At a glance.
- Zscaler acquiring Canonic Security.
- Sandbox AQ raises $500 million in funding.
- Executive moves.
- Company news.
- Labor markets.
Mergers and acquisitions.
San Jose-based cloud security company Zscaler is acquiring Israeli Canonic Security to fight growing risks of SaaS supply chain attacks. The acquisition will allow Zscaler to integrate Canonic's supply chain security capabilities into its data protection solutions. “The addition of Canonic augments our CASB and SSPM capabilities and further strengthens the growing set of services on the Zscaler Zero Trust Exchange, the world’s largest cloud security platform, and provides our customers with unprecedented visibility and security of their SaaS applications. I am pleased to welcome the Canonic team to the Zscaler family as we execute on our vision to advance SaaS security,” said Zscaler CEO, Jay Chaudhry.
New York-headquartered Accenture has acquired Brazilian cyber defense and risk management company Morphus. “The acquisition brings more than 230 highly skilled professionals, making Accenture one of the largest cybersecurity professional services providers in Brazil. Our clients are always looking for the best solutions to strengthen their cyber defenses, and the addition of Morphus expands our global research workforce and network of talented, innovative security professionals," said Accenture leader, Paolo Dal Cin.
LinQuest Corporation, a Virginia-headquartered systems engineering company, has announced their acquisition of Capability Analysis & Measurement Organization, LLC (CAMO), a U.S. Special Operations Command (USSOCOM) and DoD research, development, test, and evaluation (RDT&E) program provider. “CAMO’s experience, leaders, and subject matter experts design, integrate, test, and rapidly field technologies that are creating new possibilities for ground, air, and space forces,” said Greg Young, President and CEO of LinQuest. “Together with the CAMO team we will enable our customers to stay ahead of adversaries’ strategies and support customers’ efforts in bolstering our national security.”
SaaS analytics platform Sumo Logic, based in California, has entered into an agreement to be acquired by Francisco Partners' affiliates for $1.7 billion. "Since founding Sumo Logic in 2010, we have created a trusted, cloud-native, SaaS analytics platform for observability and security, enabling our customers to transform complexity into insights and accelerate their cloud transformation adoption," said Ramin Sayar, President and CEO of Sumo Logic. "Today's announcement represents a compelling outcome for our stockholders. We are delighted at the prospect of partnering with Francisco Partners in the next phase of Sumo Logic's journey."
Investments and exits.
Sandbox AQ, an Alphabet Inc. spinoff company specializing quantum computing, has closed a $500 million funding round, with participation from Breyer Capital, T. Rowe Price funds, and TIME Ventures. “While there have been suggestions that some quantum hardware startups might be struggling, Sandbox AQ goes and lands $500 million in funding,” said Holger Mueller of Constellation Research Inc. “That’s because it’s focused on quantum software solutions, providing encryption that’s safe in case quantum computers ever manage to break the encryption we have now. On the other hand, Sandbox AQ is also ahead of the curve with its quantum simulation offerings, so it’s no surprise investors are willing to put big money into a company that hedges is bets on both sides of the wave.”
MDR security provider Deepwatch has raised $180 million in equity investments and strategic financing from Springcoast Capital Partners, Splunk Ventures and Vista Credit Partners. The funding will be used for product acceleration and development, as well as partner ecosystem expansion to meet growing demand. “Our services have never been more vital,” said Deepwatch CEO, Charlie Thomas. “Business transformation to cloud and digital, coupled with increasing levels of cyber risk drives strong demand for advanced protection from Deepwatch. We are excited to partner with Springcoast Capital Partners, Splunk and Vista Credit Partners to advance our mission to protect the digital economy and defend against the increasing volume and complexity of cyber threats.”
Descope, a California-based authentication and user management platform provider, has emerged from stealth with $53 million in seed funding, led by Lightspeed Venture Partners and GGV Capital, with participation from Unusual Ventures, Dell Technologies Capital, Cerca Partners, Tech Aviv, J Ventures, and Silicon Valley CISO Investments (SVCI), as well as angel investors. “What my founding team and I have learned from years of experience is that authentication is never finished for any application,” said Co-Founder and CEO of Descope, Slavik Markovich. “We have built authentication and user management in-house for both business and consumer apps in our past lives. Every time, what started out as a sprint line item turned into a multi-year investment, taking our focus away from what we were meant to do. Our vision is to “de-scope” authentication from every app developer’s daily work, so they can focus on business-critical initiatives without worrying about building, maintaining, or updating authentication.”
California-based late-stage security analytics startup Skybox Security has raised $50 million in a financing round, which Skybox said included investors such as CVC Growth Funds, Pantheon, and J.P. Morgan. The company plans to find revenues in their Skybox Cloud Edition offering with this funding round.
Coincover, a United Kingdom-based digital asset protection company, has raised $30 million in a funding round led by Foundation Capital. The funding is planned to be used for recruitment of talent, updating products, and adding partnerships, with CEO David Janczewski noting, “We’ve reached an inflection point in the industry; as a result, we’ve seen demand for our product increase dramatically.”
