal in November.
Similarly, the activity of mergers and acquisitions of cybersecurity remained strong last year.
Source: Jai Vijayan | DARKReading