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VC Report: List Of Cybersecurity Companies That Raised Venture Capital In Q2 2018

Deal flow and valuation trend up in the second quarter of this year

Morag McGreevey

Sausalito, Calif. – Jul. 2, 2018

The market for cybersecurity venture capital was strong in Q2 2018. Both deal volume and deal valuation were high. For example, in June, BitSight Technologies raised $60 million in financing, Agari announced $40 million in funding, and Claroty raised $60 million. In May, Signifyd saw $100 million in funding and IronNet raised $78 million. In April, Saviynt raised $40 million and BetterCloud secured $60 million in financing. Read on to learn about the most interesting cybersecurity VC deals last quarter.

DEAL FLOW

June

Jun. 28. Swedish cybersecurity startup Baffin Bay Networks completed a $6.4 million Series A round. The investment was led by European VC EQT Ventures.

Jun. 28. MedCrypt announced $1.9 million in new funding. The seed round was led by Eniac Ventures, with participation from Sway Ventures, Nex Cubed, Oronoco Investments and Friedman BioVentures.

Jun. 28. Jask, a San Francisco-based startup, has raised $25 million for expansion. The lead investor in the deal was Silicon Valley venture firm Kleiner Perkins, with participation from early investors including Battery Ventures and Dell Technologies Capital.

Jun. 28. BitSight Technologies raised $60 million in a Series D funding round led by Warburg Pincus. The round included investments from previous BitSight backers Menlo Ventures, GGV Capital, and Singtel Innov8.

Jun. 27. Preempt raised $17.5 million in a Series B round supported by ClearSky, Blackstone, Intel Capital and General Catalyst.

Jun. 21. IntSights Cyber Intelligence announced a Series C funding round led by Tola Capital. The round was valued at $17 million.

Jun. 22. Agari announced $40 million in financing, led by Goldman Sachs Growth Equity. Participation from existing investors includes Norwest Venture Partners, Scale Venture Partners, Battery Ventures, Greylock Partners, First Round Capital, and Alloy Ventures. Prior to this round, the company had raised $48 million.

Jun. 18. London-based cybersecurity startup Tessian announced the closing of $13 million in a Series A round, led by Balderton Capital and existing investor Accel Partners.

Jun. 17. Cynet Security Ltd. announced it completed a $13 million Series B investment round led by Shlomo Kramer, co-founder of Check Point Software Technologies Ltd., and venture capital firm Norwest Venture Partners. Existing investor Lazarus Israel Opportunities Fund LLLP also participated in the round.

Jun. 19. CrowdStrike, a Sunnyvale, Calif.-based cybersecurity firm, has raised $200 million in new funding at a valuation exceeding $3 billion by private investors.

Jun. 19. Uptycs announced a $10 million Series A funding round, led by ForgePoint Capital, a cybersecurity-focused venture firm formerly known as Trident Capital Cybersecurity, and Comcast Ventures.

Jun. 11. Claroty announced that a syndicate of investors, including Temasek and Rockwell Automation, Aster Capital (sponsored by Schneider Electric), Next47 (Siemens-backed global venture firm), Envision Ventures, and Tekfen Ventures, invested $60 million in Series B funding.

Jun. 7. After four years in stealth, ALTR announced that it has raised $15 million to build software that uses blockchain technology to provide cybersecurity.

Jun. 5. Israel SaaS startup Panorays closed an early stage financing round of $5 million, led by Aleph venture capital fund.

May

May. 30. Vulcan Cyber, a Tel Aviv-based security startup, came out of stealth and announced a $4 million seed round led by YL Ventures with participation from a number of other cybersecurity investors.

May 29. CyberSaint Security announced the closing of a $3 million growth round of financing. The proceeds will be used to expand its sales team and fuel platform innovation. The round was co-led by Audeo Capital and founding investor BlueIO.

May 29. Signifyd announced it secured $100 million in a Series D round led by Premji Invest, with participation from existing investors Bain Capital Ventures, Menlo Ventures, American Express Ventures, IA Ventures, Allegis Cyber and Resolute Ventures.

May 29. Blackpoint announced a $6 million round of funding led by Adelphi Capital and Telcom Ventures with additional participation by Maryland Venture Fund.

May 17. Ubisecure, a provider of customer identity and access management software and cloud identity services enabler, announced that it secured significant growth capital from Octopus Investments.

May 17. CUJO AI closed a Series B round of funding led by Charter Communications.

May 16. The KELA Group, an Israel-based provider of advanced cyber intelligence software and solutions, announced a $50 million equity investment from San Francisco-based Vector Capital.

May 15. TPG’s growth investment arm raised its stake in Tanium Inc. with a $175 million investment, valuing the U.S. cybersecurity startup at about $5 billion.

May 15. Auth0, a leader in Identity-as-a-Service (IDaaS), announced $55 million in Series D funding, bringing the company’s total financing to date to more than $110 million. The round was led by Sapphire Investors, and includes investment from World Innovation Lab, as well as from existing investors Bessemer Venture Partners, Trinity Ventures, Meritech Capital Partners, and K9 Ventures.

