1

Cybersecurity

Market Review

Q4 2015 | Year End

Advisors & Dealmakers In Cybersecurity.

Momentum Cyber

Momentum Cyber is the premier

trusted advisor to the Cybersecurity

industry providing bespoke high-impact

advice combined with tailored senior-

level access. The firm was founded by

world-class operators and advisors and

caters to the unique needs of both

earlier stage Founders, CEOs, & Boards

as well as the complexity of later stage

& public companies throughout their

lifecycle – Incubation to Exit.

Eric McAlpineFounder & Managing Partner

20+ Years Cybersecurity Board/CEO Advisor, Founder & Engineer

Michael TedescoFounder & Managing Partner

20+ Years M&A and Board Advisory Across Enterprise IT, Board Member, & Investor

The Founders

World Class Operators & Advisors Empathy

Objectivity

Action

Tenacity

Innovation

Long Term Loyalty

Sense of Humor

Keith SkirbeDirector

Dino BoukourisDirector

Dave DeWaltFounder & Chairman

30+ Years in Tech, 17 Years as CEO>$20B in Value Creation

Lifecycle Advisory For Cybersecurity.

$200+ Billion200+ Deals

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About The FirmWorld-Class Operators & Advisors.

Momentum Cyber provides world-class M&A and strategic advice combined with unparalleled senior-level access to the Cybersecurityecosystem. We advise on a broad range of strategic activities, including mergers and acquisitions, board & special situations, corporate strategy

& development, corporate finance, and operational excellence. We are a mission driven firm with a passion for Cybersecurity.

Year Founded After Highly Successful Wall Street & Cybersecurity Executive Careers

Cybersecurity M&A Transactions & Total Deal Value Executed By Team Members Since 2002

Total M&A Transactions & Deal Value As A Team Since 1994

2018 33 $14B 200+ $200B+

Average & Median Cybersecurity M&A Deal Value

Value Creation To Shareholders As CEO, Board, & Investor

Combined Years In Cybersecurity As World-Class Operators & Advisors

$433M $140M $20B+ 70+

Cyber Exit Savvy – Deep Expertise Selling to Strategic & Financial Buyers

Unparalleled Access Across the Cybersecurity Ecosystem with Executives,

Board Members, Investors, & CISOs

Unrivalled Thought Leadership In Cybersecurity Through Insightful

Research, Market Reviews, Media Appearances & Speaker Engagements

3

Balanced & Highly Experienced Advisors

Access.

Executives

Board Members

Investors

Entrepreneurs

Policy Influencers

Chief Security Officers

A Bespoke High-Impact Advisory Boutique With Unique Senior-Level Access.

Advice.

▪ Mergers & Acquisitions

- Sellside

- Buyside

- Divestitures

- Joint Ventures

▪ Board & Special Situation Advisory

▪ Corporate Strategy & Development

▪ Corporate Finance

▪ Partnerships & Business Development

47%

34%

19%

<$100M $100M - $400M >$400M

41%59%

SellsideBuyside

$140M Median$433M Average

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Tremendous M&A Track Record In Cybersecurity

Network Vulnerability Mgmt. Web Email Cloud SIEM Analytics Threat Intel Mobile Endpoint MSSP IoT● ● ● ● ● ● ● ● ●●

Significant Deal Experience And Comprehensive Coverage Across The Cybersecurity Landscape.

Secure CloudOrchestration

CloudSecurity

acquired by

SIEM

$160M

acquired

EndpointSecurity

$65M

acquired

SaaS / Mobile Security

$220M

acquired by acquired byacquired

Managed Detection &

Response

acquired by

Security Analytics

acquired by

Web Security

$60M

acquired by

Network / Web Security

$465M

acquired

EmailSecurity

$274M

acquired

NetworkSecurity

$295M

acquired

IntrusionDetection

$145M

acquired

Managed Security Services

$135M

acquired by

SaaS / Email Security

$695M

acquired by

Vulnerability Management

$86M

Industrial IOTSecurity

acquired by

$403M

●

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M&A In Cybersecurity | A CEO’s Unique PerspectiveTremendous M&A Track Record As CEO, Chairman, & Investor For Three Decades.

Executive Insights Into: (i) Strategic Thesis Development, (ii) Board Communication & Management, (iii) Investor Messaging, and (iv) Merger Integration

Note: Deals with disclosed deal values greater than $25 Million.

