Momentum Cyber’s Annual Cybersecurity Almanac Reveals Another Record Year With Over $15B of M&A and Over $6B of Venture Capital Deals in 2018

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--()--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 skills shortage.”

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 Detection 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

Momentum 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.

Contacts

Kim Hughes
Blueshirt Group
415.516.6187
kim@blueshirtgroup.com
or
Katie North
Blueshirt Group
408.506.4568
Katie@blueshirtgroup.com

Release Summary

Momentum Cyber’s Annual Cybersecurity Almanac reveals another record year with over $15B of M&A and over $6B of venture capital deals in 2018.

Contacts

Kim Hughes
Blueshirt Group
415.516.6187
kim@blueshirtgroup.com
or
Katie North
Blueshirt Group
408.506.4568
Katie@blueshirtgroup.com