At a glance.
- Team8 launches venture capital arm.
- Shadowserver is on stable ground, for now.
- Investment activity continues, albeit at a slower, more cautious pace.
Mergers and acquisitions.
Thoma Bravo has announced it will acquire Virginia-headquartered secure cloud-based collaboration company Exostar. Terms of the transaction weren't disclosed, but the Wall Street Journal says the deal is valued at around $100 million. Thoma Bravo says the "strategic investment is expected to help Exostar accelerate business growth and broaden its existing customer base....Thoma Bravo plans to leverage its expertise in enterprise software solutions for complex industries to partner with Exostar's existing management to further develop and expand the company's current capabilities, particularly in cybersecurity, to position the company for further growth."
San Jose, California-based cloud security firm Zscaler has acquired Massachusetts-based zero-trust security company Edgewise Networks for an undisclosed amount. Zscaler says "Edgewise broadens the Zscaler cloud-native platform and secures application-to-application communication to deliver stronger security in public clouds and data centers."
Washington, DC-headquartered privileged access management company Thycotic has acquired Hayward, California-based access control provider Onion ID. Thycotic's press release states, "With the acquisition, Thycotic adds three new products to its PAM portfolio: Thycotic Remote Access Controller, Thycotic Cloud Access Controller and Thycotic Database Access Controller. This acquisition extends Thycotic's industry leadership for emerging PAM use cases protecting access to SaaS applications, IaaS infrastructure, and ensuring remote workers stay productive and secure."
Seattle-based network security vendor WatchGuard Technologies has acquired Spanish antivirus company Panda Security. WatchGuard's press release states, "The immediate focus of the combined company is to provide partners and customers from both companies access to the newly expanded portfolio of security solutions....WatchGuard resellers will enjoy immediate access to Panda Adaptive Defense 360, which includes both endpoint protection platform (EPP) and endpoint detection and response (EDR) capabilities, and Advanced Reporting Tool products via the Panda Security Early Access Program launching on June 1, 2020. This new program will put these exciting new products into the hands of WatchGuard partners quickly for training and internal deployment, as well as resale to end users."
San Jose, California-headquartered Cisco has announced that it will acquire San Francisco-based network intelligence company ThousandEyes. Bloomberg reports that Cisco will pay close to $1 billion for the company. Cisco stated, "By bringing together Cisco's strength in network and application performance with ThousandEyes' visibility into the Internet, customers will now have an end-to-end view into the digital delivery of applications and services over the Internet, allowing them to pinpoint deficiencies and improve network and application performance across enterprise and cloud networks."
Apple has acquired Ontario, Canada-based machine-learning startup Inductiv for an undisclosed amount, according to Bloomberg. Apple confirmed the purchase and said it "buys smaller technology companies from time to time and we generally do not discuss our purpose or plans," but Bloomberg reports that Inductiv's engineering team will be working on Siri.
Investments and exits.
TechCrunch reports that Israeli cybersecurity company foundry Team8 has raised $104 million to launch its own venture capital arm, Team8 Capital, which will participate in Seed, A, and B funding rounds for cybersecurity, AI, data science, and enterprise startups. TechCrunch says the company will be receiving more funding for the VC arm in the coming weeks.
Oregon-based e-commerce fraud prevention company Vesta has secured $125 million in growth capital from Goldfinch Partners. The company says the funding "will provide Vesta with the resources to invest in growth and continue the global deployment of its fraud protection and e-commerce payment solutions."
Silicon Valley-headquartered crowdsourced penetration testing platform provider Synack has raised $52 million in a Series D round co-led by B Capital Group and C5 Capital, with participation from existing investors GGV Capital, GV, Hewlett Packard Enterprise, Icon Ventures, Intel Capital, Kleiner Perkins, M12, and Singtel Innov8. The funding "will allow Synack to invest even more in the SRT community, further advance its SmartScan® technology that continuously monitors for vulnerabilities and enhance data analytics and research to demonstrate the value of Synack’s hacker-driven approach." The company will also use the money to continue its international expansion.
Berkeley, California-based SaaS web development framework provider Gatsby has raised $28 million in a Series B round led by Index Ventures, with participation from existing investors CRV and Trinity Ventures. Gatsby's CEO and co-founder Kyle Matthews said, "This funding will help us expand our product capabilities so we can become the way to build the web for everyone. We can't wait until everything from personal portfolios to the largest sites on the web are powered by Gatsby."
San Francisco-based digital risk management firm RiskIQ has raised $15 million in a Series D round led by National Grid Partners, the venture capital arm of London-based multinational energy company National Grid. RiskIQ plans to use the funding to "bring its attack surface management, threat detection, and unique threat hunting capabilities to critical infrastructure industries." National Grid Partners will also provide RiskIQ with "ongoing strategic and tactical advice and guidance to RiskIQ as the company penetrates deeper into the infrastructure, manufacturing, and utility markets."
Connecticut-based data discovery and privacy company 1touch.io has raised $14 million in a Series A round led by National Grid Partners and Jerusalem Venture Partners, with participation from Connecticut Innovations, Mindset Ventures, and Ocean Azul Partners. 1touch.io will use the funding "to increase the company’s RD and field presence." National Grid Partners's Vice President Pradeep Tagare will join 1touch.io's board of directors.
San Francisco-headquartered security assurance platform provider Tugboat Logic has raised $8 million in a funding round led by Inovia Capital, with participation from Westwave Capital and individual investors including Tom Noonan and Terry Dolce.
Quarles & Brady LLP has added Hilary Lane and Greg Leighton as partners and Bari Nathan as an associate. Lane was previously Chief Privacy Officer for NBCUniversal, while Leighton and Nathan both previously worked for Neal, Gerber & Eisenberg LLP.
BitSight has hired Tim Adams as Chief Financial Officer and Jay Roxe as Chief Marketing Officer. Adams was most recently CFO at ObsEva, while Roxe has previously served as Vice President of Product Marketing, Adoption, and Operations at athenahealth.
Security companies in the news.
WIRED reports that Trend Micro has pledged to give $600,000 to the not-for-profit Internet security organization Shadowserver over the next three years. The Internet Society will also donate $400,000 to the organization. Cisco had been Shadowserver's primary sponsor for more than fifteen years, but the company announced in February that it had to withdraw its funding. Shadowserver has now secured enough substantial donations to ensure its survival in the short-term, but it's still seeking recurring donations to sustain its budget in the future.
The Wall Street Journal reports that cybersecurity startups are feeling the effects of the pandemic as potential customers and investors have grown more cautious with their funds, but investments are continuing. Sean Cunningham, managing director of ForgePoint Capital Management, told the Journal, "Companies that are getting funded are the same companies that would have got funded four months ago. There’s a small downtick in valuation, but we are not investing in the companies because they’re a good bargain today that we wouldn’t have invested in four months ago."