Orchestration & Automation

$28M

acquires

Threat Intelligence

$269M

acquires

Network Forensics

$67M

acquires

Incidence Response

$1.0B

acquires

SIEM

$160M

acquires

Diversified Security

$7.7B

acquired by

Mobile Security

$33M

acquires

TRUST DIGITAL

NetworkSecurity

$116M

IPO

acquires

Network / Web Security

$465M

acquires

ApplicationControl

$46M

acquired by

Content Mgmt. Software

$2.1B

acquires

Collaboration Software

$111M

acquires

Web Security

$81M

acquires

Data Loss Prevention

$50M

acquires

$350M

acquires

Email

$169M

Endpoint Encryption

ScanAlert

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7,500+ 1,800+

2,500+

Investors

CISOs

Momentum’s Vast Cybersecurity Network & ReachA Unrivaled Global Network of Buyers, Innovators, Investors, & Security Professionals.

Executives

Companies

750+

7

Industry Research Sector Research Landscape Reviews

Thought Leadership In CybersecurityMomentum’s Team Is Dedicated To Providing Thought Leadership In Addition To Our Dealmaking & Advisory Services.

8

WestEast

Europe

LatAm

Israel

APAC

1 5 1 1

6 3 0 7

Momentum’s Global Reach

0 1 7

0 3 5 9

Co

mp

anie

sEx

ecu

tive

sC

ISO

sIn

vest

ors

,

,

,

, *** AS OF JANUARY 20, 2016 ***

Relentless Coverage + Providing Meaningful Insights.

Global Sector Coverage & Reach

4

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CYBERscape 2.0: Our Landscape TaxonomyThe Security Sector Is Dynamic And Vast. We Are Ceaseless & Vigilant In Our Coverage.

Infrastructure Security Endpoint Security Application Security

Endpoint Protection & Anti-Virus WAF & Application Security

Vulnerability AssessmentIntrusion Prevention Systems

Unified Threat Management

Network Firewall Network Monitoring

Source: Momentum Cyber.

Identity & Access Management

Threat Intelligence Mobile Security

Endpoint Detection & Response

IoT Security

Transaction Security

Web SecurityMessaging Security

Specialized Threat Analysis & Protection

Cloud Security

SIEM

Security Incident Response

Security Operations & Incident Response

Risk & Compliance

Data Security

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Q4 Market Update And ObservationsWhat A Year Of Strategic Activity It Was In 2015. Q4 Was Another Very Busy Quarter For Strategic Moves.

Exits: M&A & IPO Activity

Industry Observations

Valuations

Investment Activity

▪ The cybersecurity M&A market continued at a record pace in 2015, totaling 142 transactions, representing a 61% increase over the five-year low-point in 2012

▪ There were several large notable M&A transactions during Q4 – Elastica ($280M), Lancope ($453M), TippingPoint ($300M) and Vormetric ($400M)

▪ Mimecast priced during Q4 ($10/share); Dell Secureworks and Veracode remain on file and Tenable Network Security and Tanium are on IPO watch

▪ Q4 saw a surge in large rounds yet again with eight companies raising $50M+, of which three raised at least $75M – Forescout ($75M), Tenable Network ($250M), Code42 ($86M)

▪ 2016 could be a golden era of cybersecurity investing with ample capital and an increasing threat landscape; however, some are predicting a measured slow-down leaving a slew of Seed/Series A funded companies without a Series B sponsor…and in desperate need of a ‘home’

Top 5 Movers in Q4

35% 33%

20%36%

27%

▪ Threat Intelligence in the spotlight during the quarter – M&A and significant capital raise activity

▪ Spending on cybersecurity totaled an estimated $77 Billion for 2015 and projected to reach $170 Billion in 2020, but is it sufficient? Organizations spent another $491 Billion recovering from attacks in 2015 –6x the spend to thwart them

▪ Predictions abound for 2016 – buzz words too – IoT, ransomeware, hacktivism, autonomic defense, user behavior monitoring, machine learning, adversary intelligence, cyberwar (?!)

