Analyst Take: In Q1 2024, the California Court of Appeal overruled a June 2023 Superior Court ruling to delay the enforcement of the CPRA. New Jersey and New Hampshire added to the tally of US states with comprehensive privacy regulation, while enforcement actions continued with several notable companies being slapped with multi-million-dollar fines for non-compliance.
Analyst Take: Cybersecurity funding in Q1 2024 was mostly driven by large deals of over USD 100 million each, reminiscent of multiple megadeals seen in previous years, though total funding still fell short of 2022 levels. Funding by value saw a dip compared with Q1 2023 but grew compared with last quarter and average deal sizes remained fairly level YoY, driven by an increase in the frequency of growth funding rounds.
Analyst Take: In the Next-gen Cybersecurity space, the primary focus appears to have shifted from generative AI (GenAI) integrations to SASE products, including the combination of various disparate solutions into a single-vendor offering. Organizations in this industry also worked to expand the reach of their solutions across new environments and customer categories. Cyber insurance companies focused on cyber risk management and digital privacy tools product launches varied in functionality.
Analyst Take: Partnership activity across the Cybersecurity vertical was up slightly compared with the previous quarter. Big Tech took a step back in terms of partnerships, while established disruptors such as CrowdStrike and SentinelOne demonstrated heightened activity. In terms of scope, we saw variation in intent, ranging from expanding market reach to combining and simplifying product offerings.
Analyst Take: M&A news in Q1 2024 was dominated by Cohesity’s announcement of its plans to acquire Veritas’ data protection arm to create a combined company worth USD 7 billion. This is the largest M&A transaction we have observed since Q3 2023 though far from the likes of the USD 28 billion Cisco-Splunk deal that quarter. Other significant news included ZeroFox announcing it would soon go private and several significant acquisitions by major players in the Cybersecurity vertical, including Wiz, Zscaler, CrowdStrike, and SentinelOne.
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