Israeli runtime application security and observability solution provider Oligo Security has exited stealth, raising $28 million in funding, with participation from Lightspeed Venture Partners, Ballistic Ventures, TLV Partners, and angel investors. Their solution is intended to allow "enterprises to detect and prevent open source code vulnerabilities in their applications without affecting performance," the company says.
San Francisco-headquartered security awareness training startup Riot Security has raised $12 million in Series A funding, led by Base10, a San Francisco-based VC fund, with participation from Y Combinator, Funders Club and Founders Future, as well as angel investors. The company provides personalized security awareness programs for workplaces to keep cybersecurity training in focus for employees.
VulnCheck, a Massachusetts-based vulnerability intelligence startup, has raised $3.2 million in seed funding, led by Sorensen Ventures, with included equity stakes for In-Q-Tel, Lux Capital, and Aviso Ventures. Security Week describes VulnCheck's tech as promising "exploit intelligence for vulnerability prioritization and an early-warning system for in-the-wild software exploitation activity."
Castellum, Inc., a defense technology company based in Maryland, has raised $500,000 of equity financing, reduced its debt by $50,000, and extended the maturity date of $840,000 of debt previously due in April 2023 to February 2024 in transactions with New York-based investment firm, the Crom Cortana Fund. “Castellum continues to execute their buy-and-build business plan and we are excited to be their financial partner as they target their robust acquisition pipeline,” said Liam Sherif, General Partner of Crom Cortana. “The continued accretive acquisitions and contract backlog provide strong revenue visibility, while this pending acquisition continues to grow their cybersecurity business with the Navy.”
Dragos has appointed Kurt Gaudette as the company's new Vice President of Global Threat Intelligence.
The Identity Defined Security Alliance (IDSA) has named Jeff Reich as its new Executive Director. A new Executive Advisory Board has been elected as well, including:
- Allen Moffett, Global IAM Program Lead and CTO at Atos
- Morey Haber, CSO at BeyondTrust
- Joanne Wu, VP Business Development at CyberArk
- Stephen Lee, VP Technical Strategy and Partnerships at Okta
- Julie Talbot-Hubbard, SVP and GM, Cyber Protection and Identity at Optiv
- Aubrey Turner, Executive Advisor at Ping Identity
- Mike Kiser, Director of Strategy and Standards SailPoint
- Ravi Erukulla, VP Analyst Relations and Customer Advocacy at Saviynt
- Rahul Parwani, Director of Product Management at VMware
CrowdStrike has promoted Michael Sentonas to the position of President.
Huawei will add Meng Wanzhou as the company's rotating chairperson on April 1.
Paladin Capital Group has named James Langevin to its Strategic Advisory Board.
DirectDefense has promoted Christopher Walcutt to the position of Chief Security Officer.
Vaultree has appointed Rinki Sethi to the company's Board of Directors.
Gigamon has appointed Dee Dee Acquista as the company's Vice President of Worldwide Channel and Alliances.
Mitiga has welcomed John Watters as an independent board member.
Brinqa has made two new executive appointments: Mayuresh Ektare as the company's Senior Vice President of Product Management, and Dimitri Vlachos as the company's Chief Marketing Officer.
SpyCloud has named Ronak Patel as the company's Chief Technology Officer, and Heather Smith as SpyCloud's Chief Marketing Officer.
Red Sift has named David Bennett as the company's new Chief Revenue Officer.
Palantir Technologies is predicting its first profitable year this year, Reuters reported on Monday. This forecast follows the company's moves to slow hiring, cut stock-based payouts, and reduce cloud computing investment costs. Palantir's finance chief, David Glazer, said "As we look ahead to 2023, we will continue to exercise spend discipline ... pace hiring while continuing to invest in high priority areas, including in our product offerings, building out our go-to-market strategy and technical roles."
Layoffs continue to plague the cyber and big tech industries into this week. Computing reported yesterday that quantum startup Rigetti is slashing 28% of their staff, citing a focus on "nearer-term priorities." Microsoft reportedly laid off LinkedIn recruiting staff on Monday, according to the Information. SAP is laying off 224 employees in its Bay Area location, the Silicon Valley Business Journal reports. Dell Technologies-owned Secureworks is cutting almost 10% of its workforce, or about 200 jobs, in the name of "shifting investments," CRN wrote Monday. Microsoft reduced its teams working on Surface devices, HoloLens mixed reality hardware, and Xbox, Bloomberg recounts.
Google has also reportedly given another reason for former employees to be less than thrilled with their former employer; the severance package the company promised to 12,000 employees that were cut in late January "incorrectly calculated the number of the stock grants many of them would receive," the Information divulged, disclosing that some employees may now be seeing tens, or even hundreds of thousands of dollars less than they were promised in a prior communication from the company.