▪ There were some notable declines during Q4 – our High Growth Security comps were -7% during Q4 and +18% YTD while our Low Growth Security comps were +6% during Q4 and -9% YTD, relative to the NASDAQ which was +8% during Q4 and +6% YTD

▪ Rapid7, Sophos and Mimecast were trading -5%, +9%, and -4% relative to their IPO price, respectively, at the end of Q4

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Strategic Activity In 2015M&A & Venture Capital Remained Strong While IPOs Were Not Immune To Market & Economic Pressures.

Selected Acquisition Activity(Date: Implied Enterprise Value / LTM Rev Multiple)

Equity(Date: $ Raised)

Selected VC Activity(Date: $ Raised / Pre-$ Valuation / Funding Stage)

Source: Capital IQ, 451 Group, Crunchbase, TechCrunch. Momentum Cyber maintains a proprietary Security M&A deal database.

6/15:$635M/NA

4/15:$1.9B/NA 4/15:$80M/NA

9/15:$425M/2.0x

12/15:$35M/1.9x 11/15:$150M/NA 11/15:$280M/NA 10/15:$453M/NA

10/15:$300M/1.8x 10/15:$400M/7.5x 10/15:$71M/NA 10/15:$116M/10.3x

10/15:$65M/3.2x 9/15:$290M/NA 7/15:$190M/NA

6/15:$22M/NA 6/15:$20M/NA 5/15:$60M/NA

4/15:$200M/3.3x 4/15:$786M/3.6x

3/15:$2.4B/NA 3/15:$43M/NA 3/15:$32M/NA 1/15:$85M/NA 1/15:$40M / NA / C2/15:$15M / NA / B2/15:$35M / $185M / B

3/15:$11M / NA / A4/15:$100M / $900M / C6/15:$30M / $122M / C

7/15:$18M / NA / B7/15:$100M / $567M / C7/15:$42M / $249M / C

8/15:$52M / $380M / E9/15:$75M / $275M / D9/15:$75M / $1.1B / F

10/15:$15M / $55M / B10/15:$33M / NA / A11/15:$250M / NA / B

11/15:$20M / $60M / B12/15:$27M / $43M / B12/15:$50M / NA / C

11/15: IPO: $78M

9/12: Series C: $62M1/10: Series B: $21M12/08: Series A: $8M

7/15: IPO: $103M

12/14: Series D: $30M11/11: Series C: $50M

2/10: Series B: $2M9/08: Series A: $7M

$91M

$89M

6/15: IPO: $553M

5/02: Minority: $60M9/98: Venture: $4M

$64M

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Notable M&A TransactionsCybersecurity Continued To Remain A Key Strategic Priority For IT & Non-IT Buyers.

▪ Founded in 2000, Lancope focuses on behaviour analytics, threat visibility and security intelligence to detect malicious activity on corporate networks

▪ Lancope highly complements Cisco’s cybersecurity strategy “highlighting the network as an infosec sensor and enforcer”, and is already integrated with Cisco tech for network profiling and enforcement

▪ Marked Cisco’s fourth security deal in previous 12 months – OpenDNS ($635M), Neohapsis and Portcullis

▪ Founded in 2001, Vormetric provides a Data Security Platform that protects any file, any database and any application’s data – anywhere it resides (physical, big data and cloud environments)

▪ Vormetric had 200 employees and over 1,500 enterprise clients, including 17 of the top 30 U.S. companies

▪ Acquisition accelerates Thales’ cybersecurity initiatives; Vormetric will be integrated into Thales e-Security which already protects network data for 19 of 20 largest world banks

Acquires

Date: 10/27/15Ent. Value: $453MAmount Raised: $24.6M

Ent. Value / Rev: NA Ent. Value / EBITDA: NA

▪ Founded in 2012 and launched in 2014, Elastica’s CloudSOC platform is rated for its ability to provide visibility, threat detection and prevention, data governance and post incident analysis to cloud applications. Capabilities are delivered via CASB gateway and API controls

▪ This marks the second major purchase in the CASB market by Blue Coat, having acquired PerspecSys in July 2015

▪ Blue Coat has invested $500M+ in organic and inorganic development in recent years to expand its cloud security capabilities

▪ Founded in 2008, LastPass is a provider of password management software with 7 million users across both the consumer and enterprise market

▪ LastPass will better position LogMeIn in the identity and access management market, which represents one of LogMeIn’s top three strategic growth initiatives

▪ As part of the transaction, another $15M is available in contingent payments if LastPassmeets certain milestone and retention targets over the two years post-acquisition

Acquires

Date: 11/9/15Ent. Value: $280MAmount Raised: $36.3M

Ent. Value / Rev: NA Ent. Value / EBITDA: NA

Acquires Acquires

Source: Capital IQ, PitchBook Data, CrunchBase.

