Investors seem to be digging cybersecurity yet again.
A week after Abnormal Security closed a $250 million Series D that valued the startup at $5.1 billion, secure content company Kiteworks raised a $456 million round from Insight Partners (which also participated in the Abnormal round) and Sixth Street.
The San Mateo, California-based company described the new round as “growth equity,” but also said it was a “partial liquidity event,” meaning some investors were able to cash out.
While the company did not specify a valuation, it did state it was a minority investment, meaning its valuation is greater than $1 billion.
Kiteworks’ platform allows customers to share sensitive data with other trusted parties via communication channels such as email and file sharing.
In 2020 the company raised $120 million in a funding round led by Bregal Sagemount. Founded in 1999, Kiteworks has raised $592 million.
The company was formerly known as Accellion and suffered a major data breach in 2021.
Cyber funding
Kiteworks’ and Abnormal’s rounds seem to indicate a continuing comeback for cybersecurity funding.
In the second quarter of 2024, cyber startups saw a robust $4.4 billion invested, according to Crunchbase data. The dollar figure represents a 63% increase from Q1, which saw $2.7 billion roll to startups in 173 deals.
It was the best quarter for funding in the sector since Q1 2022 and a 144% increase from Q2 2023.
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Illustration: Dom Guzman
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