Cybersecurity Market Review Q3 2016 Advisors & Dealmakers In Cybersecurity
• Momentum Capital Markets
About Momentum Partners
Momentum Partners Advisors & Dealmakers In Cybersecurity. Why Momentum Partners?
Momentum’s Senior Cybersecurity Team
Momentum Partners is a boutique Cybersecurity focused advisory investment bank based in Silicon Valley with operations globally. We employ a high-touch advisory model specifically designed to serve Founders/CEOs and their Boards – Series A to exit – where we are relentless in our pursuit for better outcomes for our clients. As advisors and dealmakers for two decades, we have closed over 200 deals totaling $200 Billion in value.
Cybersecurity Enterprise IT Cloud & SaaS Defense & Government Mergers & Acquisitions* Corporate Development
200+ Deals CLIENT
Founder Strategic and Capital Markets Advisor to CEOs, Founders & Boards
Founder Senior Advisor Cybersecurity Lead
Petros Kitsos Senior Advisor
Timothy Lipton Partner Founder Start-Up Advisor iCFO
Keith Skirbe Director
Eric McAlpine Managing Partner
Strategic Advisor Direct Investor and Board Member Deep Defense & Aerospace Expertise
Dino Boukouris Director
Strategic Advisor Mergers & Acquisitions Deep Cybersecurity Expertise
$200+ Billion CLIENT
Michael Tedesco Executive Chairman
Strategic Advisor Start-up Advisor VC & Private Equity CLIENT
Q3 2016: Market Update And Observations The Emergence of Private Equity Firms Have Significantly Increased Strategic Activity In 3Q16.
Exits: M&A & IPO Activity
Valuations increased across the board during Q3, driven by our High Growth Cybersecurity comps which were +21%. Our Low Growth Cybersecurity comps were +10%, relative to the NASDAQ which was +10%, the S&P 500 which was +3% and the HACK index which was +17% Valuations have rerated over the last 12 months, but were buoyed by a strong Q3. Median forward multiples are down 34% compared to down 50% at the end of Q2. Notables include Rapid7, FireEye and Fortinet whose forward multiples are down 61%, 55% and 34%, respectively Cybersecurity M&A activity through 3Q16 reached record levels of $14.3B; total announced M&A volume in 3Q16 totaled $7.6B and 31 Deals There were several notable M&A transactions led by PE buyers: Vista Equity acquired Infoblox for $1.3B, TPG acquired McAfee for $4.2B and Thoma Bravo acquired Imprivata for $488M Carbon Black confidentially filed for its IPO with the SEC. Optiv, Tanium, Forescout, Veracode and Tenable Network Security are all eyeing an IPO exit over the next 12 – 18 months Q3 saw an increase in large fundraising rounds – there were 5 deals of $50M+, led by StackPath’s $180M investment from Abry Partners, and 10 deals between $25M-$50M 3Q16 saw funding volume total $1.3B across 80 deals, a record number of deals and the second largest funding volume since 2010; fundraising volume YTD has already exceeded 2015 60% of deals were early stage (Seed – Series A) with a median amount raised of $4.5M; the remainder consisted of late stage (Series B+) with a median amount raised of $20.6M Private Equity ‘s Cybersecurity: 7 deals in the sector in 2016 representing a total of $8.0B in enterprise value have included Private Equity on one side or the other, led by TPG’s acquisition of