Cybersecurity Market Review
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1 <br />
<strong>Cybersecurity</strong><br />
<strong>Market</strong> <strong>Review</strong><br />
Q3 2016<br />
Advisors & Dealmakers In <strong>Cybersecurity</strong><br />
Momentum Partners<br />
• Momentum Capital <strong>Market</strong>s
About<br />
Momentum<br />
Partners
Momentum Partners<br />
Advisors & Dealmakers In <strong>Cybersecurity</strong>.<br />
Why Momentum Partners?<br />
Momentum Partners is a boutique <strong>Cybersecurity</strong> focused advisory investment bank based in<br />
Silicon Valley with operations globally. We employ a high-touch advisory model specifically<br />
designed to serve Founders/CEOs and their Boards – Series A to exit – where we are relentless<br />
in our pursuit for better outcomes for our clients. As advisors and dealmakers for two decades,<br />
we have closed over 200 deals totaling $200 Billion in value.<br />
Momentum’s Senior <strong>Cybersecurity</strong> Team<br />
Michael Tedesco<br />
Executive Chairman<br />
Founder<br />
Strategic and Capital <strong>Market</strong>s<br />
Advisor to CEOs, Founders & Boards<br />
Eric McAlpine<br />
Managing Partner<br />
Founder<br />
Senior Advisor<br />
<strong>Cybersecurity</strong> Lead<br />
<strong>Cybersecurity</strong> Enterprise IT Cloud & SaaS Defense & Government<br />
Mergers & Acquisitions* Capital Raising*<br />
Corporate Development Ecosystem Development<br />
200+ Deals $200+ Billion<br />
Petros Kitsos<br />
Senior Advisor<br />
Strategic Advisor<br />
Direct Investor and Board Member<br />
Deep Defense & Aerospace Expertise<br />
Keith Skirbe<br />
Director<br />
Strategic Advisor<br />
Mergers & Acquisitions<br />
Deep <strong>Cybersecurity</strong> Expertise<br />
Timothy Lipton<br />
Partner<br />
Founder<br />
Start-Up Advisor<br />
iCFO<br />
Dino Boukouris<br />
Director<br />
Strategic Advisor<br />
Start-up Advisor<br />
VC & Private Equity<br />
CLIENT COUNTERPARTY CLIENT COUNTERPARTY CLIENT COUNTERPARTY CLIENT COUNTERPARTY CLIENT COUNTERPARTY<br />
(Rocketdyne)<br />
3
Executive<br />
Summary
Q3 2016: <strong>Market</strong> Update And Observations<br />
The Emergence of Private Equity Firms Have Significantly Increased Strategic Activity In 3Q16.<br />
Valuations<br />
§<br />
§<br />
Valuations increased across the board during Q3, driven by our High Growth <strong>Cybersecurity</strong> comps<br />
which were +21%. Our Low Growth <strong>Cybersecurity</strong> comps were +10%, relative to the NASDAQ<br />
which was +10%, the S&P 500 which was +3% and the HACK index which was +17%<br />
Valuations have rerated over the last 12 months, but were buoyed by a strong Q3. Median forward<br />
multiples are down 34% compared to down 50% at the end of Q2. Notables include Rapid7,<br />
FireEye and Fortinet whose forward multiples are down 61%, 55% and 34%, respectively<br />
Top 5 Movers in Q3<br />
91% 68%<br />
40%<br />
30% 28%<br />
Exits: M&A &<br />
IPO Activity<br />
§<br />
§<br />
§<br />
<strong>Cybersecurity</strong> M&A activity through 3Q16 reached record levels of $14.3B; total announced M&A<br />
volume in 3Q16 totaled $7.6B and 31 Deals<br />
There were several notable M&A transactions led by PE buyers: Vista Equity acquired Infoblox for<br />
$1.3B, TPG acquired McAfee for $4.2B and Thoma Bravo acquired Imprivata for $488M<br />
Carbon Black confidentially filed for its IPO with the SEC. Optiv, Tanium, Forescout, Veracode and<br />
Tenable Network Security are all eyeing an IPO exit over the next 12 – 18 months<br />
Investment<br />
Activity<br />
§<br />
§<br />
§<br />
Q3 saw an increase in large fundraising rounds – there were 5 deals of $50M+, led by StackPath’s<br />
$180M investment from Abry Partners, and 10 deals between $25M-$50M<br />
3Q16 saw funding volume total $1.3B across 80 deals, a record number of deals and the second<br />
largest funding volume since 2010; fundraising volume YTD has already exceeded 2015<br />
60% of deals were early stage (Seed – Series A) with a median amount raised of $4.5M; the<br />
remainder consisted of late stage (Series B+) with a median amount raised of $20.6M<br />
StackPath<br />
Industry<br />
Observations<br />
§ Private Equity ‘s <strong>Cybersecurity</strong>: 7 deals in the sector in 2016 representing a total of $8.0B in<br />
enterprise value have included Private Equity on one side or the other, led by TPG’s acquisition of<br />
McAfee from Intel<br />
§<br />
§<br />
Industrial / IoT security is emerging as one of the next big destinations for investment – we are<br />
tracking 16 companies that raised $110M in 2016, with 60% of funds ($70M) raised in 3Q16 alone<br />
Security teams are stretched thin and struggling with vender fatigue in many cases. SOC automation<br />
and orchestration tools are a welcomed promise if they can deliver on the hype<br />
5
<strong>Cybersecurity</strong> Dashboard<br />
$3.88 Billion<br />
Financing Volume YTD<br />
218<br />
Financing Transactions YTD<br />
$14.35 Billion<br />
M&A Volume YTD<br />
97<br />
M&A Transactions YTD<br />
Top Financing Transactions YTD<br />
Financing Activity<br />
Monthly Deal Count Pulse Financing M&A<br />
M&A Activity<br />
Top M&A Transactions YTD<br />
Date Company Amount ($M)<br />
1/13/16 187<br />
$3.8<br />
$3.9<br />
25<br />
$10.5<br />
$14.3<br />
Target Acquirer Amount ($M)<br />
4,722<br />
7/25/16 StackPath 180<br />
15<br />
4,200<br />
6/8/16 100<br />
2/3/16 96<br />
1/21/16 76<br />
1/28/16 75<br />
2015 2016 YTD<br />
Volume ($B)<br />
229<br />
218<br />
5<br />
Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16<br />
Public Comps<br />
M&A EV/Rev Multiples<br />
Max 12.9x<br />
5.9x<br />
4.5x<br />
Max 8.6x<br />
Median 7.6x<br />
2015 2016 YTD<br />
Volume ($B)<br />
142<br />
97<br />
1,463<br />
1,254<br />
600<br />
488<br />
7/5/16 64<br />
8/30/16 50<br />
2015 2016 YTD<br />
# of Deals<br />
Median 5.0x<br />
Min 0.9x Min 0.9x<br />
2015 2016<br />
(EV / 2015E) (EV / 2016E)<br />
2015 2016 YTD<br />
2015 2016 YTD<br />
# of Deals<br />
293<br />
275<br />
Specialized Threat Analysis & Protection<br />
Identity & Access Management<br />
Threat Intel / SecOps / IR<br />
Cloud Security<br />
Data Security<br />
Mobile Security<br />
Endpoint Security<br />
Fraud Prevention / Transaction Security<br />
Application Security<br />
Risk & Compliance<br />
Web Security<br />
Industrial / IOT Security<br />
Network Security<br />
Messaging Security<br />
13<br />
17<br />
11<br />
17<br />
10<br />
9<br />
18<br />
7 4<br />
2015<br />
Total: 229<br />
19<br />
40<br />
19<br />
22<br />
23<br />
Financing Activity<br />
14<br />
5<br />
21<br />
12<br />
9<br />
13<br />
13<br />
6 4<br />
24<br />
2016<br />
Total: 218<br />
10<br />
25<br />
19<br />
16<br />
27<br />
12<br />
3<br />
14<br />
21<br />
4<br />
10<br />
6<br />
2015<br />
Total: 142<br />
6<br />
3<br />
5<br />
5<br />
16<br />
17<br />
13<br />
7<br />
M&A Activity<br />
2<br />
12<br />
2<br />
5<br />
15<br />
8<br />
6<br />
2016<br />
Total: 97<br />
3 1<br />
4<br />
3<br />
6<br />
3<br />
20<br />
7<br />
MSSP
Private Equity<br />
’s <strong>Cybersecurity</strong><br />
The Highly Fragmented <strong>Cybersecurity</strong> <strong>Market</strong> Lends Itself To the PE Platform/Roll-Up Playbook.<br />
Major <strong>Cybersecurity</strong> PE ‘Platform’ Plays<br />
Recent <strong>Cybersecurity</strong> PE Activity<br />
PE Firm Platform Add-Ons Exit<br />
Acquired By<br />
Acquired By Acquired By Acquired By<br />
($2.4B / NA)<br />
($4.7B / 7.9x)<br />
($971M / 2.7x)<br />
None<br />
($1.9B / NA)<br />
$4.2B<br />
$1.3B $488M $1.5B<br />
§ Expect these companies and their sponsors to utilized M&A to complement organic growth<br />
($550M / 1.9x) Beep Science ($890M / 2.0)<br />
Late Stage / Pre-IPO Activity<br />
(NA / NA)<br />
(NA / NA)<br />
($710M / 6.0x)<br />
─<br />
Series A<br />
$180M<br />
Series D<br />
$100M<br />
Private Equity<br />
$96M<br />
Private Equity<br />
$187M<br />
(NA / NA)<br />
─<br />
(NA / NA)<br />
─<br />
Series B<br />
$250M<br />
Series G<br />
$148M<br />
Series D<br />
$110M<br />
Series G<br />
$76M<br />
($600M / NA)<br />
─<br />
§ PE/late stage and public/cross-over investors have strong appetite for break-out cybersecurity<br />
stories that could exit via an IPO in 12 – 24 months<br />
7
Summary Of Recent Strategic Activity In <strong>Cybersecurity</strong><br />
Investing Activity Continues To Outpace Exits (M&A + IPO).<br />
Selected Acquisition Activity<br />
(Date: Implied Enterprise Value / LTM Rev Multiple)<br />
Selected VC Activity<br />
(Date: $ Raised / Pre-$ Valuation / Funding Stage)<br />
Equity<br />
(Date: $ Raised)<br />
9/16: $1.3BM / 3.5x<br />
9/16: $4.2B / NA 7/16: $1.5B / 3.4x 9/16: $488M /3.7x<br />
9/16: $40M / $300M / D<br />
8/16: $50M / NA / F 7/16: $64M / NA / C<br />
4/16: IPO: $112M<br />
Dell Spinoff<br />
StackPath<br />
6/16: $293M / 10.0x+<br />
6/16: $4.7B / 7.9x 6/16: NA / NA 6/16: $600M / NA<br />
7/16: $180M / NA / A<br />
6/16: $20M / $71M / B<br />
6/16: $20M / NA / B<br />
11/15: IPO: $78M<br />
9/16: Secondary Offering: $66M<br />
2/16: $100M / NA 2/16: $45M / NA 2/16: $30M / NA 1/16: $275M / 6.9x<br />
6/16: $100M / $900M / D<br />
5/16: $41M / NA / D<br />
4/16: $15M / $52M / B<br />
9/12: Series C: $62M<br />
1/10: Series B: $21M<br />
12/08: Series A: $8M<br />
$91M<br />
1/16: $10M / NA 1/16: NA / NA 12/15: $35M / 1.9x 11/15: $78M / NA<br />
3/16: $30M / $245M / C<br />
2/16: $23M / NA / B<br />
2/16: $96M / NA / PE<br />
7/15: IPO: $103M<br />
11/15: $280M / NA 10/15: $453M / NA 10/15: $300M / 1.8x<br />
10/15: $400M / 7.5x<br />
2/16: $14M / NA / B<br />
1/16: $80M / $511M / C<br />
12/15: $27M / $43M / B<br />
12/14: Series D: $30M<br />
11/11: Series C: $50M<br />
2/10: Series B: $2M<br />
9/08: Series A: $7M<br />
$89M<br />
10/15: $116M / 10.3x<br />
9/15: $290M / NA 9/15: $425M / 2.0x 7/15: $190M / NA<br />
11/15: $20M / $60M / B<br />
10/15: $33M / NA / A<br />
10/15: $15M / $55M / B<br />
6/15: $635M / NA 4/15: $200M / 3.3x 4/15: $1.9B / NA<br />
4/15: $786M / 3.6x 8/15: $52M / $380M / E 7/15: $18M / $34M / B 6/15: $30M / $122M / C<br />
6/15: IPO: $553M<br />
5/02: Minority: $60M<br />
9/98: Venture: $4M<br />
$64M<br />
Source: Capital IQ, 451 Group, Crunchbase, TechCrunch. Momentum Partners maintains a proprietary <strong>Cybersecurity</strong> M&A deal database.<br />
8
<strong>Cybersecurity</strong> IPO Insights<br />
Large Private Equity Funds Have Set Their Sights On Underperforming IPOs In The Sector.<br />
Implied Multiple On The Day of Pricing For Each <strong>Cybersecurity</strong> Sector IPO<br />
(Multiple: EV / LTM Revenue)<br />
(7/17/16: $1.5B / 3.4x LTM Rev) (9/19/16: $1.3B / 3.5x LTM Rev) (7/13/16: $488M / 3.7x LTM Rev)<br />
20.5x<br />
Three ‘take private’ transactions so far in 2016 as Private<br />
Equity continues its love affair. <strong>Cybersecurity</strong> companies<br />
trading at a discount to the sector.<br />
13.0x<br />
13.4x<br />
3.9x<br />
4.4x 4.3x<br />
4.0x<br />
5.3x<br />
4.1x<br />
5.7x<br />
4.6x<br />
5.3x<br />
4.0x<br />
6.7x<br />
4.0x 3.3x<br />
Median: 4.5x<br />
IPO Timing 2012 2013 2014 2015 2016<br />
Stock<br />
Performance<br />
(since IPO)<br />
EV / LTM Rev<br />
(Current)<br />
─ 245% 65% 476% 279% 218% 188%* 26% 42% 69% ─ 210% 2% 10% 91% 11%<br />
─ 8.7x 3.4x 9.9x 9.9x 6.3x 6.4x 3.3x 3.5x 1.0x ─ 7.6x 4.2x 4.9x 6.3x 2.3x<br />
Total $ Raised $128M $230M $120M $82M $260M $91M $128M $304M $64M $100M $75M $86M $553M $103M $78M $112M<br />
Source: Capital IQ. Stock performance and valuation multiple as of September 30, 2016.<br />
9
Momentum’s<br />
CYBERscapes
CYBERscape: The <strong>Cybersecurity</strong> Landscape<br />
The Security Sector Is Dynamic And Vast. We Are Ceaseless & Vigilant In Our Coverage. <br />
Network Security<br />
Endpoint Security<br />
Application Security<br />
Network Firewall<br />
Network Monitoring/Forensics<br />
Endpoint Prevention<br />
WAF & Application Security<br />
Intrusion Prevention Systems<br />
Unified Threat Management<br />
Endpoint Detection & Response<br />
Vulnerability Assessment<br />
Managed Security Service Provider<br />
Messaging Security<br />
Web Security<br />
Risk & Compliance<br />
Security Operations & Incident Response<br />
Mobile Security<br />
Data Security<br />
SIEM<br />
Threat Intelligence<br />
Industrial / IoT Security<br />
Security Incident Response<br />
Identity & Access Management<br />
Cloud Security<br />
Specialized Threat Analysis & Protection<br />
Fraud Prevention / Transaction Security<br />
Source: Momentum Partners.<br />
11
CYBERscape: The Investor Landscape<br />
<strong>Cybersecurity</strong> Is A Popular Investing Ground For Institutional Investors Around The World.<br />
<strong>Cybersecurity</strong>-Focused Investors<br />
Corporate Ventures<br />
Government<br />
Canada<br />
Pacific Northwest<br />
California<br />
Northern California<br />
New England<br />
Europe<br />
United Kingdom<br />
Europe (Ex-UK)<br />
New York<br />
Mid-Atlantic<br />
Israel<br />
SECURE OCTANE<br />
Southern California<br />
APAC<br />
Mountain<br />
South<br />
Midwest<br />
12
1
Momentum’s Watch List: Q3 2016<br />
Selected Private Companies With Tremendous Momentum.<br />
Company<br />
Commentary<br />
Company<br />
Commentary<br />
Raised: Private Funded<br />
HQ: San Francisco, CA<br />
Raised: $35.0M<br />
HQ: Palo Alto, CA<br />
§ OPSWAT provides an advanced threat detection and prevention platform to protect<br />
organizations from zero-day attacks. Metadefender leverages 100+ anti-malware, data<br />
sanitization, vulnerability and other security engines to protect organizations from known<br />
and unknown threats. Use cases include threat detection & prevention, email & proxy<br />
threat prevention and endpoint forensics & posture assessment. Its solutions are deployed<br />
by 1000+ enterprises & 50+ OEM customers to more than 200M endpoints<br />
§ Leadership: Benny Czarny (CEO), Tom Mullen (SVP, Bus Dev), Patrick Tan (CFO)<br />
§ Vera is a next-gen data security company that enables businesses of all sizes to secure,<br />
track, and share any kind of data – from Office files to video, no matter where it’s stored or<br />
how it’s shared – email, Box, Dropbox or local file shares. With robust policy<br />
enforcement, strong encryption, and strict access controls, Vera’s Dynamic Data Protection<br />
lets employees collaborate freely while ensuring the highest level of security, visibility and<br />
control<br />
§ Leadership: Ajay Arora (CEO), Prakash Linga (CTO), Robin Daniels (CMO)<br />
Raised: $7.0M<br />
HQ: Sunnyvale, CA<br />
Raised: $32.5M<br />
HQ: Portland, OR<br />
§ RiskSense is a leader in proactive cyber risk management. It enables enterprises and<br />
governments to reveal cyber risk, quickly orchestrate remediation and monitor the results.<br />
This is done by unifying and contexualizing internal security intelligence, external threat<br />
data and business criticality across a growing attack surface<br />
§ Its SaaS platform shortens time to remediation, increases operational efficiency, strengthens<br />
security programs, improves cyber hygiene and minimizes cyber risks<br />
§ Leadership: Srinivas Mukkamala, Ph.D (CEO), Mark Fidel (Co-Founder/Corp Dev)<br />
§ ID Experts provides software and services to organizations for managing cyber risks and<br />
data breaches, and to consumers to protect and restore their identities from identity theft.<br />
It offers a Data Breach Response that provides digital forensics investigation, data breach<br />
notification and crisis communications, credit monitoring, identity monitoring and health<br />
monitoring services for healthcare, financial services, retail, higher education and<br />
government organizations in the U.S.<br />
§ Leadership: Bob Gregg (CEO), Rick Kam (President), Chris Kane (COO/CIO)<br />
Raised: $6.0M<br />
HQ: Austin, TX<br />
Raised: $29.6M<br />
HQ: Boston, MA<br />
§ SparkCognition is the leading Cognitive Security Analytics company developing patented<br />
products that detect behavioral anomalies in streaming data sets from both industrial<br />
sensors and IT/OT networks. SparkSecure applies automated model building, Cognitive<br />
Fingerprinting (patented) and natural language processing to automatically detect,<br />
prioritize, assess, and remediate a wide range of the most advanced cyber threats.<br />
DeepArmor is the first cognitive antivirus solution to the market<br />
§ Leadership: Amir Husain (CEO), Randy Printz (COO)<br />
