IT Security = Hansel? We think so!
With the recent onslaught of Enterprise Security investments (25 in February alone!), we decided to turn to our friends at Crunchbase to see just how hot this market really was. Let’s just say, the numbers did not disappoint. Below are the key takeaways from the study:
Rising Round Size: Average round sizes are up almost 50% since this time last year which we hope translates into companies receiving higher valuations (and not higher founder dilution…).
The Rich Get Richer: Follow on funding rounds have been increasing in both size and quantity in the past year. This bodes well for the industry because it means more firms are putting good use to earlier rounds and leveraging that success into future investment.
If You Can’t Beat Them, Buy Them: There have been 10 acquisitions this year alone so there seems to be a theme of consolidation at work (Looking at you Bit9…).
Finally, we couldn’t write an entire piece about Enterprise Security and NOT mention the darling of 2013; FireEye. After their successful IPO last fall and recent purchase of Mandiant (bonus points for it being a majority stock deal and limiting the cash impact!), they have clearly revealed their plans on how to take share in this market. Now if only they would do the same for profitability…
Pingback: Monday Morning Memo | Capital: Ventured.
Pingback: Dueling Valuations: Shape Security | Capital: Ventured.
Pingback: Round of the Week – Synack | Capital: Ventured.
Pingback: VC Spotlight of the Week – Tomasz Tunguz | Capital: Ventured.
Pingback: Round of the Week – CounterTack | Capital: Ventured.