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…
Deal Notables: The Board/Management team is literally an “All Star” cast of the security world. It is no surprise they have been able to secure so much funding prior to their product launch with the caliber of talent they have at their disposal (has to make for a crowded cap table though…). Highlights of the team below, but read here and here to see for yourself just how stacked they are.
Sumit Agarwal – The 1st Google Mobile Product Manager and Former Deputy Assistant Secretary of Defense for US Department of Defense
Shuman Ghosemajumder – Google’s former “Click Fraud Czar”
Michael Coates – Former Chief Security Officer of Mozilla
*Editor’s note:We will be doing features on both the current state of the Enterprise Security market (hot like fire!!) and the relation of funding amounts to “Exceptional Co-Founders” in the near future so stay tuned!