§ Onapsis is the pioneer in cybersecurity and compliance solutions for cloud and onpremise<br />
ERP and business-critical applications. Onapsis Security Platform is the most<br />
widely-used SAP-certified cybersecurity solution that delivers both preventative<br />
vulnerability and compliance controls, as well as real-time detection and incident<br />
response capabilities to reduce risks affecting critical business processes and data. The<br />
platform can be integrated with SIEM, GRC and network security products<br />
§ Leadership: Mariano Nunez (CEO), Juan Pablo Perez-Etchegoyen (CTO)<br />
Raised: $10.0M<br />
HQ: Reston, VA<br />
Raised: $50.0M<br />
HQ: Tel Aviv, IL<br />
§ Verodin is defining the emerging concept of Instrumented Security. Its platform empowers<br />
customers to measure and continuously validate the cumulative effectiveness of layered<br />
security infrastructures revealing true security postures. Through automated defense<br />
analysis, its customers achieve maximum value from security spending, better leverage<br />
existing security investments and measurably improve their cyber prevention, detection<br />
and response capabilities<br />
§ Leadership: Chris Key (CEO), Ben Cianciaruso (COO)<br />
§ Cato Networks has developed a revolutionary new network security-as-a-service (NSaaS)<br />
platform that is changing the way network security is delivered, managed and evolved for<br />
the distributed, cloud-centric, and mobile-first enterprise. Its Cato Cloud platform has two<br />
parts: Cato Cloud Network which consolidates and encrypts all enterprise network<br />
elements using a network of POPs and the Cato Network Security Services, which then<br />
adds security offerings (e.g., NGFW) on top of the network<br />
§ Leadership: Shlomo Kramer (CEO), Gur Shatz (CTO)<br />
Raised: $11.6M<br />
HQ: Boston, MA<br />
§ BioCatch is a provider of behavioral biometric, authentication and malware detection<br />
solutions for mobile and web applications. Available as a cloud solution, it proactively<br />
collects 500+ parameters to generate a unique user profile. Organizations use the platform<br />
to continuously authenticate users during their online sessions, protecting against cyber<br />
threats and fraudulent activity, such as account takeover and RitB<br />
§ Leadership: Eyal Goldwerger (CEO), Avi Turgeman (CTO), Uri Rivner (Strategy)<br />
Raised: $58.0M<br />
HQ: Leesburg, VA<br />
§ PhishMe is a provider of human-focused phishing defense solutions. Its intelligence-driven<br />
platform turns employees into an active line of defense by enabling them to identify, report<br />
and mitigate spear phishing, malware and drive-by threats. Its phishing incident response<br />
platform and phishing threat intelligence enables SOC and IR teams to respond faster to<br />
real threats – decreasing the risk of data breaches<br />
§ Leadership: Rohyt Belani (CEO), Aaron Higbee (CTO), Jim Hansen (COO)<br />
Source: Momentum Partners, PitchBook Data, CrunchBase, Company Press Releases.<br />
14
Momentum’s Watch List: Q4 2015 to Q2 2016<br />
A Look Back At Those Companies With Momentum From Previous Quarters.<br />
Q2 2016<br />
Q1 2016<br />
Q4 2015<br />
Series B (04/20/16): $15M<br />
(04/26/16): In-Q-Tel Investment<br />
Series A (07/06/16): $10M<br />
Series C (08/02/16): $21M<br />
Series B (08/23/16): $12M / $3M Debt<br />
Series B (08/24/16): $15M<br />
Series B (07/12/16): $10M<br />
15
Notable<br />
Strategic<br />
Activity
1 <br />
acquires<br />
acquires<br />
acquires<br />
$1.3 Billion<br />
September 19, 2016<br />
Not Disclosed<br />
September 18, 2016<br />
$4.2 Billion<br />
September 7, 2016<br />
acquires<br />
acquires<br />
acquires<br />
$18 Million<br />
August 24, 2016<br />
$488 Million<br />
July 13, 2016<br />
$1.5 Billion<br />
July 13, 2016
Vista Equity Acquires Infoblox<br />
Marks Vista’s Second <strong>Cybersecurity</strong> Acquisition This Year Having Acquired Ping Identity In June.<br />
Transaction Overview<br />
Date:<br />
EV / LTM Rev:<br />
acquires<br />
EV / NTM Rev:<br />
EV / LTM EBITDA:<br />
EV / NTM EBITDA:<br />
9/19/2016<br />
3.5x<br />
3.4x<br />
NM<br />
18.0x<br />
Share Price ($)<br />
28<br />
26<br />
24<br />
22<br />
20<br />
18<br />
16<br />
Infoblox Overview<br />
Vista Purchase Price @ $26.50 / Share<br />
§ 33%premium to closing share price over last 60 days<br />
§ 16% premium to price of $22.83 on day prior to announcement<br />
§ 73% premium to unaffected closing price as of May 11, 2016 when media<br />
first reports of interest in acquiring Infoblox by Thoma Bravo<br />
14<br />
Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16<br />
With Infoblox Actionable Network Intelligence, you gain a platform that provides all the capabilities you need to more<br />
easily control, secure, and analyze your network<br />
CONTROL SECURE AUTOMATE <br />
Infoblox Network Automation Infoblox Network Security Infoblox Network Automation <br />
Network Security<br />
$1.25 Billion<br />
Repor&ng & <br />
Analy&cs <br />
Private Cloud/ <br />
Virtualiza&on <br />
DNS Traffic <br />
Control <br />
Threat <br />
Insight <br />
Advanced DNS <br />
Protec&on <br />
DNS <br />
Firewall <br />
NetMRI <br />
Vista Equity Partners Security Portfolio<br />
Date Company Amount ($M)<br />
September 2016<br />
1,254.3 (acquisition)<br />
June 2016<br />
600.0 (acquisition)<br />
April 2015<br />
335.0 (20% stake)<br />
December 2015<br />
Series F Lead ($35M)<br />
Rationale<br />
“Vista has an excellent track record of supporting and adding value to technology companies, and we are thrilled to bring on<br />
a partner of their caliber and strategic expertise. This transaction will provide immediate and substantial value to Infoblox<br />
stockholders, while also giving Infoblox greater flexibility to execute on our long-term strategy to drive increased DDI<br />
automation and DNS security into the enterprise market. We are excited to begin our partnership with Vista and look<br />
forward to leveraging their operational insights as we continue to deliver the industry-leading products, solutions and<br />
customer service on which our customers rely.” – Jesper Andersen, President & CEO, Infoblox<br />
Source: Company press releases and websites, 451 Research. 18
Oracle Acquires Palerra To Boost Its Security Stack<br />
Palerra Is The Latest CASB To Be Acquired In The <strong>Market</strong>.<br />
Transaction Overview<br />
Date:<br />
9/18/2016<br />
Palerra Overview<br />
The LORIC platform provides threat visibility and ensures compliance of your cloud footprint by combining threat detection, predictive<br />
analytics, security configuration management, and automated incident response into a single solution.<br />
acquires<br />
Total Raised:<br />
HQ:<br />
$25M<br />
Santa Clara, CA<br />
Threat Detection<br />
LORIC identifies existing threats to your cloud footprint<br />
by leveraging real-time threat intelligence feeds and<br />
machine learning techniques<br />
Predictive Analytics <br />
LORIC’s patent-pending modeling techniques evaluate<br />
risks across hundreds of threat vectors to provide you<br />
with a concise summary of potential threats. <br />
LORIC <br />
Automated Incident Response<br />
LORIC keeps enterprises secure by automating<br />
responses to threats with forensics, incident<br />
management, orchestration and remediation.<br />
Security Configuration Management<br />
LORIC eliminates labor intensive, error prone manual<br />
processes and manages security configurations within<br />
cloud applications.<br />
Founded:<br />
2013<br />
From branded cloud applications to cloud infrastructure, LORIC is constantly growing its list of supported cloud services<br />
Cloud Security<br />
CEO:<br />
Rohit Gupta<br />
Funding Summary: $25.0M<br />
Date Stage Amount Raised ($M) Selected Investors<br />
Apr 2016 Series B<br />
17.0<br />
Feb 2014 Series A<br />
8.0<br />
Transaction Rationale<br />
“Together, Oracle and Palerra will help accelerate cloud adoption securely by providing comprehensive identity and<br />
security cloud services. The combination of Oracle’s Identity Cloud Service and Palerra’s CASB platform plan to deliver<br />
comprehensive protection for users, applications and APIs, data, and infrastructure to secure enterprises in their adoption<br />
of Cloud and SaaS applications.”<br />
– Peter Barker, SVP Identity Management and Security Products at Oracle<br />
Source: Company press releases and websites, 451 Research. 19
TPG Acquires Intel Security, Jointly Investing In New Spin-Out<br />
TPG Makes A Big <strong>Cybersecurity</strong> Bet.<br />
acquires<br />
Enterprise Security<br />
Transaction Overview<br />
Date:<br />
Percentage<br />
Ownership:<br />
HQ:<br />
CEO:<br />
$4.2 Billion<br />
9/7/2016<br />
Santa Clara, CA<br />
Christopher Young<br />
McAfee Acquisition History Since Intel Acquisition<br />
51%<br />
Date Company Amount ($M) Date Company Amount ($M)<br />
Transactions Summary / Rationale<br />
Transaction / Spin-Out Details<br />
§ TPG to own 51% stake; Intel to own 49% stake<br />
§ TPG will invest $1.1B in the transaction (from TPG Partners VII fund), valuing McAfee’s equity at $2.2B.<br />
McAfee has net debt of $2B which Intel will finance for 3-5 months after the deal is completed<br />
§ Intel SVP and Intel Security GM Chris Young and existing management team to lead the new company<br />
following transaction close<br />
Rationale<br />
§ "As we collaborate with TPG to establish McAfee as an independent company, we will also share in the<br />
future success of the business and in the market demand for top-flight security solutions, creating long-term<br />
value for McAfee's customers, partners, employees and Intel's shareholders. Intel will continue our<br />
collaboration with McAfee as we offer safe and secure products to our customers.” - Brian Krzanich, CEO of<br />
Intel<br />
§ "We believe that McAfee will thrive as an independent company. With TPG's investment, along with<br />
continued support from Intel, McAfee will sharpen its focus and become even more agile in its response to<br />
today's rapidly evolving security sector." - Jim Coulter, Co-Founder and Co-CEO of TPG<br />
TPG Security Portfolio<br />
Company TPG Partner Investment<br />
10/15<br />
NA 10/11 NA<br />
(Sold Firewall Biz)<br />
5/13 376.2 3/11 NA<br />
Bryan Taylor<br />
9/2/15 Series G<br />
$117.5M<br />
($3.4B Pre-Money)<br />
Lead Investor<br />
2/13 NA 2/11 10.7<br />
Nehal Raj<br />
8/3/15 Series D<br />
$85.0M<br />
($1.0B Pre-Money)<br />
Lead Investor<br />
2/12 NA 8/10 6,907.7<br />
Source: Company press releases and websites, 451 Research. 20
Proofpoint Acquires ReturnPath, Email Fraud Protection Division<br />
Acquisition Extends Proofpoint’s Suite Of Business Email Compromise (BEC) Solutions.<br />
Transaction Overview<br />
Return Path’s Email Fraud Protection Overview<br />
Acquires<br />
Messaging Security<br />
Date:<br />
8/24/2016<br />
Total Raised: $126.1M<br />
HQ:<br />
New York, NY<br />
Founded:<br />
1999<br />
CEO:<br />
Matt Blumberg<br />
$18 Million<br />
Consumer Email Fraud Protection<br />
Through a combination of authentication, reputation, and<br />
heuristics checks, Return Path offers complete spear phishing<br />
protection for inbound email threats (domain spoofing and<br />
brand spoofing).<br />
Managed Service<br />
Provide global 24/7 support, strategic project management,<br />
and unparalleled technical expertise<br />
Block<br />
Inbound threats before they<br />
hit your employees<br />
Key Features<br />
Enterprise Email Fraud Protection<br />
Return Path helps you block bad emails spoofing your<br />
domains before they hit customer inboxes and empowers you<br />
to identify and respond to attacks spoofing your brand in<br />
other ways.<br />
DMARC<br />
Domain-based Message Authentication, Reporting &<br />
Conformance—DMARC—protocol aims to put an end to<br />
domain-based email threats.<br />
Detect<br />
Inbound threats that make<br />
it into the employee inbox<br />
Remediate<br />
Detected malicious email<br />
Proofpoint Acquisition History Since 2013<br />
Date Announced Target Deal Value ($M) Date Announced Target Deal Value ($M)<br />
11/3/2015 9.0 10/1/2013 23.0<br />
3/2/2015 32.3 8/9/2013 25.0<br />
10/23/2014 34.8 7/25/2013 2.5<br />
5/20/2014 22.8 4/9/2013 4.5<br />
Transaction Summary & Rationale<br />
§ Proofpoint paid $3.8 million at the close of the transaction and will spend the remaining $14.2<br />
million over two years to complete the deal<br />
§ “With our proprietary email threat data and technical expertise at its disposal, Proofpoint will<br />
now be fully equipped to offer the best end-to-end spear phishing solution on the market today.<br />
We are thrilled to partner with Proofpoint going forward and believe that the combined solution<br />
will be stronger for our Email Fraud Protection customers as well as a great home for the<br />
employees in our EFP division.” - Matt Blumberg, Co-Founder & CEO, Return Path<br />
Source: Company press releases and websites, 451 Research.<br />
21
Thoma Bravo Acquires Healthcare IT Security Company Imprivata<br />
Imprivata Became The Second Public <strong>Cybersecurity</strong> Company To Get Acquired In July. <br />
Transaction Overview<br />
Imprivata Overview<br />
Date:<br />
EV / LTM Rev:<br />
7/13/2016<br />
3.7x<br />
Imprivata Confirm ID<br />
OneSign<br />
EV / LTM EBITDA:<br />
NM<br />
Platform Capabilities<br />
Acquired<br />
HQ:<br />
Lexington, MA<br />
+<br />
Single sign-on, authentication management,<br />
and virtual desktop roaming enabling<br />
Founded: 2001<br />
Identity & Access Management<br />
CEO: Omar Hussain<br />
Users: 2,800,000+<br />
$488.5 Million<br />
§ Comprehensive identity and two-factor<br />
identification platform<br />
§ Combines security with convenience<br />
§ Creates a secure chain of trust<br />
Enables secure collaboration across care<br />
teams and organizations<br />
Transaction Details<br />
§ Thoma Bravo to acquire the remaining 95.2% stake in Imprivata,<br />
funded with equity from Thoma Bravo Fund XII<br />
§ Imprivata acquired for $19.25, a 33% premium to Imprivata’s last<br />
closing price of $14.50<br />
§ Imprivata made its public debut in June 2014 at a price of $15.00<br />
Rationale<br />
§ “We're tremendously excited about Thoma Bravo's investment in our company and believe this<br />
transaction represents a great outcome for our current shareholders. Given Thoma Bravo's successful track<br />
record in both security and healthcare IT, today's partnership is an endorsement of Imprivata's corporate<br />
vision and our relentless focus on the customer experience -- a value which has established us as the<br />
vendor of choice in healthcare IT security.” – Omar Hussain, President & CEO of Imprivata<br />
Source: Company press releases and websites, Capital IQ, 451 Research.<br />
22
Avast Acquires AVG With Financial Support By CVC Capital Partners<br />
Avast + AVG Creates Significant Scale In Consumer Security. <br />
Transaction Overview<br />
AVG Stock Performance Since 2015<br />
§<br />
§<br />
Backed By<br />
Acquired<br />
Endpoint Security<br />
Date:<br />
EV / LTM Rev:<br />
EV / NTM Rev:<br />
EV / LTM EBITDA:<br />
Transaction Funding<br />
EV / NTM EBITDA:<br />
$1.46 Billion<br />
7/7/2016<br />
Avast will acquire AVG for $1.5 billion in cash, paying $25 a share, a<br />
33% premium over 7/6 closing price and 32% over 6-mo average<br />
3.4x<br />
3.3x<br />
Avast plans to finance the transaction using cash balances on hand and<br />
committed debt financing from third party lenders<br />
§ Avast has received a financing commitment of $1.69 billion from<br />
Credit Suisse, Jefferies and UBS<br />
§ In addition, Avast has contributed $150 million in equity<br />
Source: Company press releases and websites, 451 Research.<br />
11.7x<br />
9.1x<br />
Share Price ($)<br />
$25<br />
$20<br />
$15<br />
Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16<br />
§ Advanced web and cloud security<br />
§ Mobile Encrypted Users: traffic management<br />
§<br />
100+<br />
Network<br />
Million<br />
performance Scale and In optimization<br />
Consumer<br />
Security<br />
Desktop<br />
Users:<br />
90+ Million<br />
Rationale<br />
"Our new scale will allow us to accelerate investments in growing markets and continue to focus on providing<br />
comprehensive and simple-to-use solutions for consumers and businesses, alike. As the definition of online<br />
security continues to shift from being device-centric, to being concerned with devices, data and people, we<br />
