At a glance.
- Tesserent to acquire Loop Secure.
- Upstream raises $62 million in Series C round.
- Thoughts on the cybersecurity labor market.
Mergers and acquisitions.
Australian cybersecurity firm Tesserent will acquire Sydney-headquartered governance, risk, and compliance firm Loop Secure, ARN reports. Geoff Lord, Tesserent’s chairman, stated, "The addition of Loop Secure to the [Tesserent] group is a welcome one, cementing our position as the leading ASX-listed provider of cybersecurity solutions and services in A/NZ and as well as contributing to our annual turnover and adding significant recurring revenue to the Group."
Amsterdam-headquartered Elastic NV (formerly known as Elasticsearch) has acquired Tel Aviv- and California-based authorization policy management platform provider build.security. The company stated, "The addition of build.security extends Limitless XDR to enable the enforcement of security actions for cloud-native environments including hosts, virtual machines, and containers orchestrated by Kubernetes. By integrating the build.security technology into Elastic Security, customers will be able to continuously monitor and ensure that their cloud environments are secure in keeping with the policies they have in place, as well as continuously validate their security posture against well established standards such as the Center for Internet Security (CIS) benchmarks."
UK-headquartered data analytics consultancy Simpson Associates has acquired cybercrime prevention firm Bleam Cyber Security Limited (also based in the UK). The company stated, "Bleam Cyber Security will continue to operate as a separate division of Simpson Associates. Investment will be made through the development of additional cyber security propositions and the division will be launching a series of Managed Security Services, including Managed Detection and Response, that will complement the Managed Data Services that Simpson Associates already provides."
Sedulous Consulting Services has acquired program management and technical support consulting company Infinity Support Services. Both companies are based in Virginia. Omar Dennis, the founder, president, and CEO of Sedulous Consulting Services, stated "We're at the sweet spot of innovation and growth within the public sector, as more governments and companies seek out our help, especially in cybersecurity."
Australian managed IT services provider Nexon Asia Pacific has acquired Brisbane-based cybersecurity company Equate Technologies, CRN reports. Nexon Asia Pacific's CEO Barry Assaf stated, "Equate Technologies augments our offering and capability to deliver scalable, end-to-end proactive cyber security services as part of our comprehensive advisory and managed services. Our customers will now have a specialist security provider that satisfies all their cybersecurity needs and access to a proliferation of local expertise."
Investments and exits.
Israeli automotive cybersecurity company Upstream has raised $62 million in a Series C round led by Mitsui Sumitomo Insurance (MSI), with participation from I.D.I. Insurance, 57 Stars' NextGen Mobility Fund, La Maison Partners, and existing investors Glilot Capital, Salesforce Ventures, Volvo Group Venture Capital, Nationwide, Delek US. The company stated, "The new investment will boost Upstream's growth and reinforce its leadership in the connected vehicle cybersecurity market, while expanding its offering to current and future customers in the areas of data analytics, insurance telematics, predictive analytics, and business intelligence. In addition, the company will continue to invest in identifying, attracting, recruiting, and maintaining top talent."
Tel Aviv- and Boston-headquartered XDR provider Hunters has raised $30 million in a Series B round led by Bessemer Venture Partners, with participation from existing investors YL Ventures, Blumberg Capital, M12, and U.S. Venture Partners (USVP). The company's CEO and co-founder Uri May stated, "The investment will be used to further drive innovation, enhance our customer satisfaction, increase our market reach, support partner expansion and hire exceptional talent."
Blockchain security firm CertiK has raised $24 million in a Series B+ round led by Tiger Global and GL Ventures. The company stated, "This funding round complements the launch of Skynet Premium and follows on the heels of the $37M Series B announced in July, which brought on Coatue Management, Shunwei Capital, and Coinbase Ventures."
Ann Arbor, Michigan-based cybersecurity monitoring and response company Blumira has raised $10.3 million in a Series A round led by Mercury, with participation from Ten Eleven Ventures, M25, and Array Ventures. According to VentureBeat, the funding "will be used to grow the company’s security information and event management platform and double the size of its team to 80 employees within the next year."
BreachQuest has raised $4.4 million in a seed funding round led by Slow Ventures, Tinder founders Sean Rad and Justin Mateen, and Lookout founder Kevin Mahaffey. The company stated, "The funding will be used to accelerate the development and rollout of its innovative PRIORI platform."
BlueVoyant has hired Paul Kleinschnitz as Chief Commercial Officer and Jason Thompson as Chief Marketing Officer. Kleinschnitz most recently served as Chief Sales Officer at Coalfire, while Thompson previously served as Chief Marketing Officer and Chief Operating Officer at IntSights.
Companies in the news.
Momentum Cyber has released its Cybersecurity Market Review for H1 2021, finding that "[s]trategic activity in the first half of 2021 smashed all previous records and included 593 transactions completed totaling $51.0B in deal value across M&A (163 transactions, $39.5B) and Financing (430 transactions, $11.5B)."
Team8's Nadav Zafrir and NightDragon's Dave DeWalt offered some thoughts on the cybersecurity labor market during an online media availability yesterday. Asked whether the much discussed talent gap in cybersecurity were real, DeWalt answered immediately that, “100% the talent gap exists.” He sees a kind of "poverty line" in the sector. Solid talent circulates through different roles at the top of different organizations, but the gap really becomes evident when you look at vulnerable organizations who can barely afford an IT person: they're unlikely to be able to afford a security person. "The talent is there, but matchmaking is a bit of a challenge," he said, and he thought that the gap tended to open between what formal education prepared students for and the actual cybersecurity roles organizations needed to fill. "There’s a gap between education and employment."
Zafrir agreed, and offered the example of Israeli national service as a possible approach to closing the gap. When Israel's Unit 8200 understood that it couldn’t rely only on universities for talent, it turned to mandatory service. "Every boy and girl out of high school must serve in the military." Unit 8200 sought to screen high school sophomores for aptitude to learn cyber rapidly. "And if you can spot that aptitude for quick learning and move it into a training program designed for them, you can do in six months what it would otherwise take you six years to achieve."