May 15. The venture capital arm of Foxconn joined a $7 million Series A round in Cambridge Blockchain, a startup that specializes in helping enterprises ensure they know who their customers are in compliance with regulatory requirements.

May 15. Dublin-based Corrata, a mobile cybersecurity startup, has raised 1.3 million euros in funding. Delta Partners led the round.

May 9. At-Bay announced a $13 million Series A funding round co-led by Keith Rabois of Khosla Ventures, Yoni Cheifetz of Lightspeed, and Shlomo Kramer. This brings the company’s total funding to $19M.

May 9. Bravatek Solutions entered into an equity purchase agreement with Triton Funds for $500,000. Triton Funds is a new fund launched by students at the University of California, San Diego.

May 8. SafeBreach announced $15 million in strategic funding led by Draper Nexus with participation from PayPal and existing investors Sequoia Capital, Deutsche Telekom Capital Partners and HPE Pathfinder.

May 8. ERP Maestro announced that it has successfully closed a $12 million round of funding that was led by Aspen Capital, with participation from AdvancedStage Capital. The new round brings ERP Maestro’s total raised to date to $20 million.

May 3. IronNet raised $78 million with Silicon Valley venture capital firms ForgePoint Capital (formerly known as Trident Capital Cybersecurity). Kleiner Perkins also participated in the round.

May 1. Regulus Cyber raised $6.3 million in seed and Series A funding from Sierra Ventures, Canaan Partners Israel, Technion and F2 Capital.

May 1. Namogoo announced it has raised $15 million in its Series B funding round led by Hanaco Venture Capital. Existing investors GreatPoint Ventures, Blumberg Capital and Inimiti Capital also participated in the round.

April

Apr. 30. Minim, an IoT platform whose technology protects connected devices and assures fast WiFi in homes, announced a $2.5M seed round of funding, led by Flybridge Capital Partners and Founder Collective.

Apr. 27. Metova, a provider of mobile, connected car, connected home and IoT solutions, has reached a recapitalization agreement with Lightview Capital, a New Jersey-based private equity firm.

Apr. 24. Israeli behavioral biometrics startup SecuredTouch secured $8 million in Series A funding from Arvato Financial Solutions. This brings the company’s total funding to $11.5 million.

Apr. 18. Polyverse has raised another $2 million from existing investors like SpringRock Ventures to fuel growth of its Linux cybersecurity technology. This brings the company’s total funding to date to $7 million.

Apr. 18. Saviynt, a provider of Identity Governance and Administration (IGA) solutions, announced that Carrick Capital Partners has committed $40 million to its Series A financing round.

Apr. 16. Private equity firm Enam Securities has picked up a 15 percent stake in Kolkata-based cybersecurity firm Vehere, for an undisclosed amount.

Apr. 13. Onapsis, an expert in business-critical application cybersecurity and compliance, announced a $31 million Series C minority funding round led by new investor LLR Partners, with participation from existing institutional investors

Apr. 12. Empow, a provider of an intent-based orchestration platform powered by AI and machine learning analytics, raised $10 million in its Series B funding. The round included new investor Ascent Venture Partners and current investors.

Apr. 11. ObserveIt, a provider of user activity recording and auditing software, announced it has raised $16 million from Bain Capital Ventures.

Apr. 10. StackRox, a company that provides security for containerized cloud-native applications, announced it has secured $25 million in Series B funding. The funding round is led by Redpoint Ventures, and includes follow-on investments from Sequoia Capital and Amplify Partners.

Apr. 10. Expel, a company that replaces what organizations spend on managed security service providers (MSSPs), secured $20 million in Series B funding led by Scale Venture Partners, a Silicon Valley-based venture capital firm.

Apr. 10. Karamba Security, a provider of end-to-end automotive cybersecurity prevention solutions, announced that it has secured $10 million of funding from Silicon Valley-based Western Technology Investment. This brings the total investment in Karamba Security to $27 million.

Apr. 9. Armis, an enterprise IoT security company, announced it raised $30 million in Series B funding. Red Dot Capital Partners, a Temasek-backed venture capital fund based in Israel focused on growth-stage tech companies, led the round with Bain Capital Ventures joining.

Apr. 9. Cryptocurrency trading compliance platform company Chainalysis has raised a $16 million Series A funding round from Benchmark Capital.

Apr. 5. BetterCloud, the leading SaaS operations management platform, announced it has closed a $60 million funding round led by Bain Capital Ventures.

Apr. 4. Israeli cloud networking firm Meta Networks raised $10 million in a seed funding round. The round was led by Israeli VC firm Vertex Ventures and VC fund BRM Group.

Apr. 3. Red Balloon Security, a leader in embedded device security, announced it has secured $21.9 million in Series A funding. Bain Capital Ventures led the round.

Apr. 3. CapMan Growth Equity made a minority investment into Arctic Security, a company focusing on cybersecurity. The acquisition of Arctic Security was CapMan Growth Equity’s first new investment following the establishment of fund in December 2017.

Cybersecurity Ventures expects to see significant VC and corporate investor deal flow in the cybersecurity space for the rest of 2018.

Stay tuned for the Q3 2018 edition of the Venture Funding Report.

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



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