believe the combined company, with the strengthened value proposition, will emerge as a leader in this growing<br />
market,“ said Gary Kovacs, CEO, AVG<br />
23<br />
400M+ Users<br />
Mobile Users<br />
60+ Million<br />
Desktop<br />
Users:<br />
170+ Million<br />
Avast Purchase Price @ $25 / Share<br />
§ Combination creates significant scale in consumer<br />
security with 400M+ users, including 160M+ on<br />
mobile<br />
§ AVG will provide Avast with new growth in<br />
consumer mobile and SMB markets<br />
§ Highly complementary geographical presence<br />
extends Avast’s reach into higher monetizing geos
Notable<br />
Fundraising<br />
Activity
1 <br />
$40.0M<br />
$40.0M<br />
$30.0M<br />
$32.0M<br />
Series D Financing<br />
Series C Financing<br />
Series B Financing<br />
Venture Round<br />
September 26, 2016<br />
September 15, 2016<br />
September 13, 2016<br />
September 13, 2016<br />
$15.0M<br />
Series B // Debt Financing<br />
August 23, 2016<br />
$27.5M<br />
Venture Round<br />
August 18, 2016<br />
$21.0M<br />
Series C Financing<br />
August 2, 2016<br />
StackPath<br />
$180.0M<br />
Series A Financing<br />
July 25, 2016<br />
$64.0M<br />
Series C Financing<br />
July 5, 2016
Raises $40M In Series D Financing.<br />
Description<br />
Founders /<br />
Management<br />
Skyhigh Networks, a cloud access security company, enables companies to embrace<br />
cloud services with appropriate levels of security, compliance, and governance for<br />
financial services, professional services, healthcare, high technology, media and<br />
entertainment, manufacturing, and legal customers. It offers Skyhigh Cloud Access<br />
Security Manager, which enables and accelerates the secure adoption of cloud services;<br />
and rapid discovery, instant analysis, and 3-click security services.<br />
Rajiv Gupta<br />
Co-Founder & CEO<br />
Founded 2011<br />
HQ<br />
Campbell, California<br />
Amount Raised $106.5M<br />
Company Overview<br />
Kaushik Narayan<br />
Co-Founder & CTO<br />
Kamal Shah<br />
SVP, Products &<br />
<strong>Market</strong>ing<br />
Sekhar Sarukkai<br />
Co-Founder & SVP<br />
Engineering<br />
A Trusted Leader In Security, Governance, and Enablement<br />
Trevor Eddy<br />
SVP, Sales<br />
Product Overview<br />
A single, seamlessly integrated cross-cloud platform for all cloud security needs<br />
VISIBILITY<br />
§ Provides comprehensive cloud usage<br />
analytics<br />
§ Asses risk and sensitive data<br />
§ Enables real-time coaching and policy<br />
enforcement<br />
THREAT PROTECTION<br />
§ Leverages machine learning to detect<br />
compromised accounts, malware, and<br />
other threats<br />
§ Responds to exfiltration attempts<br />
§ Supports post-incident investigation<br />
Funding Summary: $88.0M $106.5M<br />
COMPLIANCE<br />
§ Customizes policies to identify<br />
regulated data<br />
§ Enforces DLP procedures<br />
§ Optimizes remediation action to<br />
restore files and permissions<br />
DATA SECURITY<br />
§ Limits risk through controlled<br />
encryption of sensitive data<br />
§ Defines contextual access control<br />
policies to protect data from<br />
unauthorized access<br />
Broad Industry Coverage<br />
Financial Services Healthcare Education<br />
Government Manufacturing<br />
Proven CASB Expertise<br />
40%<br />
of Fortune 500<br />
30 Million<br />
Users<br />
600+<br />
Enterprises<br />
5x More<br />
Customers Than Other<br />
CASBs<br />
Date Stage Amount Raised ($M) Selected Investors<br />
Sept 2016 Series D<br />
40.0<br />
Jun 2014 Series C<br />
40.0<br />
May 2013 Series B<br />
20.0<br />
Apr 2012 Series A 6.5<br />
26
Raises $40M In Series C Financing.<br />
Description<br />
Founders /<br />
Management<br />
BitSight Technologies is transforming how companies manage information security risk<br />
with objective, verifiable and actionable Security Ratings. The company built its<br />
Security Rating Platform to continuously analyze vast amounts of external data on<br />
security issues and behaviors in order to help organizations manage third party risk,<br />
underwrite cyber insurance policies, benchmark performance, conduct M&A due<br />
diligence and assess aggregate risk.<br />
Stephen Boyer<br />
Co-Founder & CTO<br />
Founded 2011<br />
HQ<br />
Cambridge, Massachusetts<br />
Amount Raised $88.0M<br />
Company Overview<br />
Nagarjuna Venna<br />
Co-Founder & CPO<br />
Shaun McConnon<br />
CEO<br />
Tom Turner<br />
President & COO<br />
Transforming The Way Organizations Evaluate Risk<br />
Jacob Olcott<br />
VP Business<br />
Development<br />
SECURITY RATINGS<br />
Enhances position visibility through<br />
daily security performance ratings<br />
§ Gathers and analyzes global security<br />
outcome data to create sophisticated<br />
algorithm<br />
§ Produces objective daily security<br />
ratings, alerts changes, and provides<br />
actionable information to mitigate risk<br />
§ Improves accuracy in benchmarking,<br />
risk management, and cyber insurance<br />
applications<br />
Product Overview<br />
Funding Summary: $88.0M<br />
DISCOVER<br />
Follows outside-in model to uncover<br />
and pinpoint potential risks<br />
§ Identifies third and fourth party<br />
connections in vast network of<br />
vendors and service providers<br />
§ Highlights precise point of failure in<br />
supply chain<br />
§ Assesses dependencies in an<br />
organization’s network and returns a<br />
comprehensive analysis of risk<br />
aggregation<br />
Date Stage Amount Raised ($M) Selected Investors<br />
INTEGRAL TO <br />
BUSINESS DECISIONS <br />
PROVEN FOR <br />
MANAGING RISK <br />
HIGHEST QUALITY <br />
DATA <br />
FAIR & <br />
OBJECTIVE <br />
Sept 2016<br />
Jun 2015<br />
Series C<br />
Series B<br />
23.0<br />
40.0<br />
Jun 2013<br />
Series A<br />
24.0<br />
HISTORICAL PERFORMANCE <br />
MEASUREMENT <br />
RESPONSIBLE DATA <br />
STEWARDSHIP <br />
UNPARALLELED <br />
CUSTOMER SUCCESS <br />
NATIONAL SCIENCE <br />
FOUNDATION (NSF) BACKING <br />
Apr 2011<br />
Seed<br />
1.0<br />
27
Raises $30.0M In Series B Financing.<br />
Description<br />
Company Overview<br />
Cato Networks, provides organizations with a software-defined and cloud-based secure<br />
enterprise network. Cato delivers an integrated networking and security platform that<br />
securely connects all enterprise locations, people and data. The Cato Cloud reduces<br />
MPLS connectivity costs, eliminates branch appliances, provides direct, secure internet<br />
access everywhere, and seamlessly integrates mobile users and cloud infrastructures to<br />
the enterprise network.<br />
Product Overview<br />
One Network. One Security. One Policy.<br />
The Cato Cloud delivers Network Security as a Service by tightly integrating<br />
enterprise networking and network security - in the Cloud<br />
Cato Cloud <br />
Founders /<br />
Management<br />
Shlomo Kramer<br />
Co-Founder & CEO<br />
Gur Shatz<br />
Co-Founder & CtO<br />
Glenn Esposito<br />
VP Sales, Americas<br />
Yishay Yovel<br />
VP <strong>Market</strong>ing<br />
Aviram Katzenstein<br />
VP Operations<br />
Cloud<br />
Network<br />
Security<br />
Services<br />
Management<br />
Application<br />
Cato Editions<br />
(Web/Cloud/Network)<br />
Founded 2015<br />
HQ<br />
Tel-Aviv, Israel<br />
Amount Raised $50M<br />
Cato Cloud Features <br />
USE CASES FOR CATO NETWORKS<br />
Integrated Network &<br />
Security In The Cloud<br />
Low Latency Network<br />
@ Affordable Price<br />
Your IT Team,<br />
Augmented<br />
Enterprise-Grade Security<br />
Within Your Reach<br />
Cloud Wide Threat<br />
Visibility<br />
Always Up to Date<br />
Agile Cloud Software<br />
APPLIANCE<br />
ELIMINATION<br />
DIRECT INTERNET<br />
ACCESS<br />
SECURE & OPTIMIZED<br />
SD-WAN<br />
Funding Summary: $50.0M<br />
Date Stage Amount Raised ($M) Selected Investors<br />
Sept 2016<br />
Series B<br />
30.0<br />
LOW LATENCY<br />
AFFORDABLE WAN<br />
HYBRID CLOUD<br />
NETWORK INTEGRATION<br />
MOBILE WORKFORCE<br />
SECURE CLOUD ACCESS<br />
Oct 2015<br />
Series A<br />
20.0<br />
28
Raises $32.0M Venture Round.<br />
Description<br />
Company Overview<br />
Claroty enables customers to secure and optimize the industrial control networks that<br />
run the world’s most critical infrastructure. The company’s enterprise-class OT security<br />
platform is designed to address the unique safety and reliability requirements necessary<br />
to protect industrial networks– e.g., industrial control systems, SCADA, industrial IOT<br />
and others.<br />
Product Overview<br />
Claroty discovers the most granular OT network elements, extracts the critical information, and distills it<br />
into actionable insights needed to secure and optimize complex industrial control environments<br />
Cyber Security<br />
Gain extreme visibility to uncover<br />
advanced threats and malicious activity<br />
Operational Resilience<br />
Utilize real-time monitoring to detect<br />
human error and operational issues<br />
Founders /<br />
Management<br />
See <br />
Know <br />
Secure<br />
Amir Zilberstein<br />
Co-Founder & CEO<br />
Founded 2014<br />
HQ<br />
New York, New York<br />
Amount Raised $32.0M<br />
Supported Vendors<br />
Benny Porat<br />
Co-Founder & CTO<br />
Galina Antova<br />
Co-Founder & Chief of<br />
Business Development<br />
Nadav Zafrir<br />
Team8 Founder &<br />
Claroty President<br />
OT Networks<br />
Yaron Shalom<br />
CFO & COO<br />
Complete Network View<br />
Full representation of the network topology,<br />
revealing all connections between assets,<br />
across all different zones and levels<br />
Advanced View Filters<br />
Claroty lets you create any custom view using<br />
a set of filters, including: protocol, firmware<br />
version, name, asset type, criticality, risk level,<br />
more<br />
Data Needed About Your Environment<br />
Claroty provides detailed asset and<br />
communications information presented in<br />
various dashboards and tables<br />
Baseline Deviations<br />
Claroty learns the finite set of connections,<br />
conversations and commands that represent the<br />
legitimate behavior for each asset, and alerts on<br />
anomalous behavior that violates it<br />
Critical Changes<br />
Real-time monitoring for normal, but high-risk<br />
changes that pose an operational safety, security<br />
or process integrity risk<br />
Malicious Activity<br />
Asset behavior that indicates distinct malicious<br />
presence and activity in the network<br />
Real-Time Monitoring<br />
Claroty constantly monitors OT networks<br />
using safe deep packet inspection by<br />
summarizing multiple associated events<br />
into a single robust alert<br />
Proactive Network Enhancement<br />
Leverage Claroty’s extreme visibility to<br />
optimize the OT network, prevent cyber<br />
attacks and ensure process integrity.<br />
Incident Response and Forensics<br />
Respond quickly and efficiently to critical<br />
issues and conduct deeper analysis to<br />
understand the incident root causes.<br />
Electric Power <br />
Oil & Gas <br />
Funding Summary: $32.0M<br />
Date Stage Amount Raised ($M) Selected Investors<br />
Manufacturing <br />
Sept 2016 Series A + B 32.0<br />
Chemicals <br />
Data Center <br />
29
Raises $12M In Series B Financing and $3M in Debt Financing.<br />
Description<br />
Founders /<br />
Management<br />
Founded 2013<br />
HQ<br />
Amount Raised<br />
ThreatQuotient develops cyber security software that enables organizations to manage threat<br />
intelligence and defend against cyber-attacks. It offer Threat Intelligence Platform, which ingests and<br />
centralizes over 120+ feeds ranging from commercial cloudsourcing communities to malware<br />
sandboxes. The platform uses third party tools to provide insights to enrich your data with OpenDNS,<br />
VirusTotal, Threat Recon, and more. The turnkey integration of over 25 security technologies keeps your<br />
detection system up to date with the most high risk indicators.<br />
John Czupak<br />
President and CEO<br />
Sterling, VA<br />
$27.2M<br />
Company Overview<br />
Wayne Chiang<br />
Chief Architect &<br />
Co-Founder<br />
Ryan Trost<br />
CTO & Co-Founder<br />
Leonard Kurtzman<br />
CFO<br />
Marc Solomon<br />
CMO<br />
Over 120+ feeds ranging from commercial cloud sourcing communities, open source<br />
intelligence blacklists, and malware sandboxes.<br />
Product Overview<br />
ThreatQ: Threat Intelligence Platform<br />
Centrally manages and correlates<br />
external sources with internal security<br />
and analytics solutions for contextual<br />
intelligence on a single screen<br />
Ingest & Centralize Data Nurture Indicators Automate Deployment <br />
Enable your choice of over<br />
120+ feeds<br />
Date Stage Amount Raised ($M) Selected Investors<br />
Aug 2016<br />
Debt<br />
Financing<br />
3.0<br />
Automatically correlate<br />
IOCs and leverage a variety<br />
of third party tools to<br />
provide additional insights<br />
to enrich data<br />
Funding Summary: $27.2M<br />
Turnkey integrations with 25+<br />
security technologies enables<br />
you to keep your detection<br />
systems up to date with the<br />
most high risk indicators <br />
Aug 2016<br />
Dec 2015<br />
Series B<br />
Series A<br />
12.0<br />
10.2<br />
Apr 2015<br />
Seed<br />
2.0<br />
30
Raises $27.5M In Venture Round.<br />
Company Overview<br />
Product Overview<br />
Description<br />
ID Experts, provides software and services to organizations for managing cyber risks and<br />
data breaches, and to consumers to protect and restore their identities from identity theft. It<br />
offers a Data Breach Response that provides digital forensics investigation, data breach<br />
notification and crisis communications, credit monitoring, identity monitoring, and health<br />
monitoring services for the U.S. organizations, attorneys, and insurers.<br />
YourResponse<br />
Data Breach Response<br />
YourResponse is a proprietary, patented<br />
methodology for analyzing and<br />
responding to a data breach incident<br />
that results in the most positive<br />
outcomes.<br />
Complete Identity Protection<br />
MyIDCare is the most complete<br />
solution for protecting privacy,<br />
bringing victims peace of mind and<br />
protecting your organization’s good<br />
name.<br />
Medical Identity Monitoring<br />
MIDAS is our innovative medical ID<br />
alert system. This technology serves two<br />
purposes. It protects individuals from<br />
medical ID theft while also helping<br />
health insurers address fraud & abuse.<br />
Founders /<br />
Management<br />
Founded 2003<br />
HQ<br />
Amount Raised<br />
Portland, Oregon<br />
$32.5M<br />
Bob Gregg<br />
CEO<br />
Rick Kam<br />
President &<br />
Co-Founder<br />
Chris Kane<br />
COO / CIO<br />
Paul O’Mara<br />
Sr. VP, Sales &<br />
Professional Services<br />
Trusted Partners For Data Breach & Identity Protection<br />
Doug Pollack<br />
Chief Strategy &<br />
<strong>Market</strong>ing Officer<br />
ID Experts serve all sizes and industries but specializes in healthcare and government<br />
Government<br />
Largest provider of identity protection services<br />
to the federal government--Tier 1 status on the<br />
GSA Blanket Purchase Agreement for Identity<br />
Protection Services<br />
Health Plans<br />
Increasingly at risk from cyber intrusions,<br />
health plans are becoming proactive in<br />
protecting their members from fraud-ID Experts<br />
solutions are unmatched<br />
Your Response services include:<br />
§ Digital Forensics- analysis on data<br />
breaches<br />
§ Data Breach Notification-quick and<br />
exact notifications of breach<br />
Breach Products Include:<br />
§ Credit Monitoring-credit reports<br />
from all 3 credit bureaus<br />
§ Identity Monitoring- covers all<br />
aspects of a person’s identity<br />
§ Health Monitoring-monitors all<br />
aspects of patient medical records<br />
§ Cyberscan- 24/7 internet<br />
surveillance<br />
Date Stage Amount Raised ($M) Selected Investors<br />
Aug 2016<br />
Venture<br />
MyIDCare is split into two categories:<br />
§ Monitoring-includes credit, cyber,<br />
identity, and healthcare monitoring<br />
§ Recovery-identities are restored to<br />
pre-theft status<br />
MyIDCare includes:<br />
§ Single/Tri Credit Monitoring<br />
§ MIDAS: Medical Identity Monitoring<br />
§ Cyber & Identity Monitoring<br />
§ ID Theft Insurance<br />
§ Recovery Superhero<br />
§ Member Services<br />
Funding Summary: $32.5M<br />
27.5<br />
Midas services include:<br />
§ Protects from Medical Identity Theftmembers<br />