Date: 10/19/15Ent. Value: $400MAmount Raised: $45.0M

Ent. Value / Rev: 7.5xEnt. Value / EBITDA: NA

Date: 10/09/15Ent. Value: $116MAmount Raised: Self-Funded

Ent. Value / Rev: 10.3xEnt. Value / EBITDA: NA

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53%

16%

25%

6%

$0 - $50M

$50M - $100M

$100M - $500M

$500M+

10%

19%

26%

45%

< 2 years

2 to 5 years

5 to 10 years

10+ years

13%

34%

25%

14%

15% Seed

Series A

Series B

Series C

Series D+

46%

15%

26%

12% $1M - $10M

$10M - $20M

$20M - $50M

$50M+

A Closer Look at Recent Cybersecurity Exits Breaking Down The Cybersecurity Exits In 2014 And 2015.

Last Round Prior to Exit Time to Exit

Total $ Raised Prior to Exit Deal Size

Note: Excludes undisclosed deal values (typically < $50M).

Observations

Note: Excludes self-funded companies.

Note: Excludes companies that raised <$1M.

▪ An active area of ‘pursuit’ for Corporate

Development teams is finding Series A backed

companies at rational valuations

- Many founders face the dilemma: sell now or

raise more money and raise the bar

▪ Just under a third of companies exited prior to

turning 5 years old

- ‘Quick flips’ are not the norm

▪ Just over half of cybersecurity exits are $50M or

below

- The ‘sweet spot’ for cybersecurity exits is $25M

- $100M (roughly two-thirds of all cybersecurity

exits)

▪ Just under half of venture backed cybersecurity

companies raised <$10M prior to their exit

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Notable VC FinancingsInvestors Not Afraid To Deploy Significant Capital For Well-Established Or Game Changing Companies.

▪ The raise eclipsed the previous record for a cyber funding round held by Airwatch who raised $225M in 2013. Incidentally, Insight and Accelwere also part of that deal

▪ Founded in 2002, Tenable’s flagship products include SecurityCenter Continuous View, which provides an integrated view of network health, and Nessus, software used for detecting and assessing network data

▪ Tenable added 200 employees in 2015 and said billings grew 50%+ last year, with a current run rate exceeding $100M

▪ Founded in 2001, Code42 is an enterprise SaaS provider of endpoint data protection and security to more than 37,000 organizations. It is best known for CrashPlan, a solution that backs up all distributed end user data on a single, secure platform

▪ Since pivoting to the enterprise Code42 has been experiencing strong growth – 100% year-over-year

▪ Proceeds from the financing will be utilized to expand Code42’s data analysis capabilities

Raises $250.0 Million

▪ IronNet CyberSecurity was founded in 2014 by Former U.S. National Security Agency Director Keith Alexander along with former top officials in U.S. Department of Defense, the National Counterterrorism Center and the Defense Advanced Research Projects Agency

▪ IronNet’s technology detects and mitigates anomalous activity in a company’s cyber infrastructure using advanced behavioural models and analytics

▪ The funding will help accelerate growth and scale the launch of the IronNet product line

▪ iBoss was founded in 2005 and brought its first product to market in 2009. iBoss’ technologies work by “actively monitoring all network traffic” which allows it to “prevent large-scale data breaches caused by malware that has made its way onto the network and is posed to steal data”

▪ iBoss’ clients include Xerox, Sears, Urban Outfitters, and the US Department of the Interior

▪ The post-money valuation on the round was north of $500M

Raises $32.5 Million

Raises $85.6 Million

Date: 10/6/15Series BTotal Amount Raised: $137.5M

Raises $35.0M

Date: 11/3/15Series ATotal Amount Raised: $35.0M

Source: Capital IQ, PitchBook Data, CrunchBase.

Date: 11/10/15Series BTotal Amount Raised: $300.7M

Date: 10/25/15Series ATotal Amount Raised: $32.5M

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To Series B or Not to Series B? That is the QuestionThose Companies That Cross The Chasm Have A Finite Set Of Experienced Investors To Lead Their Series B Round.

