The 800 Page Report on Cybersecurity Trends, Strategic Activity,
and Industry Predictions Spotlights the Increasing Gap Between Exposures
and Visibilities that Will Continue To Impact Transaction Volumes in 2019
SAN FRANCISCO–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/IPOpipeline?src=hash” target=”_blank”gt;#IPOpipelinelt;/agt;–Momentum
Cyber, the premier trusted advisor to the cybersecurity industry,
today released its second annual Cybersecurity Almanac for 2019 – the
most comprehensive and accurate transaction data and insights available
on the industry. Culled from analysis of over 3,500 cybersecurity
companies across the globe and strategic deal activity including IPOs,
mergers and acquisitions (M&A), venture capital and private equity
financings, and the market impact of news and events, the 800-page
Cybersecurity Almanac chronicles the key trends which made 2018 a
record-breaking year for the industry including $15.5 billion in M&A
volume and $6.2 billion in VC investments.
“The cybersecurity market remained highly robust in 2018, with records
set across deal activity and volume in response to increasing
regulations and compliance requirements along with the ongoing and
prevalent risk of data breaches,” said Eric McAlpine, Momentum Cyber
co-founder and managing partner. “We expect this impetus to continue to
push the sector into new territory as it races to address emerging
threats and consolidates in the face of vendor fatigue and a worsening
Highlights of the Cybersecurity Almanac 2019 include:
M&A: 2018 set another M&A record in the cybersecurity
space, with a total of 183 transactions for $15.5 billion in aggregate
disclosed value. The year saw increased industry requirements in risk
and compliance translate into more M&A activity across the Identity
and Access Management category, surpassing the Managed Security
Services Providers category.
PE & VC: Private equity continued to shower the sector in
funding with 44 completed deals, accounting for over 40% of M&A
activity deal volume, and venture capital invested nearly $6.2
billion, a $1.1 billion increase on last year’s figure.
IPOs & Public Company Trading Analysis: The cybersecurity
IPO market also set a record with five cybersecurity companies going
public – Avast, Carbon Black, Tenable, Solarwinds and Zscaler.
Cybersecurity stocks consistently outperformed the S&P and other
technology indices in 2018.
Data Breaches: 2018 witnessed another year of major breaches,
with over 1,000 breaches reported in the US – including Starwood,
MyFitnessPal, Quora, and Facebook’s combined loss of more than 800
million users’ data.
Trends & Predictions: Expert analysis reflects on key
events and drivers impacting the space in 2018 and what’s expected in
2019, including increased focus on hybrid cloud computing
infrastructure security; increased emphasis on “force multiplier”
solutions such as security analytics, orchestration and automation,
and partial or even complete outsourcing of security services to MSSP
and MDR providers; and the continued tailwinds of privacy and
compliance propelling data-centric security solutions in the market.
Spotlight Risks: From exposed Wi-Fi networks at airports to
nation-state-level attacks on supply chains, the Almanac reveals
likely targets and areas with increasing vulnerabilities.
Sector Focus: Detailed perspectives across 24 cybersecurity
sectors including Cloud Infrastructure Security, Managed Detention and
Response, Industrial Control Systems and Operational Technology
Security, and Deception, among others.
“As the volume of cyber deals ticks up, executing a successful M&A
strategy takes on a greater level of importance to get the right deal
done that delivers optimal outcomes for all stakeholders,” explained
Dave DeWalt, Momentum Cyber founder and chairman. “In the dynamic cyber
landscape where emerging threats, new targets, and the technologies
required to combat those attacks are constantly evolving, successful
strategic transactions will require the right balance of strategic
alignment, acceleration, accountability and autonomy.”
About Momentum Cyber
Cyber is the premier trusted advisor to the cybersecurity industry
providing bespoke high-impact advice combined with tailored,
senior-level access. The firm was founded by world-class operators and
advisors and caters to the unique needs of both earlier stage Founders,
CEOs, & Boards as well as the complexity of later stage & public
companies throughout their lifecycle – Incubation to Exit. Headquartered
in San Francisco with operations globally, the founding team has closed
over 250 transactions totaling over $250 billion in value. Momentum
Cybersecurity Group, LLC conducts its M&A advisory services as an M&A
Broker as defined by the SEC.