can review claims, keeping<br />
medical records secure<br />
§ Detects Healthcare Fraud- alert<br />
driven model engages members as<br />
first line of defense to identify fraud<br />
§ Engages Members for ACA<br />
Compliance- involves patients more<br />
closely in their care<br />
§ Lowers Healthcare Cost- helps you<br />
identify and respond to fraud much<br />
earlier, thus lowering costs<br />
Trusted By:<br />
Jan 2016<br />
Series A<br />
5.0<br />
31
Raises $21M In Series C Financing.<br />
Description<br />
Founders /<br />
Management<br />
Distil Networks provides public and private cloud security software that blocks<br />
malicious bots and automated computer programs attacking Websites. Its software<br />
enables users to protect their Websites against Web scraping, competitive data mining,<br />
form spam, and click frauds. The company serves mid-market and enterprise customers<br />
worldwide.<br />
Rami Essaid<br />
CEO & Co-Founder<br />
Founded 2011<br />
HQ<br />
Arlington, Virginia<br />
Amount Raised $59.1M<br />
Company Overview<br />
Engin Akyol<br />
CTO & Co-Founder<br />
Andrew Stein<br />
Chief Scientist &<br />
Co-Founder<br />
Dominick Fuccillo<br />
VP of Finance &<br />
Corp Dev<br />
Courtney Cleaves<br />
Director of<br />
<strong>Market</strong>ing<br />
Bot Detec0on & <br />
Mi0ga0on <br />
Distil’s protection leverages<br />
machine learning algorithms,<br />
real time device fingerprinting,<br />
and the world’s largest Known<br />
Violators Database<br />
Cloud CDN <br />
§ Deploy in minutes on global network<br />
§ Optimized content for faster delivery & less bandwidth<br />
§ Increases web scalability<br />
Product Overview<br />
API <br />
Security <br />
Distil’s API Security tracks API<br />
clients and monitors acceptable<br />
usage, acting as an automatic<br />
shield against API hijacking,<br />
scraping, and abuse<br />
Deployment Op0ons <br />
Funding Summary: $59.1M<br />
Threat <br />
Intelligence <br />
Distil’s Threat Intelligence service<br />
delivers insights on IP addresses<br />
gathered from thousands of<br />
organizations including consumers<br />
& commercial ISPs<br />
Appliance <br />
§ Easy installs on virtualized or metal appliances<br />
§ Seamless integration with CDNs, load balancers, & network<br />
infrastructure<br />
§ Automatically obtains new bad bot fingerprints<br />
Protects Leading Websites<br />
Acquisition Summary<br />
Date Stage Amount Raised ($M) Selected Investors<br />
Aug 2016<br />
Series C<br />
21.0<br />
Acquired For $10M<br />
in Jan 2016 <br />
ScrapeSentry, an MSSP, added a 24/7 SOC<br />
and team of analysts to respond to bot threats<br />
in real-time and provide post-incident<br />
response <br />
Jun 2015<br />
May 2014<br />
Jan & Mar 2013<br />
2012-2016<br />
Series B<br />
Series A<br />
Seed<br />
Debt<br />
Financing<br />
21.0<br />
10.0<br />
2.0<br />
5.1<br />
32
StackPath<br />
StackPath Raises $180 Million In A Series A Round & Acquires Four Companies In The Process.<br />
Description<br />
Founders /<br />
Management<br />
Company Overview<br />
StackPath is a web services platform for security, speed and scale. It is the first<br />
platform to unify enterprise security solutions by leveraging collaborative intelligence<br />
that makes each service smarter and more secure with every threat detected, in<br />
addition to vastly improving the customer experience. It effectively deputizes each<br />
service on the host network with the authority to identify and communicate real-time<br />
threats against it to an intelligent data repository.<br />
Security<br />
Web Services Built Secure, Powered<br />
By Machine Learning<br />
§ Cloud based DDoS protection<br />
technology<br />
§ Layers of physical security<br />
§ Data secured with AES and TLS<br />
Product Overview<br />
Network<br />
Frictionless Global Scale, Built<br />
On Security<br />
§ Built for 100Gbps connectivity<br />
§ Designed for customers growth<br />
§ Regular vulnerability scans look for<br />
unauthorized usages<br />
Dr. Lance Crosby<br />
Chairman & CEO<br />
Andrew Higginotham<br />
COO, President<br />
Kimberly Sheehy<br />
CFO<br />
Paul Drew<br />
CIO<br />
Taylor Dondich<br />
VP Engineering<br />
Why StackPath?<br />
Founded 2015<br />
HQ<br />
Dallas, Texas<br />
Amount Raised $180 M<br />
Speed<br />
Speed, not only from<br />
network capacity but<br />
from support as well<br />
Scale<br />
Unified interface for<br />
all of your essential<br />
services for scalability<br />
Support<br />
24/7 Customer<br />
Support<br />
StackPath Acquisition Summary<br />
Date Acquired Company Company Description<br />
July 2016<br />
July 2016<br />
July 2016<br />
April 2016<br />
MaxCDN is a content delivery network that helps companies accelerate static<br />
and dynamic content around the world.<br />
Fireblade offers web security services in the areas of DDoS protection, Web<br />
application security, performance monitoring, and web acceleration aspects.<br />
Staminus develops advanced security availability technology to mitigate the<br />
largest and most complex DDoS attacks in the world.<br />
Cloak is a consumer VPN platform with native iOS and Mac applications to<br />
allow people to securely use the internet while on untrusted networks.<br />
Simplicity<br />
Only web services<br />
platform with flat, global<br />
pricing and no contracts<br />
Funding Summary: $180.0M<br />
Transparency<br />
Publish Net Promoter Score<br />
(NPS) and real-time network<br />
latency statistics to website<br />
Date Stage Amount Raised ($M) Selected Investors<br />
July 2016<br />
Series A<br />
30.0<br />
150.0<br />
Insiders<br />
33
Raises $64M In Series C Financing.<br />
Description<br />
Founders /<br />
Management<br />
Company Overview<br />
Darktrace is a leader in Enterprise Immune System technology, a new category of cyber<br />
solutions based on pioneering Bayesian mathematics. Darktrace addresses the<br />
challenge of insider threat and advanced cyber-attacks through its unique ability to<br />
detect previously unidentified threats in real time, as manifested in the emerging<br />
behaviors of the network, devices and individuals. Some of the world’s largest<br />
organizations rely on Darktrace’s adaptive, self-learning platform to spot anomalous<br />
activity within the enterprise, in sectors including energy and utilities, financial services,<br />
telecommunications, retail and transportation.<br />
Threat Visualizer<br />
Shines a Light Into Your<br />
Network<br />
§ Unique Global View of Enterprise<br />
§ Flexible Dashboard<br />
§ Real-time Global Threat Mapping<br />
Product Overview<br />
Antigena<br />
Self-learns, Self-Defends In<br />
Real Time<br />
§ Extends Darktrace’s Core Power of<br />
Detection<br />
§ Stops Threats Before They Spread<br />
§ Action Taken is Always Highly Targeted<br />
Nicole Eagan<br />
CEO<br />
Steve Chamberlain<br />
CFO<br />
Poppy Gustafsson<br />
COO<br />
Gary Szukalski<br />
CMO<br />
Jack Stockdale<br />
Global CTO<br />
Enterprise Immune System<br />
Founded 2013<br />
HQ<br />
London, England<br />
Amount Raised $104.5M in 3 Rounds<br />
No Rules or<br />
Signatures<br />
Advanced Machine<br />
Learning<br />
Real-Time Threat<br />
Detection<br />
Founded By Intelligence Experts<br />
From Cambridge, MI5, and GCHQ<br />
Driven By World-Leading Mathematicians<br />
Revenue growth<br />
over 100% since<br />
2014<br />
Selected Customers<br />
Funding Summary: $104.5M<br />
Date Stage Amount Raised ($M) Selected Investors<br />
Jul 2016 Series C<br />
64.0<br />
Security Company<br />
of the Year 2016<br />
Jul 2015<br />
Series B<br />
22.5<br />
Mar 2015<br />
Series A<br />
18.0<br />
34
M&A Activity in<br />
<strong>Cybersecurity</strong>
Strategic Moves For Competitive Advantage Accelerating<br />
The Landscape Of Buyers For <strong>Cybersecurity</strong> Companies Has Expanded Over Time.<br />
<strong>Cybersecurity</strong> <br />
PE<br />
Notable Deals By Sector<br />
IT<br />
IT<br />
PE<br />
9/16: $1.3B / 3.5x<br />
9/16: NA / NA 7/16: $1.5B / 3.4x<br />
9/16: $4.2B / NA<br />
6/16: $293M / 10.0x+<br />
6/16: $4.7B / 7.9x<br />
Defense<br />
ISP<br />
Industrial<br />
6/16: $600M / NA<br />
Industrial / IoT<br />
1/16: $275M / 6.9x<br />
ISP<br />
7/15: $190M / NA<br />
Defense<br />
1/16: NA / NA<br />
10/15: $9M / NA<br />
10/15: $400M / 7.5x<br />
Most Active Acquirers<br />
12/14: $710M / 6.0x<br />
7/15: NA / NA<br />
4/15: $1.9B / NA<br />
7/14: NA / NA<br />
4/15: $786M / 3.6x<br />
10/14: $233M / 3.0x<br />
Source: Momentum Partners.<br />
36
<strong>Cybersecurity</strong> M&A Activity: Deal Volume and Exit Multiples<br />
<strong>Cybersecurity</strong> M&A Activity In Q3 Has Retreated To More Normalized Levels.<br />
<strong>Cybersecurity</strong> M&A Volume By Year (# Deals)<br />
Median <strong>Cybersecurity</strong> EV/TTM Revenue Multiples<br />
107<br />
101<br />
88<br />
100<br />
136<br />
143<br />
97<br />
5.5x<br />
5.0x<br />
4.5x<br />
5.9x<br />
§<br />
2010 2011 2012 2013 2014 2015 YTD16<br />
After reaching record levels last year, <strong>Cybersecurity</strong> M&A activity in 2016 has retreated to<br />
more normalized levels (by # of deals)<br />
§ Total through 3Q16 announced M&A volume totaled $14.3B, representing 97<br />
deals (Visa Equity/Infoblox, TPG/McAfee, Avast/AVG in Q3 & Symantec/<br />
BlueCoat in Q2, represented the majority of $ amount ($11.6B))<br />
Contemplated transactions are increasingly falling into three categories:<br />
§<br />
§<br />
§<br />
Transformational (a la Symantec/Blue Coat; Avast/AVG)<br />
Opportunistic (a la Proofpoint/ReturnPath; Core Security/Damballa)<br />
Private Equity/Buyout (a la Vista Equity/Infoblox, Ping; TPG/McAfee)<br />
Source: Momentum Partners, 451 Research.<br />
37<br />
§<br />
§<br />
§<br />
2013 2014 2015 YTD16<br />
There are only 9 deals through 3Q16 with disclosed multiples at a median of 5.9x TTM<br />
revenue<br />
Q3 had several notable acquisitions involving Private Equity counterparties:<br />
§<br />
§<br />
§<br />
Vista Equity Partners acquired Infoblox, 3.5x TTM Revenue<br />
Thoma Bravo acquired Imprivata, 3.7x TTM Revenue<br />
Avast acquired AVG, 3.4x TTM Revenue (Backed by CVC Capital Partners)<br />
After two straight years of declining multiples, 2016 multiples have increased 32% since<br />
2015 and are inline with multiples in 2013<br />
§<br />
Several notable strategic transactions in 2013 included IBM/Trusteer (22.5x),<br />
Cisco/Sourcefire (8.9x) and McAfee/Stonesoft (7.0x)
<strong>Cybersecurity</strong> M&A: A Closer Look At Deal Value & Multiples<br />
<strong>Cybersecurity</strong> M&A Activity Since 2010 With Disclosed Transaction Values And Multiples. <br />
M&A By Deal Size<br />
M&A By Valuation Multiples (EV / LTM Rev)<br />
55%<br />
0.35<br />
50%<br />
45%<br />
40%<br />
47%<br />
97<br />
0.30<br />
0.25<br />
28%<br />
30%<br />
24%<br />
35%<br />
30%<br />
25%<br />
$213M Median Deal Size For >10x<br />
0.20<br />
0.15<br />
29<br />
32<br />
25<br />
18%<br />
19<br />
20%<br />
15%<br />
10%<br />
5%<br />
14%<br />
28<br />
16%<br />
33<br />
11%<br />
22<br />
6%<br />
7%<br />
12 15<br />
0.10<br />
0.05<br />
22<br />
11<br />
0%<br />
>$0M - $50M $50M - $100M $100M - $250M $250M - $500M $500M - $1B $1B+<br />
0.00<br />
>0.0 - 3.0x 3.0x - 5.0x 5.0x - 10.0x 10.0x+<br />
§<br />
§<br />
The median exit enterprise value for <strong>Cybersecurity</strong> exits since 2010 was $65.0M<br />
M&A exits in <strong>Cybersecurity</strong> are typically below $100M – 61%+ of the time<br />
§<br />
Valuations for M&A exits in <strong>Cybersecurity</strong> vary for many reasons – growth, market leadership,<br />
customer validation, technology and team<br />
§<br />
Exits above $1B are rare representing 7% of all deals (5 public, 7 private and 3 spin-out)<br />
§<br />
Exits >10x are a minority (18%) where the buyers are typically cash rich and willing to pay what<br />
it takes (median cash balance of the buyers at time of acquisition was $2.9B and median market<br />
cap was $18.3B)<br />
Source: Momentum Partners, 451 Research, Capital IQ.<br />
Buyers<br />
38
Notable <strong>Cybersecurity</strong> M&A Transactions<br />
<strong>Cybersecurity</strong> M&A Transactions With Disclosed Transaction Values. <br />
Date Target Buyer Enterprise Value ($M) TTM Revenue ($M) EV / Revenue<br />
09/19/16 Infoblox Vista Equity Partners 1,254.3 358.3 3.5x<br />
09/07/16 McAfee TPG Capital 4,200.0 - -<br />
08/26/16 PhenixID Clavister Holding 11.5 1.1 10.5x<br />
08/24/16 Return Path, Email Fraud Protection Division Proofpoint 18.0 - -<br />
08/17/16 Modulo Security SAI Global 5.2 - -<br />
08/17/16 Sypris Electronics, Cyber Security Solutions Analog Devices 42.0 - -<br />
07/26/16 Appcito A10 Networks 6.5 - -<br />
07/25/16 OpenLimit WISeKey 20.4 13.1 1.6x<br />
07/22/16 Damballa Core Security Technologies 9.0 - -<br />
07/19/16 Confer Technologies Carbon Black 100.0 - -<br />
07/13/16 Imprivata Thoma Bravo 488.5 131.1 3.7x<br />
07/7/16 AVG Technologies AVAST Software 1,463.0 430.6 3.4x<br />
06/29/16 IDscan Biometrics GB Group 60.8 10.3 5.9x<br />
06/28/16 Cloudlock Cisco 293.0 − 10.0x+<br />
06/12/16 BlueCoat Symantec 4,722.2 598.3 7.9x<br />
06/07/16 AccelOps Fortinet 32.0 − −<br />
06/01/16 Ping Identity Corporation Vista Equity Partners 600.0 − −<br />
05/05/16 Advanced Security Consulting Falanx Group 0.8 − −<br />
04/27/16 ANXeBusiness Open Text 104.0 − −<br />
04/18/16 CSIdentity Experian 360.0 − −<br />
Source: Capital IQ, 451 Research.<br />
39
Notable <strong>Cybersecurity</strong> M&A Transactions<br />
<strong>Cybersecurity</strong> M&A Transactions With Disclosed Transaction Values. <br />
Date Target Buyer Enterprise Value ($M) TTM Revenue ($M) EV / Revenue<br />
03/23/16 Sookasa Barracuda Networks 0.4 − −<br />
03/10/16 Agata Solutions CyberArk 3.1 – –<br />
03/03/16 Safend SuperCom 1.5 – –<br />
02/29/16 Resilient Systems IBM 100.0 − −<br />
02/18/16 ValidSoft Cross River Initiatives 12.6 – –<br />
02/08/16 IronKey Enterprise Management Services DataLocker 0.4 – –<br />
02/08/16 IID Infoblox 45.0 – –<br />
02/01/16 Invotas FireEye 30.0 – –<br />
01/20/16 iSight Partners FireEye 275.0 40.0 6.9x<br />
01/13/16 ScrapeSentry Distil 10.0 − −<br />
01/05/16 TowerSec Harman Becker Automotive Systems 75.8 − −<br />
12/16/15 Evault Carbonite 14.0 − −<br />
12/14/15 SurfRight Sophos 31.8 − −<br />
12/11/15 Cyveillance LookingGlass Cyber Solutions 35.0 18.0 1.9x<br />
12/10/15 Trustev TransUnion 44.0 − −<br />
11/24/15 Fox-IT Group NCC Group 140.6 29.0 4.9x<br />
11/17/15 Aura Information Security Kordia Group Limited 6.5 − −<br />
11/09/15 Secure Islands Microsoft 77.5 − −<br />
11/09/15 Elastica Blue Coat Systems 280.0 7.5 37.3x<br />
11/02/15 Bloxx Akamai 18.7 − −<br />
Source: Capital IQ, 451 Research.<br />
40
Notable <strong>Cybersecurity</strong> M&A Transactions<br />
<strong>Cybersecurity</strong> M&A Transactions With Disclosed Transaction Values. <br />
Date Target Buyer Enterprise Value ($M) TTM Revenue ($M) EV / Revenue<br />
10/27/15 Lancope Cisco 452.5 − −<br />
10/22/15 Cloudpath Networks Ruckus Wireless 9.0 − −<br />
10/21/15 TippingPoint Technologies Trend Micro 300.0 169.0 1.8x<br />
10/19/15 Vormetric Thales e-Security 421.0 53.5 7.9x<br />
10/13/15 Logentries Rapid7 71.1 − −<br />
10/09/15 LastPass LogMeIn 115.7 11.2 10.3x<br />
10/08/15 Daegis Open Text 20.8 23.7 0.9x<br />
10/07/15 Viewfinity CyberArk 30.5 − −<br />
10/06/15 Code Green Networks Digital Guardian 18.0 − −<br />
10/05/15 Foreground Security Raytheon Company 62.0 − −<br />
09/29/15 Intronis Barracuda Networks 65.0 20.6 3.2x<br />
09/24/15 Billguard Prosper 30.0 − −<br />
09/22/15 Elitcore Technologies Sterlite Technologies 27.3 22.3 1.2x<br />
09/21/15 Absolute Software HEAT Software 11.0 − −<br />
09/16/15 Infoplex Bulletproof Group 2.6 4.3 0.6x<br />
09/08/15 Adallom Microsoft 290.0 − −<br />
09/04/15 Good Technology Blackberry 425.0 211.9 2.0x<br />
08/25/15 Above Security Hitachi Data Systems 4.7 − −<br />
08/06/15 Pawaa Software Cisco 5.0 − −<br />
07/31/15 Sansa Security ARM Holdings 71.6 − −<br />
Source: Capital IQ, 451 Research.<br />
41
Notable <strong>Cybersecurity</strong> M&A Transactions<br />
<strong>Cybersecurity</strong> M&A Transactions With Disclosed Transaction Values. <br />
Date Target Buyer Enterprise Value ($M) TTM Revenue ($M) EV / Revenue<br />
07/09/15 Caspida Splunk 190.0 − −<br />
06/30/15 OpenDNS Cisco Systems 635.0 − −<br />
06/26/15 White Sky Intersections 1.1 − −<br />
06/16/15 Knowledge Consulting Group ManTech International 68.0 − −<br />
