Page 66 - CDM-Cyber-Warnings-March-2014

Early-stage funding for the sector soared by almost 60% last year to $244 million worldwide, according to data from research group PrivCo. The number of deals rose even faster, up more than 100% YoY to more than one a week. The average valuation for each VC round raised last year rose by 41%to $31.5 million, after an increase of 26%from 2011 to 2012. The valuation of these cybersecurity companies may also be rising in anticipation of a deal- making boom. Most of the new startups are expected to eventually be snapped up by the larger technology companies. So if Symantec and McAfee aren’t going to lead the wave of acquisitions in cybersecurity, who is? Because of the intense interest in security, companies like Cisco see new revenue opportunities in this area. Cisco acquired Sourcefire in July 2013 for $2.7 billion and has stated it is seeking other security acquisitions. Google just recently acquired SlickLogin, an Israeli start-up company that develops sound-based password alternatives, for an undisclosed amount, and Bangalore based startup Imperium, a developer of anti-spam technology, for $9 million. Dell bought SonicWall for $1.2 billion in 2012. Microsoft’s last security acquisition was in October 2012 when it bought PhoneFactor, a two- factor authentication system, for an undisclosed amount. Twitter bought Dasient, a provider of cloud-based anti-malware services, in January 2012 also for an undisclosed amount. However, " # % " $ " # ! !