Tuesday, January 31, 2023

Cybersecurity M&A rebounds in Q4


  • Deal volume already more than double low Q3 number
  • Cyber a bigger threat than market vol: Nicolai Tangen
  • Key venture cap area; David Magerman said “most recession-proof”

Cybersecurity M&A deal volume has rebounded so far in Q4, showing heightened venture capital interest despite a possible recession.

Data from 451 Research, part of S&P Global, showed deal volume in October has hit $6.9bn, already double the $3.1bn of Q3.

Cybersecurity was labelled a bigger risk than market volatility earlier this year by Nicolai Tangen, the AKO Capital founder now running Norway’s national oil fund.

David Magerman, ex-Renaissance Technologies quant and co-founder of  Differential Ventures, called cybersecurity the “safest and most recession-proof industry in technology” on the Alternative Fund Insight podcast last month.

“People have been under-aware in the last decade of how important cybersecurity is,” he said. The remote working trend sparked by Covid has heightened its importance.

The more breaches that happen the more people will spend on tools and software, as well as human resources who understand cybersecurity, he added.

See the full data.