06/10/15 Brivo Systems Dean Drako 50.0 − −<br />
06/09/15 Reflexion Networks Sophos 22.0 − −<br />
06/08/15 IdMlogic CA Technologies 20.0 − −<br />
06/02/15 nSense F-Secure 20.0 7.8 2.6x<br />
05/27/15 ShieldArc Palo Alto Networks 18.0 − −<br />
05/06/15 Privax AVG 60.0 − −<br />
05/04/15 NT Objectives Rapid7 6.5 − −<br />
04/28/15 Cervalis CyrusOne 400.0 70.0 5.7x<br />
04/21/15 Watchdox Blackberry 70.0 − −<br />
04/20/15 Websense Raytheon 1,900.0 − −<br />
04/14/15 Fidelis <strong>Cybersecurity</strong> Marlin Equity Partners 200.0 60.0 3.3x<br />
04/18/15 Oculis Labs Optio Labs 0.5 − −<br />
04/07/15 Trustwave Singtel 785.7 216.0 3.6x<br />
04/02/15 Lacoon Mobile Security Check Point 80.0 − −<br />
03/31/15 Redspin Auxilio 3.9 − −<br />
03/24/15 Accumuli NCC Group 82.8 34.9 2.4<br />
Source: Capital IQ, 451 Research.<br />
42
Notable <strong>Cybersecurity</strong> M&A Transactions<br />
<strong>Cybersecurity</strong> M&A Transactions With Disclosed Transaction Values. <br />
Date Target Buyer Enterprise Value ($M) TTM Revenue ($M) EV / Revenue<br />
03/10/15 Blue Coat Systems Bain Capital 2,400.0 − −<br />
03/10/15 CyActive Paypal 43.0 − −<br />
03/02/15 Emerging Threats Proofpoint 32.3 − −<br />
03/02/15 Xerocole Akamai 16.6 − −<br />
03/02/15 Cloudshield Lookingglass Cyber Solutions 5.0 − −<br />
02/24/15 Optenet Allot Communications 38.0 − −<br />
02/19/15 MegaPath Managed Services Business Global Technology & Telecom 152.4 142.4 1.2x<br />
01/14/15 IntellinX Bottomline Technologies 84.9 − −<br />
12/09/14 Tripwire Belden 710.0 118.5 6.0x<br />
11/13/14 Aorato Microsoft 200.0 − −<br />
11/05/14 Blackbird Technologies Raytheon 420.0 − −<br />
10/21/14 Silversky Networks BAE Systems 232.5 − −<br />
10/20/14 RightSignature Citrix Systems 36.0 − −<br />
10/13/14 Danaher (Textronix, Arbor, Fluke) Netscout 2,619.4 836.0 3.1x<br />
10/01/14 MobileSpaces Pulse Secure 100.0 − −<br />
09/15/14 Attachmate Micro Focus 2,159.4 875.4 2.5x<br />
09/11/14 Morvirtu Blackberry 32.5 − −<br />
09/04/14 Meldium LogMeIn 15.0 − −<br />
09/03/14 Location Labs AVG Technologies 220.0 33.0 6.7x<br />
09/02/14 BeyondTrust Software Veritas Capital 310.0 70.5 4.4x<br />
Source: Capital IQ, 451 Research.<br />
43
Notable <strong>Cybersecurity</strong> M&A Transactions<br />
<strong>Cybersecurity</strong> M&A Transactions With Disclosed Transaction Values. <br />
Date Target Buyer Enterprise Value ($M) TTM Revenue ($M) EV / Revenue<br />
09/02/14 SOFTPRO Kofax 34.7 13.3 2.6x<br />
08/08/14 SafeNet Gemalto 890.0 454.8 2.0x<br />
08/04/14 MDotLabs Comscore 4.5 − −<br />
07/31/14 NetClarity Hexis Cyber Solutions 1.9 − −<br />
07/29/14 Secusmart Blackberry 9.0 − −<br />
07/21/14 Retail Decisions ACI Worldwide 205.0 − −<br />
07/08/14 Delphiis Auxilio 2.7 − −<br />
07/07/14 CA Arcserve Data Protection Assets Marlin Equity Partners 170.0 − −<br />
06/23/14 ArmstrongAdams Accumuli 6.3 − −<br />
05/20/14 NetCitadel Proofpoint 22.8 − −<br />
05/19/14 Divide Google 120.0 − −<br />
05/06/14 nPulse Technologies FireEye 67.1 − −<br />
04/24/14 DecTech Solutions GB Group 34.2 9.8 3.5x<br />
04/23/14 docTrackr Intralinks 10.0 − −<br />
04/07/14 Metaforic INSIDE Secure 17.4 − −<br />
03/31/14 Blancco Oy Regenersis 82.7 17.1 4.8x<br />
03/24/14 Cyvera Palo Alto Networks 213.3 − −<br />
02/23/14 Boxtone Good Technology 101.0 20.9 4.8x<br />
02/10/14 Cyberoam Sophos 80.0 − −<br />
02/06/14 Skyfence Imperva 65.0 − −<br />
Source: Capital IQ, 451 Research.<br />
Note: NM – Not Meaningful<br />
44
Notable <strong>Cybersecurity</strong> M&A Transactions<br />
<strong>Cybersecurity</strong> M&A Transactions With Disclosed Transaction Values. <br />
Date Target Buyer Enterprise Value ($M) TTM Revenue ($M) EV / Revenue<br />
02/06/14 Incapsula Imperva 40.5 − −<br />
01/30/14 Tomium Imperva 8.1 − −<br />
01/22/14 AirWatch VMware 1,545.0 − −<br />
01/06/14 Morta Security Palo Alto Networks 10.3 − −<br />
01/02/14 MANDIANT FireEye 826.5 102.0 8.1x<br />
12/12/13 Lemon LifeLock 42.6 0.6 NM<br />
12/09/13 QUMAS Accelrys 47.8 19.3 2.5x<br />
12/03/13 Alaric NCR 78.4 − −<br />
12/02/13 Prolexic Akamai 402.6 − −<br />
10/29/13 Net Optics Ixia 190.0 49.0 3.9x<br />
10/01/13 41st Parameter Experian 324.0 − −<br />
Mean 286.4 133.4 5.2x<br />
Median 60.0 34.0 3.6x<br />
Source: Capital IQ, 451 Research.<br />
45
VC Activity in<br />
<strong>Cybersecurity</strong>
Financing Activity Since 2010<br />
<strong>Cybersecurity</strong> Startups Raised $15.1 Billion Across 1,244 Deals Since 2010.<br />
Investment Deals And Dollars<br />
($B) (2010 – 3Q16)<br />
108<br />
120<br />
$0.8 $0.8<br />
156<br />
$1.2<br />
201 207<br />
$1.7<br />
$2.7<br />
232 219<br />
$3.9 $3.9<br />
Investment Deals And Dollars<br />
($M) (Q1 2010 – Q3 2016)<br />
$1,699<br />
80<br />
$1,164<br />
$1,245<br />
64<br />
67 $1,271<br />
59<br />
57 61 72<br />
57<br />
51 49<br />
53<br />
47<br />
49<br />
49 50<br />
$931<br />
$920<br />
40<br />
42<br />
$844 $818<br />
30<br />
31 35<br />
33 36<br />
27<br />
30<br />
23<br />
24<br />
$446 $510 $427 $515 $545 $500 $543<br />
28<br />
$197 $212 $236 $141 $130 $219 $259 $242 $248 $264 $269 $261<br />
2010 2011 2012 2013 2014 2015 YTD16<br />
Q1'10<br />
Q2'10<br />
Q3'10<br />
Q4'10<br />
Q1'11<br />
Q2'11<br />
Q3'11<br />
Q4'11<br />
Q1'12<br />
Q2'12<br />
Q3'12<br />
Q4'12<br />
Q1'13<br />
Q2'13<br />
Q3'13<br />
Q4'13<br />
Q1'14<br />
Q2'14<br />
Q3'14<br />
Q4'14<br />
Q1'15<br />
Q2'15<br />
Q3'15<br />
Q4'15<br />
Q1'16<br />
Q2'16<br />
Q3'16<br />
Investments ($B)<br />
Deals<br />
Investments ($M)<br />
Deals<br />
§ 2016 has reached record numbers YOY, with 2016<br />
on pace to be larger than 2015 in both $ amounts<br />
and deal volume<br />
§ Dollars invested shows significant increase in<br />
3Q16, with 2016 on pace to outgrow 2015 by<br />
$1B+<br />
Source: Momentum Partners, CB Insights, Pitchbook Data.<br />
§ Over the last eight quarters investors have poured $8.6B into cybersecurity<br />
§ On a quarterly basis 3Q16 has become the 2 nd largest quarter, behind 1Q16 in investments, with value of<br />
deals reaching over $1.2B; additionally, deal volume has reached a record number at 80 Deals in 3Q16<br />
§ Although we saw a slow down in volume activity in September in comparison to July & August, deal value<br />
reached consistent levels MoM in Q316<br />
Note: Data for 2014 – 2016 includes only deals with amounts raised >$1M.<br />
47
<strong>Cybersecurity</strong> Startups And Investors<br />
List Of Most Well-Funded Startups And Most Active VC Investors.<br />
Most Well-Funded <strong>Cybersecurity</strong> Startups ($M)<br />
302 301<br />
283<br />
Most Active Investors in <strong>Cybersecurity</strong>*<br />
23 23<br />
22 22 22 22<br />
20<br />
232<br />
190 187 186 182 180 177 175<br />
156 156<br />
148 143<br />
16<br />
15<br />
14<br />
13<br />
12 12<br />
11<br />
§<br />
§<br />
§<br />
The top 15 most well-funded startups have raised $3.0B over their lifespan<br />
Tanium continues to top the list of most well-funded just ahead of Tenable, having<br />
raised $212M in 2015 and over $300M since 2007<br />
An additional 19 companies have raised between $100M and $140M for a total of<br />
$2.3B, including Digital Guardian ($135M), Netskope ($133M), Bracket Computing<br />
($132M), Pindrop Security ($122M), Ionic Security ($122M), Skybox Security<br />
($119M), Druva ($118M), Bromium ($116M), Darktrace ($105M)<br />
§<br />
Among investors, Bessemer Venture Partners and New Enterprise Associates have<br />
become the most active investors as we reach the end of 3Q16, having invested in 23<br />
companies each since 2010<br />
§<br />
Bessemer and NEA’s notable investments in 3Q16 included Claroty & Virtru<br />
and Cyence & ThreatQuotient, respectively<br />
§ Intel Capital, Sequoia Capital, Paladin Capital, Accel each followed with 22<br />
investments, respectively<br />
Source: PitchBook Data, Crunchbase.<br />
48<br />
* Investments in rounds with minimum size of $5 million.
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
29-Sept-16<br />
28-Sept-16<br />
28-Sept-16<br />
25-Sept-16<br />
Baseline Ventures, EDB Investments, EPIC<br />
Ventures, GV, KPCB, Northern Light, Venrock<br />
Sequoia Capital, Blue Cloud Ventures, EDB<br />
Investments, Hercules Capital, Tenaya Capital<br />
General Catalyst, Acero Capital, John<br />
Thompson, Paul Sagan, Ron Gula<br />
Thomvest Ventures, Greylock Partners, Sequoia<br />
Capital<br />
Shape Security stops automated web and mobile application attacks, like credential stuffing,<br />
content scraping, and application-layer DDoS, that bypass existing defenses.<br />
Druva Software provides data protection and governance solution for public and private clouds<br />
in an enterprise.<br />
Contrast Security develops application security software that stops hackers from stealing data<br />
through Web applications.<br />
Skyhigh Networks is a cloud access security company, enables companies to embrace cloud<br />
services with appropriate levels of security, compliance, and governance.<br />
19-Sept-16 Grotech Ventures, Paladin Capital Group White Ops provides online fraud detection solutions. It offers Real Time Dashboard, a solution<br />
that enables users to identify, track, and classify automated fraud in real time.<br />
15-Sept-16<br />
13-Sept-16<br />
13-Sept-16<br />
8-Sept-16<br />
GGV Capital, Flybridge Capital Partners,<br />
Globespan Capital Partners, Menlo Ventures<br />
Bessemer, ICV Capital, Innovation Endeavors,<br />
Marker, Mitsui, Red Dot Capital Partners<br />
Greylock Partners, Aspect Ventures, Singtel<br />
Innov8, USVP, Gur Shatz, Shlomo Kramer<br />
American Express Ventures, Menlo Ventures,<br />
TriplePoint Capital<br />
BitSight provides a security rating platform, which analyzes external data on security behaviors<br />
that allows to manage third party risk, and benchmark performance.<br />
Claroty discovers the most granular elements. By extracting critical data, and formulating<br />
actionable insights, it provides visibility and brings unparalleled clarity to OT networks.<br />
Cato Networks provides cloud-based platform to manage multiple hardware and software<br />
products and provide security against hacking, data theft and other security problems.<br />
Signifyd is a SaaS-based, enterprise-grade fraud technology solution for e-commerce stores.<br />
8-Sept-16 NEA, Dowling Capital Management, IVP Cyence has developed an economic cyber risk modeling platform quantifying cyber risk in<br />
probabilities and dollars.<br />
40.0<br />
51.0<br />
16.0<br />
40.0<br />
20.0<br />
40.0<br />
32.0<br />
30.0<br />
19.0<br />
40.0<br />
30-Aug-16<br />
Riverwood, Adams Street, Delta-v, EDB<br />
Investments, Exclusive Ventures, Siemens<br />
LogRhythm provides log management and security information and event management<br />
solutions.<br />
50.0<br />
30-Aug-16<br />
Millennium Technology Value Partners, Centana<br />
Growth Partners<br />
Jumio is an identity management and credentials company that helps businesses reduce fraud<br />
and increase revenue by utilizing proprietary computer vision technology.<br />
15.0<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
49
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
25-Aug-16<br />
24-Aug-16<br />
23-Aug-16<br />
22-Aug-16<br />
Maverick Ventures, Arsenal, Bloomberg Beta,<br />
Data Collective, Divergent, Signia Venture<br />
Trinity Ventures, Bessemer Venture Partners, K9<br />
Ventures, SVB<br />
NEA, Blu Venture Investors, Center for<br />
Innovative Technology<br />
Bessemer, Blue Delta Capital, Haystack<br />
Partners, NEA, Quadrant Capital, Soros Fund<br />
BlueTalon provides data-centric security for big data initiatives. It delivers precise, consistent<br />
and dynamic user access controls to data across Hadoop, Cassandra & SQL data platforms<br />
Auth0 is an identity-as-a-service that authenticates and authorizes apps/APIs with any popular<br />
identity provider running on any popular software stack on any popular device/cloud.<br />
ThreatQuotient offers a software platform that helps security teams mitigate cyber attacks by<br />
aggregating and managing intelligence on threats.<br />
Virtru provides data encryption and digital privacy protection, keeping data sent online private<br />
for individuals and organizations.<br />
18-Aug-16 Undisclosed Bat Blue is a cloud security service that leverages a unique Globally Distributed Security<br />
Abstraction Layer (Global Seal) technology to deliver uniform and consistent security.<br />
18-Aug-16<br />
11-Aug-16<br />
Trident Cyber, Peloton Equity, BlueCross<br />
BlueShield Venture, Sandbox Advantage<br />
Pelion Venture Partners, Square Peg Capital,<br />
Fenwick & West, IAG<br />
ID Experts provides software and services to organizations for managing cyber risks and data<br />
breaches, and to consumers to protect and restore their identities from identity theft.<br />
UpGuard analyzes data about the state of corporate networks to devise a numerical score that<br />
gives a security risk score, used by insurance companies for cyber insurance.<br />
8-Aug-16 Rally Capital, IDG Ventures, Ignition Partners Tempered Networks is a security platform that enables organizations to rapidly deploy identitybased<br />
overlay networks to ‘cloak’ trusted endpoints, networks and assets.<br />
3-Aug-16<br />
2-Aug-16<br />
27-Jul-16<br />
26-Jul-16<br />
Undisclosed<br />
Bessemer Venture Partners, Foundry Group,<br />
SVB, Techstars<br />
Paladin Capital Group, Bessemer Venture<br />
Partners<br />
Accel (Series A), Ignition Partners (Series B),<br />
Elieses (Series B)<br />
ThinAir keeps users safe by providing insight and protection against four key vectors of data<br />
breaches: Insider Threats, Criminal Adversaries, Data Exfiltration, and Human Error.<br />
Distil’s SaaS bot detection and mitigation solutions work like a protective shield and blocks<br />
malicious bots, malware and competitors that try to scrape websites without permission.<br />
PhishMe provides training to employees against phishing threats enabling them to identify,<br />
report, and mitigate spear phishing, malware and drive-by threats.<br />
Acalvio provides Advanced Threat Defense (ATD) solutions to detect, engage and respond to<br />
malicious activity inside the perimeter.<br />
16.0<br />
15.0<br />
12.0<br />
29.0<br />
13.5<br />
27.5<br />
17.0<br />
10.0<br />
15.0<br />
21.3<br />
42.5<br />
17.0<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
50
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
26-Jul-16<br />
Deutsche Telekom Partners, HP Pathfinder,<br />
Maverick Ventures, Sequoia, Shlomo Kramer<br />
SafeBreach provides a “hacker's view” of an enterprise’s security posture to proactively predict<br />
attacks, validate security controls and improve SOC analyst response.<br />
15.0<br />
25-Jul-16<br />
19-Jul-16<br />
ABRY Partners, Insiders<br />
Insight Venture Partners, Spark Capital, Union<br />
Square Ventures<br />
StackPath<br />
StackPath is a web services platform that unifies enterprise security, leveraging collaborative<br />
intelligence to make each service smarter/more secure with every threat detected.<br />
Sift Science offers large-scale machine-learning technology services that help e-commerce<br />
businesses detect and fight fraud.<br />
30.0<br />
180.0<br />
19-Jul-16 83North, Battery Ventures, Cisco Investments GuardiCore provides network security solutions for software-defined data centers.<br />
19-Jul-16<br />
19-Jul-16<br />
15-Jul-16<br />
Foundation Capital, Shasta Ventures, New York<br />
Life Insurance, Pitango, Lane Bess<br />
Accelerate IT Ventures, Grayhawk Capital,<br />
Benhamou Global, Generation Ventures<br />
Santander Bank<br />
Skycure is a predictive mobile threat defense company that actively detects and prevents mobile<br />
cyberattacks while preserving user privacy and experience.<br />
Blue Cedar Networks develops / operates Atlas platform, an end-to-end application security and<br />
connectivity solution to protect assets across the extended enterprise.<br />
Silent Circle is a global encrypted communications service that provides cutting-edge encrypted<br />
text, e-mail, mobile phone and video teleconferencing services.<br />
13-Jul-16 Carrick Capital Partners, Comcast Ventures Bay Dynamics develops automated cyber security and risk solutions for enterprises, by turning<br />
enterprise data into actionable information risk intelligence.<br />
13-Jul-16<br />
12-Jul-16<br />
Vertex Ventures, Aspect Ventures, Magma<br />
Venture Partners, Shlomo Kramer<br />
