Cyber deals fall in 2022

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Research highlight

Cybersecurity deal activity (excl. US) declined 6% in 2022 whilst investment increased 15%

? Overall, there were 291 CyberTech deals announced outside the US in 2022, a 4% decline from 2021

? CyberTech companies headquartered outside the US raised a combined $3.9bn in 2022, 15% higher than 2021 levels

? Israel was the most active CyberTech country in 2022, outside the US, with 64 deals

?CyberTech deal activity declined slightly in 2022 by 4% with companies based outside the United States completing 291 deals in total. Despite the drop in deal activity, investment saw a substantial 15% increase to $3.9bn defying global trends. Notably European (not including Israel) CyberTech deal activity saw a 25% drop from 2021 levels indicating a lack in innovation compared to other regions.

1password, a password management solution, was the largest CyberTech deal in 2022, raising $620m in their latest Series C funding round, led by ICONIQ Growth. After their latest funding 1password is valued at $6.8bn. Since its latest funding round in July 2021, 1password has increased its paying business customer base from 90,000 to more than 100,000 — adding big-name corporate subscribers including Datadog, Intercom and Snowflake — and has grown its internal headcount from 475 to 570 employees. This, the company says, has been driven by three things: the continuation of remote and hybrid working, the rapid adoption of cloud apps and the acceleration of work-related burnout.

Israel was the second most active CyberTech country in 2022, behind only the US, with 64 deals, a 22% share of total deals. France was the second most active CyberTech country with a 12.7% share and China was third with an 8.2% share. Revenue in Israel’s Cybersecurity market is projected to reach $900m in 2023 and is expected to show an annual growth rate (CAGR 2023-2027) of 10.8%, resulting in a market volume of $1.35bn by 2027.

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• How KYC Portal’s face-to-face module bolsters facial recognition?- Biometric facial recognition has become an increasingly important verification tool for customer onboarding and ongoing compliance. Read the full story?here.

Regulation news

• Do UK businesses see ESG as a priority??- A recent survey by?Advanced?has found that only 36% of UK senior decision markets list ESG as a business priority this year.?Read the full story?here.
• UK government puts open finance at the forefront of new data legislation?- The UK?Department for Science, Innovation and Technology?has put forward a new version of the Data Protection and Digital Innovation Bill.?Read the full story?here.
• EU financial regulators to carry out financial system climate stress test?- The EU’s financial regulators are planning to carry out a system-wide analysis of the financial sector’s climate-related risk resilience.?Read the full story?here.

RegTech Deal news

• Crypto firm Proven snares $15.8m in seed funding haul?-?Proven, a developer of zero-knowledge proofs that enables exchanges, stablecoins, asset managers and custodians to prove their solvency, has raised $15.8m in a seed round. Read the full story?here.
• DeFi firm Violet nets $15m, launches compliant decentralised exchange?-?Violet, a provider of privacy-protective compliance and identity infrastructure for DeFi, has bagged $15m in a funding round and launched a compliant decentralised exchange. Read the full story?here.
• Web3 firm Cubist lands $7m in seed raise?-?Cubist, a security-focused Web3 dev tools provider, has scored $7m in a seed funding round headed by Polychain Capital. Read the full story?here.

CyberTech news

• Samsung Next backs Mitiga in Series A raise?-?Mitiga, a cloud and SaaS incident response firm, has raised an undisclosed amount in a Series A funding round. Read the full story?here.
• US CyberTech Secuvy snaps up new funding?-?Secuvy, a California-based contextual data privacy and security platform, has raised an undisclosed amount in financing. Read the full story?here.
• Security solution Monarx scores $6.1m in funding raise?-?Monarx, a security solution for web hosting, has bagged $6.1m in a recent funding round headed by Signal Peak Ventures. Read the full story?here.

Other RegTech news

• VR Payment taps Hawk AI to boost anti-financial crime offering -?VR Payment, a payment specialist that is part of the DZ Bank Group, has teamed with German RegTech?Hawk AI.?Read the full story?here.
• European Parliament votes for member states to reduce emissions by 2030?-?The?European Parliament?has passed legislation that will require EU member states to cut greenhouse gas emissions by the year 2030.?Read the full story?here.
• Rapid7 snaps up ransomware prevention firm Minerva Labs?-?Rapid7, a cloud risk and threat detection firm, has acquired CyberTech firm Minerva Labs for an undisclosed fee.?Read the full story?here.