Size of Early Stage Cyber Deals Continues to Surge: DataTribe

Size of Early Stage Cyber Deals Continues to Surge: DataTribe


Early-stage cybersecurity agreements continue to rise in terms of valuation and round size, and cybersecurity may be more resilient to economic conditions compared to other verticals, said the cybersecurity venture capital firm and data incubator DataTribe in the his latest report Insights.

According to the Washington, DC-based company, the volume of seed and Series A funding rounds in the cybersecurity sector has remained stable during the first quarter of 2021.

While the economic downturn has had some impact on the overall volume of agreements on all verticals, cyber bidding is expected to be more resilient.

DataTribe reported that the size of cyber seed offerings has increased 87% year-over-year (from $ 2.7 million in the first quarter of 2021 to $ 5 million in the first quarter of 2022) and 35% for Series A bids ($ 10 million in the first quarter of 2021 to $ 13.5 million in the first quarter of 2022). In terms of valuations, they increased 133% for seed bids (from $ 7.7 million to $ 18 million) and 59% for Series A bids (from $ 28.3 million). $ 45 million).

Cybersecurity funding in the first quarter of 2022

Valuations and bid sizes in all verticals are expected to decline if the economic downturn continues, but again, cybersecurity is expected to be more resilient, driven by cybercrime and the cyberspace component of global conflicts.

[READ: M&A Activity to Continue; Growth Funding to be More Conservative]

The DataTribe report also summarizes the impact of the Ukrainian war on software and computer development teams. According to some estimates, the war has caused 200,000 engineers in Ukraine, Russia and Belarus to be affected by the conflict, and another 300,000 in Ukraine are expected to be affected by the conflict in the future.

“Companies and ISVs are struggling to fill their offshore teams across other regions such as India and Latin America. new projects or expanding equipment, “said DataTribe. “This shift in talent is likely to have an impact on all phases of software development for all sizes of organizations. Since outsourcing, in particular, is more affordable and flexible than hiring employees, ‘start will slow down’.

The DataTribe report also provides information on infringement and attack simulation (BAS) systems, software materials billing (SBOM), small and medium business cybersecurity (SMB), and impact. positive of the new federal regulations on cyber preparedness.

Related: Risk intelligence company Strider raises $ 45 million

Related: Enveil Bags Technology Startup Improves $ 25 Million Investment Privacy

Related: Initial phase investment in cybersecurity shows signs of stabilization

Related: Impact of coronavirus outbreak on initial investment in cybersecurity

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Eduard Kovacs (@EduardKovacs) is a contributing editor of SecurityWeek. He worked as a high school computer science teacher for two years before starting a career in journalism as a Softpedia security news reporter. Eduard has a degree in industrial computer science and a master’s degree in computer technology applied to electrical engineering.

Previous columns by Eduard Kovacs:
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