Greycroft Partners, Bloomberg Beta, Cisco,<br />
Jump Capital, K2 Intelligence, Tech Operators<br />
Indegy provides visibility and security for industrial control networks to ensure operational<br />
continuity and reliability.<br />
Flashpoint’s Deep & Dark Web data, expertise and technology enable organizations to glean<br />
intelligence that informs risk and protects their ability to operate.<br />
7-Jul-16 AM Partners, VMS Investment Group Post-Quantum, provides data confidentiality, authenticity, and access control solutions.<br />
20.0<br />
16.5<br />
11.0<br />
50.0<br />
23.0<br />
12.0<br />
10.0<br />
10.3<br />
6-Jul-16<br />
TenEleven Ventures, Rally Ventures, YL Ventures<br />
Twistlock develops a security suite for virtual container security in enterprises that enables<br />
developers and security operations teams to keep container-based applications safe.<br />
10.0<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
51
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
5-Jul-16<br />
KKR, Hoxton Ventures, Softbank, Summit<br />
Partners, TenEleven Ventures<br />
Darktrace’s Enterprise Immune System technology automatically detects and responds to<br />
emerging threats, powered by machine learning and mathematics from Univ. of Cambridge.<br />
64.0<br />
30-Jun-16<br />
28-Jun-16<br />
Undisclosed<br />
Blackstone Ventures, Cisco Investments,<br />
Crosslink Capital, Rally Ventures<br />
StackRox offers a software that provides cyber security and cloud computing services for the<br />
enterprises.<br />
Verodin is defining the emerging concept of instrumented security, enabling customers to<br />
measure and continuously validate the cumulative effectiveness of layered security.<br />
10.0<br />
10.0<br />
23-Jun-16<br />
22-Jun-16<br />
GV, Boldstart Ventures, Evolution Equity<br />
Partners, Sequoia Capital, Two Sigma<br />
Access Industries, Amplify Partners, Battery<br />
Ventures, Glilot Capital, Shlomo Kramer<br />
Security Scorecard provides a cybersecurity rating and continuous risk monitoring platform<br />
allowing enterprises to gain operational command of their security posture.<br />
LightCyber provides behavioral attack detection solutions and the first to integrate user, network<br />
and endpoint context to provide security visibility into attack activity.<br />
20.0<br />
20.0<br />
21-Jun-16<br />
CRV<br />
Zerto provides enterprise-class business continuity and disaster recovery solutions for<br />
virtualized infrastructure and cloud.<br />
20.0<br />
20-Jun-16 Delta-v Capital, LiveOak Venture Partners NSS Labs is an independent, information security research and testing organization.<br />
16-Jun-16 NEA, Wing Tigera is solving networking and security problems inherent in deploying and enforcing policy<br />
in large private, public, and hybrid enterprise clouds.<br />
8-Jun-16<br />
Insight, Blackstone, Capital One, Ten Eleven,<br />
DFJ, KKR, Fairhaven, Khosla<br />
Cylance utilizes artificial intelligence, algorithmic science and machine learning to proactively<br />
protect organizations against advanced threats.<br />
7-Jun-16 FTV Capital ReliaQuest is a pioneer in IT security solutions, ensuring that organizations remain secure and<br />
compliant as the IT world changes.<br />
7-Jun-16<br />
1-Jun-16<br />
Warburg Pincus, Lazarus Israel Opportunities<br />
Fund, Sierra Ventures, Telstra Ventures<br />
Amazon, Goldman Sachs, GV, Hayman Capital,<br />
Icon Ventures, KPCB, Meritech<br />
Zimperium is a mobile security startup that develops a mobile IPS to combat advanced modern<br />
cyber attacks on smartphones.<br />
Ionic Security, a data security platform, provides access control, intellectual property<br />
monitoring, data encryption, and policy management.<br />
16.0<br />
13.0<br />
30.0<br />
25.0<br />
45.0<br />
100.0<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
52
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
25-May-16<br />
Transunion, Bessemer Venture, Firstmark<br />
Capital, Rho Ventures<br />
Dashlane makes identity and payments simple and secure everywhere with its password<br />
manager and secure digital wallet.<br />
22.5<br />
24-May-16<br />
24-May-16<br />
Norwest, Greylock Partners, Alloy Ventures,<br />
Battery Ventures, First Round, Scale Venture<br />
Redline Capital, Telstra Ventures, Work-Bench,<br />
Allegis, Citi Ventures, Highland Capital<br />
Agari leverages the company’s proprietary, global telemetry network and patent-pending<br />
predictive Agari Trust Analytics to identify and stop phishing attacks.<br />
vArmour provides software-defined security solutions for virtualized data centers and<br />
government cloud operators.<br />
22.0<br />
41.0<br />
17-May-16<br />
StageOne Ventures, Magma, Greenfield Cities<br />
Holdings<br />
AVANAN is a stealth mode startup that offers enterprise-grade security for data in the cloud.<br />
14.9<br />
12-May-16 Sand Hill Ventures Wickr is a secret messaging app allowing its users to send and receive top-secret messages,<br />
pictures, videos, audios, and files.<br />
11-May-16<br />
Fairhaven Capital, .406 Ventures, MassMutual<br />
Ventures, Ascent Venture Partners<br />
Pwnie Express provides full threat detection of every wireless and wired device in and around<br />
your workplace.<br />
28-Apr-16 Bain Capital, True Ventures, Venrock Evident.io provides continuous cloud security for AWS, enabling rapid detection/remediation of<br />
risks, vulnerabilities, & compliance issues.<br />
27-Apr-16<br />
26-Apr-16<br />
21-Apr-16<br />
21-Apr-16<br />
20-Apr-16<br />
Helion Venture Partners, India Alternatives,<br />
Sistema Asia Fund, VenturEast<br />
NewSpring Capital, Atlanta Equity, Flybridge<br />
Capital Partners, Jvax Investment Group<br />
Institutional Venture Partners, General Catalyst,<br />
GV, Paladin Capital Group<br />
Scale Venture Partners, NEA, Sequoia,<br />
Commerce Ventures, Eleven Two Capital<br />
Blackbird Ventures, Costanoa, Paladin, Rally<br />
Ventures, Salesforce, Industry Ventures<br />
Seclore’s Enterprise Digital Rights Management solution enables organizations to control the<br />
usage of files wherever they go, both within and outside of organizations’ boundaries.<br />
VidSys provides a physical security information management (PSIM) and converged security<br />
and information management (CSIM) software platform.<br />
Anomali’s platform is a security intelligence solution that aggregates millions of threat indicators<br />
into existing security systems.<br />
Forter's platform uses cyber intelligence combined with behavioral and identity analysis to help<br />
merchants spot fraudulent transactions.<br />
Bugcrowd's Crowdcontrol® platform safely orchestrates a flexible array of managed bug<br />
bounty, penetration test, and responsible disclosure offerings.<br />
34.0<br />
12.9<br />
15.7<br />
12.0<br />
11.0<br />
32.0<br />
30.0<br />
15.0<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
53
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
15-Apr-16 Scale Venture Partners, .406 Ventures Threat Stack provides a fully integrated, cloud-native continuous monitoring solution that gives<br />
customers instant visibility and automatically responds to changes in their environment.<br />
14-Apr-16 Idinvest Partners, Crunchfund, Wellington Foods Onfido's identity verification software, powered by machine learning technology, verifies<br />
peoples identities before running further searches(i.e. Criminal/Anti-Money-Laundering).<br />
13-Apr-16<br />
Highland Capital Partners Europe, Auriga<br />
Partners, Galeo-Ventures, Waypoint Capital<br />
Smarter IT through analytics. Captures all local and network activities in real-time across all<br />
endpoints and transforms end-user data into actionable analytics.<br />
15.4<br />
25.0<br />
40.0<br />
13-Apr-16<br />
Advantech Capital, Qiming Venture, China<br />
Broadband, IDG Capital, Linear Venture<br />
FraudMetrix develops online software solutions for anti-theft and fraud management<br />
applications in financial, insurance, payment, and online shopping.<br />
32.0<br />
11-Apr-16<br />
Vertex Ventures, Data Collective, Andy<br />
Bechtolsheim<br />
PerimeterX is a provider of behavior-based threat protection technology. Its PerimeterX Bot<br />
Defender, accurately protects commerce, media and enterprise websites from any attack.<br />
12.0<br />
7-Apr-16 ARBY Partners Edgile provides strategic security and risk consulting services to Fortune 500 companies.<br />
35.0<br />
6-Apr-16<br />
24-Mar-16<br />
Drive Capital, Healthy Ventures, SVB, Khosla<br />
Ventures, Moonshots Capital, NCT Ventures<br />
A16z, Highland Capital, Intel Capital, Silver<br />
Lake Waterman, Lightspeed, Meritech Capital<br />
CrossChx is identity resolution for smarter healthcare, it creates a universal patient ID to<br />
organize healthcare data and enable a new breed of innovative applications.<br />
Bromium’s endpoint protection solutions automatically create hardware-isolated micro-VMs<br />
that secure every user task.<br />
15.5<br />
40.0<br />
15-Mar-16<br />
14-Mar-16<br />
GV, Cisco, Index Ventures, Intel Capital,<br />
Northgate, Sutter Hill Ventures, Thomvest<br />
Pelion Venture Partners, Madrona Venture<br />
Group<br />
Skyport Systems develops Hyper-Secured Infrastructure that ensures the security of missioncritical<br />
IT assets, with tight integration of compute, security, virtualization and policy.<br />
ICEBRG is a stealth network security company.<br />
10.0<br />
30.0<br />
25-Feb-16<br />
Menlo Ventures, QED Investors, IA Ventures,<br />
Allegis Capital, Tim Eades, Bill McKiernan<br />
Signifyd is a SaaS-based, enterprise-grade fraud technology solution for e-commerce stores.<br />
20.0<br />
23-Feb-16<br />
Accenture, AT&T, Nokia, Temasek Holdings,<br />
Cisco, Bessemer, Innovation Endeavors,<br />
Team8 is an incubator for cyber-security firms with specialty in defending against targeted,<br />
human-driven cyber-attacks<br />
23.0<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
54
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
17-Feb-16<br />
10-Feb-16<br />
10-Feb-16<br />
9-Feb-16<br />
Qihoo 360 Technology, Shanghai Ziyou<br />
Investment Management<br />
Qumra Capital, Entree Capital, Genesis<br />
Partners, Phoenix Insurance, NTT DOCOMO<br />
Sutter Hill Ventures, Clear Venture Partners,<br />
Battery Ventures, Amplify Partners<br />
Trinity Ventures, Ten Eleven Ventures, Storm<br />
Ventures, Passion Capital<br />
360 Security provides mobile security applications.<br />
Riskified operates a technology platform for online merchants that is used to prevent fraudulent<br />
and other transactions of risk.<br />
Vera operates as a data-security company that enables enterprises, IT organizations, and endusers<br />
to secure and share digital information across platforms and devices.<br />
Digital Shadows provides cyber situational awareness that helps organizations protect against<br />
cyber attacks, loss of intellectual property, and loss of brand integrity.<br />
4-Feb-16 Silver Lake Partners Symantec is a global provider of security and systems management solutions that help<br />
businesses and consumers secure and manage their information and identities.<br />
4-Feb-16<br />
3-Feb-16<br />
3-Feb-16<br />
Goldman Sachs, Accel, NEA, Bay Partners,<br />
Hummer Winblad, Morgenthaler Ventures<br />
Providence Equity Partners<br />
Cisco, Edison Partners, Georgian Partners,<br />
VentureLink, Northleaf Capital Partners<br />
Sonatype helps development organizations intelligently source, manage, assemble, secure and<br />
maintain open source and third-party components.<br />
Skybox Security provides integrated security solutions that provide visibility of exploitable<br />
attack vectors, hot spots of vulnerabilities, network misconfigurations and risky firewall rules.<br />
eSentire protects mid-sized organizations from sophisticated cyber threats in real-time 24/7 by<br />
leveraging behavioral, reputational and signature-based capabilities.<br />
3-Feb-16 NA Carbon Black provides endpoint threat detection, response, and prevention solutions to detect<br />
and stop cyber threats.<br />
1-Feb-16<br />
28-Jan-16<br />
26-Jan-16<br />
Foundation Capital, Eddy Shalev, Gilat<br />
Opponent<br />
Google Capital, IVP, Felicis Ventures, A16z, Citi<br />
Ventures, GV<br />
Lightspeed Venture Partners, Norwest Venture<br />
Partners, SingTel Innov8<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
Kaymera provides military-grade cyber defense solutions for mobile devices.<br />
Pindrop Security provides caller-ID products to detect, report, and mitigate phone fraud.<br />
Fireglass’ Threat Isolation Platform eliminates common attack vectors against browsers, emails,<br />
documents and web applications.<br />
55<br />
100.0<br />
25.0<br />
17.0<br />
14.0<br />
30.0<br />
100.0<br />
25.0<br />
17.0<br />
14.0<br />
30.0<br />
500.0<br />
500.0
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
21-Jan-16 Wellington Management ForeScout enables organizations to continuously monitor and mitigate security exposures and<br />
cyber attacks<br />
21-Jan-16 Fidelity Investments Malwarebytes develops anti-malware technologies to detect and remove malicious programs<br />
from PCs.<br />
20-Jan-16 Global Emerging <strong>Market</strong>s Limited WISeKey develops online security and identity management solutions worldwide.<br />
76.0<br />
50.0<br />
59.8<br />
13-Jan-16<br />
13-Jan-16<br />
TA Associates<br />
IVP, 83North, Battery Ventures, Harmony<br />
Partners, USVP, ClalTech, RTP Ventures<br />
StorageCraft provides best-in-class backup, disaster recovery and business continuity solutions<br />
for servers, desktops and laptops.<br />
Zerto provides enterprise-class disaster recovery and business continuity software for virtualized<br />
data centers and cloud environments.<br />
50.0<br />
187.0<br />
31-Dec-15<br />
16-Dec-15<br />
16-Dec-15<br />
Blue Coat, Knollwood Investments, Venrock,<br />
USVP<br />
Trustbridge Partners, Danhua Capital, Linear<br />
Capital Partners, Sparkland Ventures<br />
Brookline Venture Partners, Fairhaven Capital<br />
Partners, GE Pension Trust, LLR Partners<br />
Appthority develops application security solutions that help businesses identify the risks hidden<br />
inside mobile applications.<br />
Trustlook develops a static analysis platform for detecting suspicious behavior and malicious<br />
characteristics for Android operating systems.<br />
Digital Guardian provides data security solutions to protect data from insider and outsider<br />
threats.<br />
10.0<br />
17.0<br />
66.0<br />
15-Dec-15<br />
American Express Ventures, BDC Venture<br />
Capital, Blumberg Capital, Tenfore Holdings<br />
Trulioo provides online portal for identity verification services.<br />
15.0<br />
11-Dec-15<br />
9-Dec-15<br />
NewSpring Capital, Alsop Louie Partners,<br />
Neuberger Berman<br />
Amadeus Capital Partners, Aspect Venture<br />
Partners, Bain Capital Ventures<br />
Lookingglass Cyber Solutions develops cyber threat intelligence monitoring and management<br />
platforms.<br />
ForeScout enables organizations to continuously monitor and mitigate security exposures and<br />
cyber attacks.<br />
50.0<br />
75.4<br />
3-Dec-15<br />
Core Capital Partners, Genacast Ventures,<br />
Highland Capital Partners, NEA, SVB<br />
ZeroFOX provides real-time social threat analytics, intelligence, and advanced security<br />
protection via its cloud-based cyber platform.<br />
27.0<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
56
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
2-Dec-15 JMI Equity Avecto's Defendpoint software protects endpoints from malware and cyberattacks through<br />
privilege management, application control and sandboxing technology.<br />
2-Dec-15<br />
1-Dec-15<br />
1-Dec-15<br />
17-Nov-15<br />
11-Nov-15<br />
11-Nov-15<br />
Blu Venture Investors, NEA, Center for<br />
Innovative Technology<br />
Grotech Ventures, SAP National Security<br />
Services<br />
Alibaba, GE Ventures, Jérusalem Venture<br />
Partners, Poalim Ventures<br />
Tola Capital, Arsenal Venture, Crosslink Capital,<br />
Paladin Capital, Trinity Ventures<br />
Menlo Ventures, Jerusalem Venture Partners,<br />
OurCrowd, Draper Nexus<br />
Norwest Venture Partners, Invus Group,<br />
Accolade Partners, Shasta Ventures, REV<br />
ThreatQuotient offers a software platform that helps security teams mitigate cyber attacks by<br />
aggregating and managing intelligence on threats.<br />
ThreatConnect provides a cyber threat intelligence platform that allows global organizations to<br />