The Funding Snapshot: Series A & B Recent Series B Lead Investors In Cybersecurity

A

B

($531M)

($475M)

($410M)

($50M)

($100M)

($450M)

($202M)

($650M)

($425M)

($1.6B)

($4.7B)

(N/A)

($70M)

($250M)

($282M)

($675M)

($622M)

($300M)

($225M)

($400M)

($260M)

($702M)

($1.8B)

($1.4B)

($1.0B)

($1.1B)

($525M)

($225M)

($400M)

($2.8B)

(N/A)

($300M)

($375M)

($520M)

(N/A)

($450M)

(N/A)

($236M)

($450M)

(N/A)

Note: Last fund size in parentheses. All firms above led a Series B round in the past two years. Some notable exclusions are Trident Cyber, A16Z, Redpoint, and Intel Capital (all of which can/do lead Series B rounds).

Note: Companies shown raised their A or B round in 2015.

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StockPerformance

(since IPO)10%* 185% * 5%* 333% * 255% * 133% * 17%* 24%* 44%* 60%* 28%* 190% * 4%* 11%* 23%*

EV / LTM Rev(Current)

2.5x 9.0x 1.7x 8.9x 12.2x 5.0x 2.8x 3.4x 1.3x 1.3x 1.9x 8.4x 4.0x 4.7x 3.5x

Total $ Raised $128M $230M $120M $82M $260M $91M $128M $304M $64M $100M $75M $86M $553M $103M $78M

3.9x

13.0x

4.4x 4.3x

13.4x

4.0x5.3x

20.5x

4.1x5.7x

4.6x5.3x

4.0x

6.7x

4.0xMedian: 4.6x

Security IPO InsightsBefore And After FireEye’s IPO: A Stark Contrast Of Post-IPO Performance & Corresponding Valuation Impact.

Implied Multiple On The Day of Pricing For Each Security Sector IPO(Multiple: EV / LTM Revenue)

Source: Capital IQ.

IPO Timing 2012 2013 2014 2015

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Momentum’s Fourth Quarter Watch ListSelected Private Companies With “Momentum” That We Are Tracking.

Raised: $9.2M

HQ: Woodside, NY

Company Commentary

▪ Phantom Cyber truly automates enterprise security operations. Phantom Cyber arms securityoperations with the automation and orchestration solutions that ready them to defend theircompany’s business

▪ “Phantom is a force-multiplier for our security team,” said Jay Leek, Chief Information SecurityOfficer at Blackstone

▪ Leadership: Oliver Friedrichs (CEO) and Sourabh Satish (CTO)

▪ ProtectWise is disrupting the network security industry with its Cloud Network DVR, a virtualcamera in the cloud that records everything on the network

▪ “We are driving a shift away from the old school, prevention-centric, endpoint approach tonetwork security to a modern, integrated platform approach that is based on vastly improveddetection, visibility and response,” said Scott Chasin, CEO

▪ Leadership: Scott Chasin (CEO) and Gene Stevens (CTO)

▪ ThreatQuotient is the only Threat Intelligence Platform (TIP) that centrally manages andcorrelates unlimited external sources with all internal security and analytics solutions forcontextual, operationalized intelligence in a single pane of glass

▪ Revolutionizing cyber defense capabilities by building an analyst-driven application that helpsorganizations manage threat intelligence to defend against cyber attacks

▪ Leadership: John Czupak (CEO), Wayne Chiang (Chief Architect), & Ryan Trost (CTO)

▪ Fortscale turns the tables on insider threats by delivering the industry’s most precise, scalableand extendible user behavior analytics solution

▪ Using machine learning, Fortscale first detects unusual user behavior, then ranks the results inorder of their anomalousness, all with continuous tuning to optimize future results in order toprovide unmatched threat detection accuracy

▪ Recent investment by CME Ventures (CME Group) and UST Global for expansion

▪ Leadership: Idan Tendler (CEO) and Dr. Yona Hollander (COO)

▪ RedSeal provides a cybersecurity analytics solution to Global 2000 organizations that helpsmaximize their digital resilience. RedSeal’s advanced analytics engine creates functioningnetwork models, tests networks to identify security risks, prioritizes needed actions, andprovides critical information to quickly remediate issues

