Following the COVID-19 pandemic, we continue to see more companies using applications deployed on the cloud and an increasing need for cloud security and zero-trust network access solutions. Expansion of attack surfaces, sophisticated ransomware attacks and publicised security incidents continue to accelerate demand for next-gen security and proactive risk management
Q3 finished strongly with 55 transactions, up 10% from Q2, and the highest quarterly total in the ten years we have tracked this market. We expect this strong momentum to continue for the duration of 2021. This quarter, Results has acted as exclusive financial advisor to Outpost24, a Swedish-based provider of full stack cyber assessment, on its acquisition of Blueliv, a cyber threat intelligence provider headquartered in Spain
Both public and private market appetite remains very strong
IPO activity remains strong with ForgeRock (identity and access management), Exclusive Networks (multi-service cyber and cloud-computing provider) and Riskified (fraud and chargeback prevention) going public in Q3 2021
NortonLifeLock’s $7.8Bn acquisition of Avast, a global leader in digital security and privacy, provides an attractive consolidation opportunity and the creation of a new, industry-leading Cyber Safety business that will serve 500 million users
This quarter, Thoma Bravo backed Sophos has also accelerated strategic acquisition opportunities in emerging technologies by acquiring Refactr IT (security orchestration automation and response), Capsule8 (cloud and endpoint security) and Braintrace (network detection and response)
Cybersecurity fundraising continues to surge in 2021 with a similar, aggressive appetite for category-changing companies:
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Aviatrix’s $200m Series E investment, at a $2Bn valuation, will allow it to scale worldwide sales and support operations, and establish itself as mission critical in enterprise organisations. Arctic Wolf has achieved a $4.3Bn valuation with its recent Series F fundraising of $150m, and continues to accelerate its market momentum and bringing new products to market
Cybersecurity, from growth equity raises to strategic exits, continues to generate great interest, making now an excellent time to be contemplating a fundraising, exit or growth through acquisition in the cybersecurity space