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lessons from cybersecurity exits – techcrunch

lessons from cybersecurity exits – techcrunch News Article With The full text news. The Resource Link is down the post and you can View this News Article in the source page.



lessons from cybersecurity exits – techcrunch

dear f0und3r:what a month this has been for cybersecurity! one unicorn ipo and two nice acquisitions – zscaler’s great debut on wall street,  a $300 million acquisition of evident.io by palo alto networks and a $350 million acquisition of phantom cyber by splunk has gotten all of us excited.word on the street is that in each of those exits, the founders took home ~30% to 40% of the proceeds. which is not bad for ~ 4 /5 years of work. they can finally afford to buy two bedroom homes in silicon valley.my math is not that good but looks like even some vcs made a decent return. back of the envelope scribbles indicate that true ventures scored an estimated ~44x multiple on its seed investment. others like bain snagged a ~10x on the a round investment and venrock which led the series b round took home ~6x.we see a similar pattern with phantom cyber, which got acquired by splunk for $350 million. a little bird told me that they had booking in the range of $10 million. but before we all get too self-congratulatory, lets ask – why did these companies sell at $300 million to $350 million when everyone in the valley wants to ride a unicorn? clearly, funds like gv, bain and kleiner could have fueled more rounds to make unicorns out of evident.io and phantom cyber.(data source: pitchbook)some of the board members might have peeked at the exit data gathered by the hardworking analysts at momentum cyber, a cybersecurity advisory firm. look at security exit trends from 2010-2017. you ...