manage massive amounts of threat information.<br />
Theta Ray offers malware detection and prevention solutions for critical infrastructure,<br />
communication systems, and financial systems.<br />
ProtectWise offers cloud-based network security services.<br />
AppDome’s dynamic wrapping SaaS technology provides shield to enterprise and consumerfacing<br />
apps from advanced cyber threats, mobile fraud, and data theft.<br />
TigerText provides security software for text messaging for physicians to use on their mobile<br />
devices.<br />
10-Nov-15 Insight Venture Partners, Accel Partners Tenable Network Security specializes in developing software that enables real-time network<br />
monitoring to detect hackers and other malicious actors.<br />
9-Nov-15<br />
3-Nov-15<br />
2-Nov-15<br />
Costanoa Ventures, Foundation Capital, Split<br />
Rock Partners, Triangle Peak Partners<br />
Goldman Sachs<br />
Foundation Capital, Matrix Partners,<br />
Northbridge Venture Partners<br />
Guardian Analytics is provider of fraud prevention software for protecting online channels and<br />
accounts.<br />
iboss <strong>Cybersecurity</strong> provides innovative APT Defense, Web Security and Mobile Security<br />
Solutions.<br />
Confer provides endpoint detection and response solution (EDR) that proactively identifies<br />
attacks and provides real-time visibility across all endpoints.<br />
30-Oct-15 Merck Global Health Innovation Fund Exostar develops B2B information sharing software.<br />
49.0<br />
10.2<br />
16.0<br />
20.0<br />
20.0<br />
13.0<br />
50.0<br />
10.9<br />
35.0<br />
17.0<br />
15.0<br />
250.0<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
57
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
29-Oct-15 Undisclosed Lumeta provides network situational awareness platform which is source for enterprise network<br />
infrastructure and cybersecurity analytics.<br />
27-Oct-15 Aspect Venture Partners, US Venture Partners Cato Networks provides cloud-based platform to manage multiple hardware and software<br />
products and provide security against hacking, data theft and other security problems.<br />
27-Oct-15<br />
Index Ventures, Storm Ventures<br />
SourceClear develops software security platform for developers that help organizations identify<br />
components across software portfolio.<br />
25-Oct-15 Trident <strong>Cybersecurity</strong>, KPCB IronNet <strong>Cybersecurity</strong> provides suite of technologies that provide real-time threat assessment<br />
and updates and consulting services.<br />
14-Oct-15<br />
14-Oct-15<br />
Icon Ventures, Allegis Capital, Cowboy<br />
Ventures, KPCB, First Round Capital<br />
.406 Ventures, Accomplice, KPCB, Highland<br />
Capital, Evolution Equity Partners<br />
Area 1 Security provides campaign delivery systems and allows enterprises to identify cyber<br />
attacks and other attacking campaigns before they unfold using their anti phishing platform.<br />
Carbon Black provides endpoint threat detection, response, and prevention solutions to detect<br />
and stop cyber threats.<br />
13.0<br />
20.0<br />
10.0<br />
32.5<br />
15.0<br />
54.5<br />
14-Oct-15<br />
Fidelity Management, Goldman Sachs, Allegis<br />
Capital, A16z, NVP, Sutter Hill, GE, ARTIS<br />
Bracket Computing’s Virtual Infrastructure Software spans multiple heterogeneous clouds with<br />
one set of advanced security, data management, and networking infrastructure.<br />
46.4<br />
13-Oct-15<br />
GSR Ventures, NEA<br />
DataVisor provides big data security analytics to help protect consumer-facing websites and<br />
mobile apps from cyber criminals.<br />
14.5<br />
13-Oct-15<br />
7-Oct-15<br />
Charles River Ventures, Softbank, Spark Capital<br />
Third Point, Granite Hill, SineWave Ventures,<br />
Data Collective, Tiger Global, UpWest<br />
Cybereason delivers a technology platform that automatically uncovers malicious operations,<br />
reconstructing them as a clear image of a cyberattack in context.<br />
Sentinel One uses predictive execution inspection to detect and protect all devices against<br />
targeted zero day threats in real-time.<br />
25.0<br />
59.0<br />
6-Oct-15<br />
JMI Equity, NEA, Split Rock Partners, Accel<br />
Partners,<br />
Code42 Software provides secure cloud services for endpoint data protection and security that<br />
allow their users to limit risk, meet data privacy regulations, and recover from data loss.<br />
85.6<br />
30-Sep-15<br />
KPMG<br />
Norse delivers continuously-updated and unique Internet and darknet intel that helps<br />
organizations detect and block attacks.<br />
11.4<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
58
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
29-Sep-15<br />
DAG Ventures, AME Cloud Ventures, Juniper<br />
Networks, Intel Capital, IA Ventures, Accel<br />
Vectra Networks’ X-series platform uses next-gen compute architecture and combines data<br />
analytics and machine learning to detect attacks.<br />
54.5<br />
29-Sep-15<br />
Icon Ventures, Aspect Ventures, Shlomo Kramer,<br />
Norwest Venture Partners<br />
Exabeam offers machine-learning technology that focuses on cyber attacker behavior to detect<br />
modern cyber attacks.<br />
46.4<br />
25-Sep-15<br />
22-Sep-15<br />
Arsenal Venture, EDB Investments, Fairhaven<br />
Capital Partners, Ten Eleven Ventures<br />
Fidelity Management, Baidu, Qualcomm<br />
Ventures, Microsoft, NEA, Google, Venrock<br />
CounterTack provides real-time endpoint threat detection and response solutions to enterprises<br />
and government organizations.<br />
CloudFlare is a web performance and security company that provides online services to protect<br />
and accelerate websites online.<br />
14.5<br />
59.0<br />
21-Sep-15<br />
Orchard Holdings Group<br />
Morphick team has developed the only proven platform-enabled managed service to enable<br />
their customers to prevent, detect, and respond to even the most advanced attacks.<br />
25.0<br />
17-Sep-15<br />
Tano Capital<br />
Tascent develops and deploys biometric identity products and solutions based upon a strong<br />
heritage in iris recognition and multimodal high throughput and mobile biometrics.<br />
18.5<br />
10-Sep-15<br />
Allianz Digital Corp Ventures, Vertex, Magma<br />
Venture, SBI Holdings, Allianz, Magna Int’l<br />
Argus is an automotive cybersecurity pioneer, helping car manufacturers, their Tier I suppliers<br />
and aftermarket connectivity providers protect connected cars.<br />
26.0<br />
10-Sep-15 IVP, TPG, Andreessen Horowitz, T. Rowe Price Tanium provides security and systems management solutions to allow real-time data collection.<br />
147.5<br />
8-Sep-15<br />
Andreessen Horowitz, Greylock, Sequoia,<br />
Altimeter Capital, Glynn Capital, Khosla<br />
Okta is an integrated identity and mobility management service.<br />
75.0<br />
3-Sep-15<br />
2-Sep-15<br />
25-Aug-15<br />
ICONIQ, Accel Partners, Lightspeed, Social<br />
+Capital Partnership<br />
Bessemer Venture Partners, Citi Ventures,<br />
Innovation Endeavors, Marker, NEA<br />
Evolution Equity Partners, .406 Ventures,<br />
Arsenal Venture Partners<br />
Netskope performs deep usage analytics and enforces business and security policies in cloud<br />
apps.<br />
Illusive networks offers deception technology enabling protection against targeted attacks and<br />
APTs.<br />
Onapsis provides solutions for securing business-critical applications and infrastructure.<br />
75.0<br />
22.0<br />
17.0<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
59
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
24-Aug-15 Bessemer Venture Partners, Thomas Noonan Bastille is pioneering IoT security with next-generation security sensors and airborne emission<br />
detection, allowing corporations to accurately quantify risk and mitigate threats.<br />
19-Aug-15<br />
Lightspeed, Benchmark, Meritech Capital,<br />
Shasta Ventures, Tenaya Capital, Musea<br />
CloudPassage provides server security products for public and hybrid cloud hosting<br />
environments.<br />
18-Aug-15 IVP, GGV Capital, KPCB, Trident Capital AlienVault’s Unified Security Management Platform delivers a unified, simple and affordable<br />
solution for threat detection, incident response and compliance management.<br />
3-Aug-15<br />
28-Jul-15<br />
24-Jul-15<br />
14-Jul-15<br />
13-Jul-15<br />
13-Jul-15<br />
1-Jul-15<br />
25-Jun-15<br />
24-Jun-15<br />
Google Capital, TPG Capital, EMC, Lightspeed<br />
Venture Partners<br />
DFJ Growth, Dell Ventures, KKR, Blackstone,<br />
Thomvest, Khosla, Draper Nexus, TenEleven<br />
Accelerate IT Ventures, Trident Capital,<br />
Panasonic Venture Group<br />
Summit Partners<br />
Accel Partners, Google Capital, Rackspace,<br />
Warburg Pincus<br />
Blackstone, Allegis Capital, Marc Benioff, Igor<br />
Sill, Kevin Plank, Christian Lawless<br />
Pinnacle Ventures, Redpoint eVentures, Quihoo<br />
360 Technology<br />
Insight Venture Partners<br />
NEA, Benchmark, New Enterprise Associates,<br />
Marc Benioff, David Sacks, Drew Houston<br />
Zscaler offers integrated, cloud-delivered Internet security including web security, firewalls,<br />
mobile security, IoT security and DLP.<br />
Cylance utilizes artificial intelligence, algorithmic science and machine learning to proactively<br />
protect organizations against advanced threats.<br />
Mocana creates and develops mobile application protection (MAP) app-shielding solutions,<br />
enabling users to secure mobile apps.<br />
Darktrace’s Enterprise Immune System technology automatically detects and responds to<br />
emerging threats, powered by machine learning and mathematics from Univ. of Cambridge.<br />
CrowdStrike is a global provider of security technology and services focused on identifying<br />
advanced threats and targeted attacks.<br />
RedOwl Analytics provides proactive risk oversight software solutions for compliance, insider<br />
threat & investigations.<br />
PSafe is a Brazilian company developing Secure Cloud Computing software suites such as the<br />
PSafe Antivirus for safe internet browsing.<br />
CheckMarx.com develops software solutions that are used to identify security vulnerabilities in<br />
Web and mobile applications.<br />
HackerOne provides a vulnerability management and bug bounty platform.<br />
13.8<br />
35.9<br />
52.0<br />
110.0<br />
42.0<br />
14.8<br />
25.0<br />
100.0<br />
17.5<br />
30.0<br />
84.0<br />
25.0<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
60
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
24-Jun-15<br />
18-Jun-15<br />
9-Jun-15<br />
8-Jun-15<br />
1-Jun-15<br />
1-Jun-15<br />
28-May-15<br />
New Enterprise Associates, Sigma Prime<br />
Ventures<br />
Bessemer Venture Partners, Correlation<br />
Ventures, IDEA Fund Partners, Techstars<br />
Intel Capital, QuestMark Partners, Silver Lake<br />
Partners<br />
Sutter Hill Ventures, Engineering Capital,<br />
General Catalyst, Osage University Partners<br />
Sapphire Ventures, Foundation Capital, Matrix<br />
Partners, Trinity Ventures, Chris Rust<br />
DFJ Growth, Accel, Glynn Capital, Greylock,<br />
IVP, Sequoia, Sutter Hill, Tenaya Capital<br />
Excel Venture Management, Flare Capital,<br />
Heritage Group, HLM Venture, NVP, Merck<br />
Barkly uses high-performance local analytics and a unique design to stop attacks in the moment<br />
while preventing tampering from users and attackers.<br />
Distil’s SaaS bot detection and mitigation solutions work like a protective shield and blocks<br />
malicious bots, malware and competitors’ that try to scrape websites without permission.<br />
Venafi provides enterprise key and certificate management security solutions – the Immune<br />
System for the Internet.<br />
Menlo Security is a stealth cyber security company that develops security solutions eliminating<br />
the threat of advanced malware.<br />
Cyphort develops cloud services, software, and appliance-based solutions to protect enterprises<br />
against the newest cyber threats.<br />
Sumo Logic is a log management and analytics company that leverages Big Data for real-time IT<br />
insights.<br />
ClearDATA offers security, privacy, and compliance services to the hospitals, physician<br />
practices, electronic medical record software, and healthcare markets.<br />
12.5<br />
21.0<br />
39.0<br />
25.0<br />
30.0<br />
25.0<br />
80.0<br />
20-May-15 Carmel Ventures, Lightspeed Venture Partners enSilo offers a real-time targeted attack exfiltration prevention platform.<br />
10.0<br />
19-May-15<br />
China Broadband Capital Partners, China<br />
Growth Capital, IDG Capital Partners<br />
FraudMetrix develops online software solutions for anti-theft and fraud management<br />
applications in financial, insurance, payment, and online shopping.<br />
30.0<br />
19-May-15<br />
18-May-15<br />
18-May-15<br />
Andreessen Horowitz, Corazon Capital<br />
Oak HC/FT, Espirito Santo Ventures, Sapphire<br />
Ventures<br />
Comcast Ventures, Commonwealth Capital,<br />
Flybridge Capital, Globespan Capital, Menlo<br />
Keybase allows users to easily encrypt, decrypt and share messages within a tried-and-tested<br />
encryption standard.<br />
Feedzai provides a platform that uses real-time, machine-based learning to help payment<br />
networks, banks and retailers prevent fraud in omnichannel commerce.<br />
BitSight provides a security rating platform, which analyzes external data on security behaviors<br />
that allows to manage third party risk, and benchmark performance.<br />
10.8<br />
17.5<br />
23.0<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
61
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
6-May-15<br />
16-Apr-15<br />
15-Apr-15<br />
14-Apr-15<br />
Spark Capital, CRV, Lockheed Martin<br />
Reed Elsevier Ventures, Atlas Venture, Balderton<br />
Capital, GV, IA Ventures, In-Q-Tel<br />
Index Ventures, Intel Capital, Sutter Hill<br />
Ventures<br />
HP Ventures, Index Ventures, Sequoia Capital,<br />
Rembrandt<br />
Cybereason delivers a technology platform that automatically uncovers malicious operations,<br />
reconstructing them as a clear image of a cyberattack in context.<br />
Recorded Future arms organizations with real-time threat intelligence, allowing them to<br />
proactively defend against cyber attacks.<br />
Skyport Systems develops Hyper-Secured Infrastructure that ensures the security of missioncritical<br />
IT assets, with tight integration of compute, security, virtualization and policy.<br />
Adallom is a cloud access security broker which delivers visibility, governance and protection<br />
for cloud applications.<br />
25.0<br />
12.0<br />
30.0<br />
30.0<br />
14-Apr-15<br />
Accel Partners, Andreessen Horowitz,<br />
BlackRock, General Catalyst, Formation 8<br />
llumio provides cloud solutions, specializing in virtualization, networking, and security hailing<br />
services.<br />
100.0<br />
9-Apr-15<br />
Venrock, Index Ventures, New Enterprise<br />
Associates<br />
Niara's solution blends diverse data sources, sophisticated analytics and forensics to discover<br />
compromised users and provide insight into malicious insiders.<br />
20.0<br />
8-Apr-15 Andreessen Horowitz, Citi Tanium provides security and systems management solutions to allow real-time data collection.<br />
6-Apr-15<br />
1-Apr-15<br />
DRW Investors, Icon Ventures, Leapfrog<br />
Ventures, Math Venture Partners<br />
AITV, Cisco, EPIC Ventures, Trident Capital,<br />
Vanedge Capital, Vmware, Fortinet<br />
RedSeal develops security risk management (SRM) software and solutions and helps companies<br />
eliminate cyber threats.<br />
HyTrust, a cloud security automation company, provides administrative control, auditing, &<br />
data security for private, hybrid, and public clouds.<br />
26-Mar-15 Aldrich Capital Partners, Paladin Capital PhishMe provides training to employees against phishing threats enabling them to identify,<br />
report, and mitigate spear phishing, malware and drive-by threats.<br />
26-Mar-15<br />
25-Mar-15<br />
Accel Partners, Flybridge Capital Partners,<br />
Greycroft Partners, Millenium Technology<br />
Neuberger Berman Group, Alsop Louie<br />
Partners, Peninsula Ventures<br />
BetterCloud provides critical insights, automated management, and intelligent data security for<br />
cloud office platforms.<br />
Lookingglass Cyber Solutions develops cyber threat intelligence monitoring and management<br />
platforms.<br />
64.0<br />
17.0<br />
33.0<br />
13.0<br />
25.0<br />
20.0<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
62