▪ Recently named to Deloitte’s Technology Fast 500, growing 137% year-over-year

▪ Leadership: Ray Rothrock (Chairman & CEO)

▪ LookingGlass is the leader in threat intelligence driven security and dynamic threat defensegenerating, sourcing, and delivering the most extensive sources of threat data available out ofthe box through its ScoutVision and Virus Tracker products

▪ Recently acquired Cyveillance, a leader in open-source threat intelligence (OSINT)

▪ Other acquisitions include CloudShield and Kleissner and Associates

▪ Leadership: Chris Coleman (CEO) and Randy Brumfield (COO)

Company Commentary

▪ Area 1 Security, a stealth cybersecurity company that is dedicated to eliminating targetedphishing and malicious social engineering attacks through a globally-distributed sensor network,taking a data-driven approach to provide timely and accurate visibility into the deliverymechanisms attackers are using

▪ Founded by security and data analytics experts from NSA, MIT and Disney

▪ Leadership: Oren Falkowitz (CEO) and Blake Darche (Chief Security Officer)

▪ Wandera provides a cloud-based Secure Mobile Gateway to secure mobile devices from cybercriminals while at the same time providing mobile data optimization and real-time intelligence,which provides granular control and visibility over data usage and generates immediate ROI

▪ Partner ecosystem includes AT&T, BT & Samsung as well MDM players

▪ Leadership: Eldar Tuvey (CEO) and Roy Tuvey (President)

▪ ForeScout offers the unique ability to see devices the instant they connect to the network,control them and orchestrate information sharing and operation among disparate security toolswithout requiring software agents or previous device knowledge

▪ ForeScout’s shares contextual data it discovers about endpoints with other security vendorsthrough its ControlFabricArchitecture making existing tools smarter

▪ Named 1 of 20 fastest growing security companies in 2015 (Silicon Review)

▪ Leadership: Michael DeCesare (CEO), Oded Comay (CTO)

▪ Peerlyst is an on-line network of security professionals, including some of the top CISOs,effectively helping security professionals succeed through sharing

▪ “There aren’t a lot of places for security pros to collaborate — they can read tech magazinesand content but there’s not one place for them to do all that and get information on products,”says Founder Limor Elbaz

▪ Leadership: Limor Elbaz (CEO)

Source: Momentum Cyber, PitchBook Data, CrunchBase, Company press releases.

Raised: $37.2M

HQ: Denver, CO

Raised: $12.2M

HQ: Sterling, VA

Raised: $16M

HQ: San Mateo, CA

Raised: $56M

HQ: Sunnyvale, CA

Raised: $82.5M

HQ: Arlington, VA

Raised: $26M

HQ: London / SF

Raised: $25.5M

HQ: Redwood City, CA

Raised: $186.4M

HQ: Campbell, CA

Raised: $3M

HQ: San Francisco, CA

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Raised Series A (10/25/15): $32.5M

Momentum’s Watch List: Q2 & Q3 2015A Look Back At Those Companies With “Momentum” Spotlighted in The Previous Two Quarters.

Q3 2015 Q2 2014

Acquired By (11/9/15):

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Sector Watch: The Threat Intelligence Arms RaceStrategic Activity Abound As Acquirors & Investors Seek The Holy Grail – ‘A Single Pane Of Glass’.

Notable Strategic Activity Other Strategic Activity

Other Notables

Founded: 2006

HQ: Baltimore, MD

Total Raised: $82M

$50MSeries C12/11/15

▪ Simultaneous with the capital raise announced theacquisition of Cyveillance, a leader in OSINT, for$35M

▪ 2015 was a record year – raised additional $20M andacquired Kleissner & Assoc. & CloudShield

Founded: 2013

HQ: Baltimore, MD

Total Raised: $40M

$27MSeries B12/03/15

▪ Other investors included Avi Rubin, CS professor atJohns Hopkins, Lane Bess, former CEO of Palo AltoNetworks and Tim Eades, CEO of vArmour

Founded: 2013

HQ: Sterling, VA

Total Raised: $12M

$10MSeries A12/02/15

▪ Simultaneous with the capital raise announced theappointment of John Czupak as CEO on 10/20/15.Previously, Czupak spent 12+ years in senior roles atSourcefire

