Cybersecurity Ventures VC Report. PHOTO: Cybercrime Magazine.

VC Report: VC Funding Trends Up In The Third Quarter Of 2017

Morag McGreevey

Menlo Park, Calif. – Oct. 3, 2017

The cybersecurity market saw strong venture capital activity in the third quarter of 2017. Deal flow remained strong throughout the summer, with several promising startups receiving significant early investment.

“Cybercrime damages are predicted to reach $6 trillion annually by 2021, and security spending is expected to exceed $1 trillion cumulatively over the next 5 years” says Steve Morgan, founder and Editor-In-Chief at Cybersecurity Ventures. “Late last year we predicted that VCs would take another big bite into cyber firms during 2017. The investment activity through the first three quarters of this year confirms our speculation.”

Read on to learn about the most interesting cybersecurity VC deals that occurred in July, August and September.

September

Sep. 27. Bastille confirms $27 million in Series B funding round from Bessemer Venture Partners, Spinnaker VC, Comcast, Keel Funds, Ballentine Partners, and individual investors. The Series B brings Bastille’s funding total to date to $40 million.

Sep. 26. Kanata’s inBay Technologies landed $1 million in seed financing from Netherlands-based Ramphastos Investments and a local “super angel” represented by Ottawa’s Tongda One Partners.

Sep. 21. Cyber security firm Securonix has raised $29 million in Series A funding. The funding round was led by Volition Capital. Eight Roads Ventures also participated in the round.

Sep. 20. Evident raised $8.8 million in Series A financing. The round was led by New Enterprise Associates.

Sep. 20. Digital Shadows, a British cybersecurity firm, raised $26 million in a Series C funding round led by venture capital firm Octopus Ventures.

Sept 19. Brooklyn-based Capsule8 has closed $6 million in Series A funding, in a round led by Bessemer Venture Partners.

Sep. 19. Aqua Security, a Tel Aviv-based cybersecurity startup, raised $25 million in a Series B round of financing led by Lightspeed Venture Partners.

Sep. 19. Threat Stack, a comprehensive intrusion detection platform, announced that it raised $45 million in a Series C funding round, led by F-Prime Capital Partners.

Sep. 18. AppGuard LLC secured a more than $30 million Series B financing round, led by Japan’s JTB Corporation.

Sep. 12. Cybersecurity training course provider Cybrary closed on $3.5 million in Series A funding in a round led by Arthur Ventures.

Sep. 11. Vertex Ventures backed a $4-million seed investment in Israeli cybersecurity firm Axonius.

Sep. 7. Israeli cyber security company SIGA Data Security has raised $3.5 million from Canadian venture capital fund Awz Homeland Security.

Sep. 5. Identity Management startup ForgeRock announced an $88 million Series D investment round led by Accel with participation from KKR, Meritech Capital Partners and Foundation Capital. This brings the total to more than $140 million raised to-date.

August

Aug. 30. Cyber security start-up Qadium has raised $40 million in second-round funding led by later-stage venture capital firm Institutional Venture Partners.

Aug. 29. LookingGlass Cyber Solutions raised $26.3 million. New investors include Eastwood Capital and Triangle Peak Partners. Current investors Alsop Louie Partners, Neuberger Berman and New Spring Capital all also contributed.

Aug. 28. Anonyome Labs closed a $20.4 million Series B round. Existing investors, including Symantec CEO Greg Clark and Crosspoint Ventures founder John Mumford, and new investors including LifeLock founder Todd Davis, Ariba co-founder Ken Eldred, and Hanna Ventures all participated in the funding round.

Aug. 23. Forward Networks announced $16 million in Series B venture capital. The round, which brings the company’s total fundraising to $27 million, was led by DFJ, with participation from Andreessen Horowitz and A.Capital Ventures.

Aug. 23. Emailage has received a $10 million growth equity investment. Anthos Capital led the investment, with participation from Radian Capital, Wipro Ventures, Mucker Capital and Tallwave Capital.

Aug. 22. Cybersecurity company Druva raised $80 million in a round led by Riverwood Capital. The round also included participation from previous backers Sequoia Capital India, Nexus Venture Partners and Tenaya Capital, among others.

Aug. 22. Versive announced it has raised an additional $12.7 million in funding from investors including Vulcan Capital, Madrona Venture Group, Goldman Sachs and Formation 8.

Aug. 17. ZingBox, a leading Internet of Things security solution provider, announced that it raised $22 million in a Series B funding round led by Dell Technologies Capital and Triventures.

Aug. 16. Respond Software, a provider of automated cyber security threat protection, emerged from stealth and announced it has raised $12 million in Series A funding led by CRV and Foundation Capital.

Aug. 14. Dragos Inc. announced that it has received a $10 million Series A round of venture capital from co-lead investors Energy Impact Partners (EIP) and Allegis Capital, with additional support from DataTribe.

