Momentum Cyber has released its Cybersecurity Market Review for Q3 2017 (PDF).
Topics covered in the report include valuations, exits (M&A and IPO activity), investment, and industry observations.
According to the review, both venture capital and M&A experienced a continuous increase through Q3 2017. Total announced M&A value came to $2.5 billion across 38 transactions, and disclosed funding totalled $1.4 billion across 76 transactions.
46% of investment transactions were early stage (Seed to Series A), with a median amount raised of $4.6 million; the quarter also saw four funding deals of over $50 million, which were raised by BlueteamGlobal, ForgeRock, Druva and Darktrace.
The review also indicates that strategic interest in next-gen MSSPs is growing, and has attracted interest from several players including those with no previous presence in the security services sector.
Investing activity continues to outpace exits through either M&A or IPO, though the report notes several significant acquisitions in the space (including Gigya, Symantec’s Web Security Business, Fireglass, Skycure, eSentire, and SecureAuth).
Public markets, according to Momentum Cyber, signal a move back to growth, with low growth performance continuing to outpace high growth performance as well as NASDAQ, S&P 500 and HACK.
The report’s watch list for 2017, which features ‘selected private companies with tremendous momentum’, includes Averon, Bitglass, Callsign, Capsule8, IronScales, Evident.io, Paladion, Seclore, Secret Double Octopus, and Yubico.
The report also provides insights into the state of the cybersecurity landscape more generally, with analysis of the year’s data breaches and the cybersecurity skills shortage.