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
24-Mar-15<br />
20-Mar-15<br />
Bain Capital Ventures, Commerce Ventures,<br />
Lightspeed Venture Partners<br />
August Capital, Engineering Capital, Norwest<br />
Venture Partners, Wing Venture Partners<br />
InAuth is the most complete mobile authentication and anti-fraud solution offering multiple<br />
security options to financial institutions and the mobile transaction market.<br />
Palerra provides software that combines threat detection, predictive analytics, security<br />
configuration management and automated incident response & remediation in one platform<br />
29.9<br />
17.0<br />
19-Mar-15<br />
ONSET Ventures, Voyager Capital, Presidio<br />
Ventures, LDV Partners, Envision Ventures<br />
Vidder mitigates network-based attacks by making servers invisible to everyone except<br />
authorized users.<br />
12.0<br />
19-Mar-15<br />
Redpoint Ventures, Benchmark Capital, GV,<br />
Lead Edge Capital, Radar Partners<br />
Duo Security provides two-factor authentication as a service to prevent account takeover and<br />
data theft.<br />
30.0<br />
18-Mar-15<br />
Invoke Capital, Hoxton Ventures, Talis Capital<br />
Darktrace’s Enterprise Immune System technology automatically detects and responds to<br />
emerging threats, powered by machine learning and mathematics from Univ. of Cambridge.<br />
18.4<br />
3-Mar-15<br />
Benhamou Global Ventures, Cybernaut Venture<br />
Capital, Lakewood & Company<br />
IdentityMind Global provides an on-demand platform offering next generation risk management<br />
and anti-fraud services for the e-commerce ecosystem.<br />
10.8<br />
10-Mar-15<br />
Allegis Capital, March Capital Partners, The<br />
Hive<br />
E8 Security helps enterprises analyze and detect advanced attacks and malicious insider<br />
activities.<br />
10.7<br />
26-Feb-15<br />
Undisclosed<br />
Silent Circle is a global encrypted communications service that provides cutting-edge encrypted<br />
text, e-mail, mobile phone and video teleconferencing services.<br />
50.0<br />
26-Feb-15<br />
Telstra Ventures, Sierra Ventures, Samsung<br />
Ventures, Lazarus Israel, Toyo Corporation<br />
Zimperium, a mobile cyber security company, develops Mobile Intrusion Prevention System.<br />
12.0<br />
25-Feb-15 Wing Venture Capital, Norwest Venture Partners Dtex Systems develops and provides secure user activity solutions.<br />
15.4<br />
25-Feb-15<br />
Rogers Venture Partners, Blue Sky Capital<br />
SecureKey develops platform-as-a-service based hardware and software solutions for chip-based<br />
identity and payment technologies.<br />
19.0<br />
18-Feb-15<br />
Institutional Venture Partners, Andreessen<br />
Horowitz, Felicis Ventures, Redpoint, Citi<br />
Pindrop Security provides caller-ID products to detect, report, and mitigate phone fraud.<br />
35.0<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
63
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
17-Feb-15<br />
BOLDStart Ventures, Evolution Equity Partners,<br />
Sequoia Capital<br />
SecurityScorecard is a provider of security risk assessment service for cloud-based information<br />
systems.<br />
13.7<br />
10-Feb-15<br />
Alcatel Lucent, Bessemer Venture Partners,<br />
Cisco, Innovation Endeavors, Marker<br />
Team 8 is an incubator for cyber-security firms with specialty in defending against targeted,<br />
human-driven cyber-attacks.<br />
18.0<br />
10-Feb-15 83North, Bessemer Venture Partners Wandera provides security and management of mobile data for global enterprises.<br />
15.0<br />
26-Jan-15<br />
Bessemer Venture Partners, Columbia Capital<br />
Verato helps rightly identifying individuals regardless of whether their names, addresses or other<br />
personal information was incorrect or out-of-date.<br />
12.5<br />
16-Jan-15<br />
Avalon Ventures, NHN Investment Corp<br />
Air Computing cloud platform AeroFS allows enterprise customers to synch and share all data<br />
securely behind a firewall with unlimited storage.<br />
10.0<br />
13-Jan-15<br />
KPCB, Meritech Capital Partners, Icon Ventures,<br />
Google Ventures, TechOperators<br />
Ionic Security, a data security platform, provides access control, intellectual property<br />
monitoring, data encryption, and policy management.<br />
40.1<br />
31-Dec-14<br />
Bessemer Venture Partners<br />
iSight Partners provides cyber threat intelligence solutions to public sector and commercial<br />
entities.<br />
30.0<br />
19-Dec-14<br />
GGV Capital, Icon Ventures, KPCB, Google<br />
Ventures, Greylock Partners,<br />
Synack provides a cloud-based platform that enables customer data integrity, privacy, and<br />
confidentiality.<br />
25.0<br />
16-Dec-14<br />
Scale Venture Partners, Charles River Ventures,<br />
Social+Capital Partnership<br />
OneLogin's cloud-based Identity and Access Management solution allows enterprises of all<br />
sizes to secure their cloud and on-premise apps for all users and devices.<br />
25.0<br />
16-Dec-14<br />
ATA Ventures, Northgate Capital, RWI Ventures,<br />
TVC Capital<br />
EdgeWave engages itself in the design, development and marketing of internet security<br />
appliances, services and offers secure content management and policy compliance services.<br />
13.0<br />
16-Dec-14<br />
Technology Crossover Ventures, Bain Capital<br />
Ventures<br />
Rapid7 provides vulnerability management and security data and analytic software solutions<br />
and services.<br />
31.0<br />
9-Dec-14<br />
Grotech Ventures, Khosla Ventures, Citi Ventures<br />
DB Networks provides behavioral analysis solutions for intrusion detection and database<br />
security.<br />
17.0<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
64
Venture Capital Activity<br />
Venture Capital Raises >$10 Million Since Q3 2014.<br />
Investment<br />
Date<br />
Selected Investor(s) Company Business Description<br />
Amount<br />
Raised ($M)<br />
9-Dec-14<br />
DCM, DDS, DoCoMo Capital, ONSET<br />
Ventures, Raven Venture Partners and others<br />
Nok Nok Labs develops products and services for online security and authentication.<br />
16.3<br />
8-Dec-14<br />
Summit Partners, Battery Ventures, Florence<br />
Venture Partners<br />
RiskIQ provides a software-as-a-service product that eliminates online and mobile threats.<br />
27.5<br />
8-Dec-14<br />
Auriga Partners, VI Partners, Mannai Corp<br />
Nexthink is the innovator of End-user IT Analytics for security, ITSM and workplace<br />
transformation.<br />
14.5<br />
4-Dec-14<br />
General Catalyst Partners, Palladin Capital,<br />
Google Ventures, IVP<br />
Anomali’s platform is a security intelligence solution that aggregates millions of threat indicators<br />
into existing security systems.<br />
22.5<br />
19-Nov-14<br />
Transamerica Ventures, T-Venture, Delta<br />
Partners, Andreessen Horowitz<br />
CipherCloud provides cloud information protection solutions.<br />
50.0<br />
19-Nov-14<br />
Bessemer, Columbia Capital, KPCB, Paladin<br />
Capital, Top Tier, Edgemore Capital, Savano<br />
Endgame provides security intelligence and analytics solutions for real-time visibility and<br />
actionable insight across their digital domains.<br />
30.0<br />
18-Nov-14<br />
General Catalyst Partners, Osage Partners<br />
Menlo Security, a stealth cyber security company, develops a security solution that eliminates<br />
the threat of advanced malware.<br />
10.5<br />
18-Nov-14 IPV Capital, ANT Financial V-Key provides mobile application threat research, protection, and intelligence solutions.<br />
12.0<br />
18-Nov-14<br />
Battery Ventures, Amplify Partners, Chris Rust,<br />
Nick Mehta<br />
Vera operates as a data-security company that enables enterprises, IT organizations, and endusers<br />
to secure and share digital information across platforms and devices.<br />
14.0<br />
11-Nov-14<br />
NEA, Sequoia Capital, Commerce Ventures,<br />
Eleven Two Capital<br />
Forter's platform uses cyber intelligence combined with behavioral and identity analysis to help<br />
merchants spot fraudulent transactions.<br />
15.0<br />
22-Oct-14<br />
Benhamou Global Ventures, Javelin Venture<br />
Partners, Lakewood & Co, Vital Venture<br />
Spikes Security provides browser-based security software solutions to businesses.<br />
12.0<br />
Total Amount Raised ($M) 7,048.1<br />
Source: Capital IQ, PitchBook Data, CrunchBase.<br />
Median Amount Raised ($M) 21.6<br />
65
<strong>Cybersecurity</strong><br />
Public Trading<br />
Analysis
<strong>Cybersecurity</strong> Sector vs Benchmark Performance<br />
Equity Performance Continued to Rebound through Q3 2016.<br />
3 Months 6 Months 12 Months<br />
High Growth 21.2% 16.5% (2.6%)<br />
Low Growth 10.2% 4.8% (0.8%)<br />
NASDAQ 9.7% 9.1% 15.0%<br />
S&P 500 3.3% 5.1% 12.9%<br />
120<br />
110<br />
100<br />
HACK* 16.8% 17.2% 10.5%<br />
15.0%<br />
12.9%<br />
10.5%<br />
-2.6%<br />
-0.8%<br />
90<br />
80<br />
70<br />
60<br />
Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16<br />
Source: Capital IQ, market data as of September 30, 2016.<br />
* PureFunds ISE <strong>Cybersecurity</strong> ETF.<br />
High Growth Low Growth S&P 500 Index NASDAQ COMPOSITE INDEX HACK<br />
67
<strong>Cybersecurity</strong> Multiples Have Rerated<br />
Public <strong>Market</strong> Valuations for <strong>Cybersecurity</strong> Have Compressed Considerably Over The Past 12 Months.<br />
Max 12.9x<br />
Company EV/2015E Revenue EV/2016E Revenue % Change<br />
34.3%<br />
Reduction<br />
Max 8.6x<br />
1.8x 3.3x 78.7%<br />
2.0x 3.4x 71.4%<br />
4.9x 5.7x 16.9%<br />
0.9x 0.9x 0.3%<br />
Median 7.6x<br />
9.1x 8.5x 6.3%<br />
8.1x 6.9x 13.8%<br />
3.6x 2.8x 23.4%<br />
8.8x 6.7x 23.5%<br />
Median 5.0x<br />
9.9x 7.5x 24.0%<br />
8.3x 6.0x 27.9%<br />
Min 0.9x<br />
0.3%<br />
Reduction<br />
EV / 2015E Revenue<br />
Multiple as of 9/30/15<br />
Min 0.9x<br />
EV / 2016E Revenue<br />
Multiple as of 9/30/16<br />
12.9x 8.6x 33.0%<br />
6.4x 4.2x 33.6%<br />
7.1x 3.2x 55.2%<br />
10.9x 4.2x 61.0%<br />
68
Severe Decline In Correlation Of Value To Growth<br />
Public & M&A <strong>Market</strong>s Value Profit & Predictability Over Growth (Back to Basics). <br />
10.0x<br />
Palo Alto Networks<br />
$14,475 mn<br />
9.0x<br />
Proofpoint<br />
$3,146 mn<br />
EV / Revenue 2016E<br />
8.0x<br />
7.0x<br />
6.0x<br />
5.0x<br />
4.0x<br />
3.0x<br />
Symantec<br />
$15,623 mn<br />
Check Point<br />
$13,308 mn<br />
Imperva<br />
$1,752 mn<br />
Sophos<br />
$1,582 mn<br />
Barracuda Networks<br />
$1,328 mn<br />
FireEye<br />
$2,499 mn<br />
Qualys<br />
$1,351 mn<br />
TrendMicro<br />
$4,758 mn<br />
Mimecast<br />
$1,042 mn<br />
Fortinet<br />
$6,377 mn<br />
Cyberark<br />
$1,664 mn<br />
Splunk<br />
$7,895 mn<br />
Rapid7<br />
$742 mn<br />
2.0x<br />
F-Secure<br />
$592 mn<br />
SecureWorks<br />
$1,009 mn<br />
1.0x<br />
MobileIron<br />
$236 mn<br />
0.0x<br />
0% 5% 10% 15% 20% 25% 30% 35% 40%<br />
2015-16E Revenue Growth<br />
High Growth <strong>Cybersecurity</strong> Low Growth <strong>Cybersecurity</strong> R 2<br />
3Q16: 25.6%<br />
2Q16: 23.1%<br />
1Q16: 23.6%<br />
Note: Size of the bubble indicates <strong>Market</strong> Cap. In USD; <strong>Market</strong> data as of September 30, 2016.<br />
Source: Capital IQ.<br />
4Q15: 29.2%<br />
3Q15: 63.2% 2Q15: 68.4%<br />
69
Trading Multiples: High Growth & Low Growth<br />
Valuation Multiples For High Growth & Low Growth <strong>Cybersecurity</strong> Companies. <br />
8.6x 8.5x<br />
EV / 2016E Revenue<br />
EV / 2017E Revenue<br />
7.5x<br />
6.7x<br />
5.7x 5.7x Median: 5.7x<br />
4.2x<br />
4.2x<br />
6.9x<br />
6.0x<br />
Median: 3.3x<br />
3.6x 3.5x 3.4x 3.3x 3.2x 2.8x 2.8x 2.7x<br />
0.9x<br />
6.6x 6.5x<br />
5.9x 5.5x<br />
4.8x<br />
4.7x<br />
Median: 4.8x<br />
6.6x<br />
5.0x<br />
Median: 2.8x<br />
2.1x<br />
3.5x 3.4x<br />
1.8x<br />
3.2x 3.1x 3.1x 2.8x 2.8x 2.6x 2.6x 2.3x<br />
0.8x<br />
PANW PFPT SPLK CYBR MIME QLYS FTNT RPD SCWX CHKP IMPV SOPH BLOX CUDA SYMC FEYE TREND FSC1V VDSI MOBL<br />
PFPT PANW SPLK CYBR QLYS MIME FTNT RPD SCWX CHKP IMPV CUDA SOPH Blox SYMC FEYE FSC1V TREND VDSI MOBL<br />
2015-2016E Revenue Growth 2016-2017E Revenue Growth<br />
40% 38% 37% 37%<br />
32%<br />
Median: 32%<br />
32%<br />
29% 28% 27%<br />
23% 23%<br />
27% 25%<br />
21% 21%<br />
24%<br />
16%<br />
11% 10% 8% 7%<br />
Median: 7%<br />
7% 6% 6%<br />
Median: 23%<br />
20% 19% 19%<br />
20%<br />
17% 15% 15% 15% 15%<br />
Median: 15%<br />
11% 7% 7% 6% 6%<br />
RPD PANW SPLK PFPT CYBR FTNT SCWX MIME QLYS TREND FEYE CUDA FSC1V MOBL SOPH IMPV SYMC CHKP BLOX VDSI<br />
(3%)<br />
High Growth<br />
(13%)<br />
Source: Capital IQ, market data as of September 30, 2016.<br />
High Growth represented by companies with >20% revenue CAGR; Low Growth represented by companies with
Public Company Analysis: Trading Metrics<br />
High Growth & Low Growth <strong>Cybersecurity</strong>. <br />
Company Name<br />
Stock Price<br />
LTM Price<br />
Performance<br />
<strong>Market</strong> Cap<br />
($M)<br />
Enterprise<br />
Value ($M)<br />
2015-16E<br />
Revenue<br />
Growth<br />
2016E-17E<br />
Revenue<br />
Growth<br />
EV / Revenue EV / EBITDA P / E<br />
CY2016 CY2017 CY2016 CY2017 CY2016 CY2017<br />
High Growth <strong>Cybersecurity</strong> (>20% CAGR)<br />
Palo Alto Networks 159.33 (7.2%) 14,475 13,698 37.9% 32.0% 8.6x 6.5x 40.9x 26.8x 76.7x 48.4x<br />
Splunk 58.68 4.9% 7,895 6,874 36.8% 28.2% 7.5x 5.9x NM 52.6x NM NM<br />
Fortinet 36.93 (14.2%) 6,377 5,393 26.7% 18.9% 4.2x 3.5x 23.3x 18.5x 52.8x 42.2x<br />
Proofpoint 74.85 23.2% 3,146 3,090 36.8% 29.0% 8.5x 6.6x NM 70.5x NM NM<br />
CyberArk 49.57 (3.1%) 1,664 1,427 32.2% 22.5% 6.7x 5.5x 26.0x 21.4x 46.5x 38.6x<br />
Qualys 38.19 29.0% 1,351 1,137 20.6% 18.7% 5.7x 4.8x 17.7x 14.6x 48.5x 41.4x<br />
Mimecast* 19.13 91.3% 1,042 939 21.2% 22.6% 5.7x 4.7x NM 65.9x NM NM<br />
Secureworks* 12.51 (10.6%) 1,009 896 25.3% 19.5% 2.1x 1.8x NM NM NM NM<br />
Rapid7 17.65 (20.7%) 742 658 40.1% 26.6% 4.2x 3.4x NM NM NM NM<br />
Mean 30.8% 24.2% 5.9x 4.7x 27.0x 38.6x 56.1x 42.6x<br />
Median 32.2% 22.6% 5.7x 4.8x 24.7x 26.8x 50.6x 41.8x<br />
Low Growth <strong>Cybersecurity</strong> (
Public Company Analysis: Operating Metrics<br />
High Growth & Low Growth <strong>Cybersecurity</strong>. <br />
Company<br />
Revenue Revenue Growth (YoY%) EBITDA EBITDA Margin (%)<br />
2015A 2016E 2017E 15-'16 16-'17 2015A 2016E 2017E 2015A 2016E 2017E<br />
High Growth Security (>20% CAGR)<br />
Palo Alto Networks $1,150 $1,586 $2,093 37.9% 32.0% $213 $335 $512 19% 21% 24%<br />
Splunk 668 914 1,172 36.8% 28.2% 45 85 131 7% 9% 11%<br />
Fortinet 1,009 1,279 1,521 26.7% 18.9% 168 231 291 17% 18% 19%<br />
Proofpoint 265 363 468 36.8% 29.0% 5 25 44 2% 7% 9%<br />
CyberArk 161 213 260 32.2% 22.5% 45 55 67 28% 26% 26%<br />
Qualys 164 198 235 20.6% 18.7% 57 64 78 34% 32% 33%<br />
Mimecast 136 164 202 21.2% 22.6% NA 7 14 NA 4% 7%<br />
Secureworks 340 425 508 25.3% 19.5% NA (29) 1 NA (7%) 0%<br />
Rapid7 111 155 196 40.1% 26.6% (29) (32) (29) (26%) (21%) (15%)<br />
Low Growth Security (< 20% CAGR)<br />
Symantec $3,626 $3,847 $4,496 6.1% 16.9% $1,709 $1,234 $1,669 47% 32% 37%<br />
Check Point Software 1,630 1,725 1,826 5.8% 5.9% 938 946 1,003 58% 55% 55%<br />
Trend Micro 1,034 1,278 1,375 23.6% 7.6% 322 389 424 31% 30% 31%<br />
FireEye 623 722 832 15.8% 15.3% (172) (91) 25 (28%) (13%) 3%<br />
Sophos 472 507 582 7.4% 14.8% NA 70 84 NA 14% 14%<br />
Imperva 234 250 301 6.6% 20.3% 9 (18) (2) 4% (7%) (1%)<br />
Infoblox 355 344 393 (3.2%) 14.5% 52 60 76 15% 17% 19%<br />
Barracuda Networks 309 341 362 10.5% 6.2% 64 62 69 21% 18% 19%<br />
VDSI 241 210 242 (13.0%) 15.3% 57 33 47 24% 16% 19%<br />
F-Secure 160 177 189 10.4% 6.8% 31 27 33 19% 15% 18%<br />
MobileIron 149 161 179 7.9% 11.0% (52) (33) (16) (35%) (21%) (9%)<br />
Note: NA – Not Available; market data as of September 30, 2016.<br />
Source: Capital IQ.<br />
72
15 <br />
Advise. Network. Invest.<br />
Momentum Partners, LLC<br />
Momentum Capital <strong>Market</strong>s, LLC<br />
340 Brannan Street | Suite 501<br />
San Francisco, California 94107<br />
Michael Tedesco<br />
Executive Chairman<br />
michael@wellspring.partners<br />
Eric McAlpine<br />
Managing Partner<br />
eric@momentum.partners<br />
Petros Kitsos<br />
Senior Advisor<br />
petros@momentum.partners<br />
Timothy Lipton<br />
Partner<br />
tim@momentum.partners<br />
Keith Skirbe<br />
Director<br />
keith@momentum.partners<br />
Dino Boukouris<br />
Director<br />
dino@momentum.partners<br />
*Securities offered through Momentum Capital <strong>Market</strong>s, LLC, a division of Financial Telesis Inc. Member FINRA/SIPC.