Aug. 9.  Socure announced that it has closed a $13.9 million Series B round of funding led by Commerce Ventures, with participation from Flint Capital, Work-Bench, Santander InnoVentures and Two Sigma Ventures, among others.

Aug. 8. MagicCube, announced completion of an $8.5 million Series A funding round. Bold Capital Partners led the round, with participation from Epic Ventures, Social Starts and Silicon Valley Bank.

Aug. 3. BlueteamGlobal announced the launch of operations, the merger into BlueteamGlobal of three cybersecurity technology businesses (BitVoyant, K2G, and K2 Cyber Defense), and new funding for growth of more than $125 million in financing from institutional and individual investors.

Aug. 1. UnifyID, the developer of an implicit authentication platform, announced that it has closed $20 million in Series A financing led by NEA, with Andreessen Horowitz, Stanford-StartX and Accomplice Ventures also participating.

Aug. 1. GuardiCore announced that the company has raised an additional $15 million as an extension to its Series B funding round. This brings the company’s total funding raised to date to $48 million. The additional investment was led by TPG Growth and Greenfield Partners.

Aug. 1. Namogoo raised $8 million in a Series A funding round led by GreatPoint Ventures. Blumberg Capital and Inimiti Capital also participated in the round, which brings total funding including seed money to about $14 million.

July

Jul. 27. Callsign closed a $35 million Series A funding round led by Accel Partners and PTB Ventures for an authentication platform to power adaptive access control or enterprises.

Jul. 25. PerimeterX, a provider of behaviour-based threat protection technology, secured $23 million in Series B funding from Canaan Partners, Vertex Ventures and Data Collective.

Jul. 21. ShoCard raised its first seed funding in the amount of $1.5 million from an investment group including: Morado Venture Partners II, L.P., AME Cloud Ventures, LLC, Enspire Capital Ltd and Digital Currency Group.

Jul. 19. ScaleFT closed a $2 million seed funding round. Fathom Capital, Spectrum 28, Fuel Capital and Graham Weston all participated in the round.

Jul. 18. UK startup Privitar raised $16 million in Series A financing round led by Partech Ventures, 24 Haymarket, CME Ventures, Illuminate Financial, IQ  Capital Partners LLP and Salesforce Ventures.

Jul. 18. Maven led a £3.5 million investment in Contego Fraud Solutions to support the continued growth of the business.

Jul. 18. StackRox, a company that provides the industry’s only adaptive threat protection for containers, received $14 million in Series A financing from Sequoia Capital.

Jul. 18. Cybersecurity startup Corelight secured a $9.2 million Series A funding round led by Accel Partners.

Jul. 17. Security analytics company Awake Security announced that it closed more than $30 million in funding from Greylock Partners and Bain Capital Ventures.

Jul. 17. Perch Security, an information security company, announced a Series A financing round led by the Fishtech Group.

Jul. 13. Deep Instinct, a company that applies artificial intelligence learning to cybersecurity, secured $32 million in Series B financing from Columbus Nova Technology Partners, NVIDIA, and Coatue Management.

Jul. 12. ZeroFOX, a social media and digital risk monitoring company, raised $40 million in Series C financing  in a round led by Redline Capital Management and Silver Lake Waterman.

Jul. 12. Flashpoint, a leader in Business Risk Intelligence, announced a $28 million Series C funding round led by Georgian Partners.

Jul. 11. Nok Nok Labs announced that it raised $8 million in Series D financing, led by Motorola Solutions Venture Capital, with DCM Ventures, DDS, Inc., DOCOMO Innovations, Korea Information Certificate Authority, Lenovo Group, and ONSET Ventures.

Jul. 11. Risk lens, a provider of cyber risk qualification solutions, announced that it has closed a $5 million Series A round of equity investment led by Osage Venture Partners with Dell Technologies Capital, Capital Group and Kick-Start.

Jul. 11. HyTrust, Inc. closed a $36 million funding round from Advance Venture Partners (AVP) with participation from existing venture capital and strategic investors.

Jul. 11. Darktrace announced a $75 million Series D funding round led by Insight Venture Partners, with existing investors Summit Partners, KKR and TenEleven Ventures also participating.

Jul. 11. Lastline, Inc. secured $28.5 million in a round of venture funding led by Thomvest Ventures. The Series C round also included investments from Osage University Partners, Redpoint Ventures, Barracuda Networks, Inc., NTT Finance Corporation, and WatchGuard Technologies, Inc.

Jul. 2. Israeli cybersecurity company Cyber Observer completed a $3 million financing round led by UK-based Talis Capital. Existing investors from Swarth Group also participated.

Cybersecurity Ventures expects to see significant VC and corporate investor deal flow in the cybersecurity space for the remainder of 2017.

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Morag McGreevey is a freelance writer covering cybersecurity, national security, VC deals, and investing.



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