Founded: 2011

HQ: Arlington, VA

Total Raised: $20M

$16MSeries B12/01/15

▪ Investment driven by SAP National Security Services(NS2) is a precursor to the development of a jointproduct built on SAP HANA to be added toThreatConnect’s portfolio in 2016

Target Buyer Metrics

12/15: $35M/NA

10/15: NA/NA

7/15: NA/NA

6/15:$635M/NA

5/15: NA/NA

3/15: $32M/NA

3/15: $5M/NA

10/14: NA/NA

5/14: NA/NA

1/14: $827M/8.1x

5/09: $40M/4.0x

Company Metrics

9/15: $11M/Series A

7/15: $100M/Series C

4/15: $12M/Series D

3/15: $20M/Series B

2/15: $5M/Series A

2/15: $8M/Series A

12/14: $22M/Series B

12/14: $30M/Series C

5/14: $25M/Series B

4/14: $8M/Series A

3/14: $20M/Series E

20

AshleyMadison.com

Carefirst

Experian / T-Mobile

AOL2,400,000

Adult Friend Finder

Living Social

Neiman Marcus

Securus Technologies

US Office of Personnel

Management

US Office of Personnel

Management (2nd Breach)

Uber

Twitch.tv

UPS

UbiSoft

Anthem80,000,000

Ebay145,000,000

Home Depot56,000,000

Advocate Medical Group

JP Morgan Chase

76,000,000

Target70,000,000

NASDAQ

ssndob.ms

D&B, Altegrity

Mozilla

Korea Credit Bureau

European Central Bank

Dominios Pizzas (France)

Community Health

Services

CarPhone Warehouse

British Airways

Australian Immigration Department

Hacking Team IRS MSpy

Premera

Sony Pictures

Slack

Staples

TalkTalk

MacRumuors.com

Japan Airlines

High Profile Breaches In The Spotlight For A Second Year The World’s Largest Data Breaches in 2014 & 2015. Is The Spend To Prevent Them Sufficient?

…ATTACKERSgo undetected for

229 DaysSource: 2014 Mandiant Report

…more than…

140 Countrieshave some level of cyber weapon development program

Source: fortune.com

…CYBER ATTACKScould cost the global economy

$3 Trillionin lost productivity & growth

Source: 2014 Mandiant Report

…the average cost of a data breach

$3.5 Millionincreased 15% over the past year

Source: 2014 study Phonemon institute

Source: Momentum Cyber,

http://www.informationisbeautiful.net/visualizations/worlds-biggest-data-breaches-

hacks/, Gartner, IDC.

New York Taxis

By The Numbers…

Global spend on Cybersecurity products reached $77 Billion in 2015 while organizations spent

another $491 Billion recovering from successful cyber attacks. Is the spend sufficient?

21

What’s In Store For 2016?After A Thrilling 2015…We Survey & Report The Key Predictions For Cybersecurity In 2016.

▪ M&A: M&A will continue it’s vigorous pace into 2016, and may even pick up

▪ PE/VC: A golden era in 2016 for cybersecurity investing; great companies and teams will get the capital they deserve, albeit with some Series A ‘fallout’

▪ Public Markets: equity markets will reward balanced and predictable growth + profitability for cybersecurity companies who set and meet sound expectations; more strong performing IPOs in 2016with a number of high caliber candidates

▪ IoT: the internet of hackable things – a new frontier of data breaches on the horizon

▪ Ransomeware: the year of online extortion – how much would you pay to regain access to your computer? Your TV programming? Your fridge?!

▪ Breaches & DOXing: 2015 was painful and the worst on record, but 2016 will be even worse. Our data will continue to be weaponized and used against us

▪ Hactivism: ‘greed is good’ according to Gordon Gekko, but not the only motivation of hackers – hactivism on the rise.

▪ Autonomic Defense: the continued threat intelligence data explosion combined with a chronic shortage of threat analysts, demand increases for automated response

▪ Machine Learning: goes mainstream for user behavior and anomaly detection

▪ War?!: 2016 will see the world’s first openly declared cyberwar

The Predictions… …The Predictors

22

M&A Activity in Security

Strategic Moves For Competitive Advantage Accelerating The Landscape Of Buyers For Cybersecurity Companies Has Expanded Over Time.

Notable Deals By Sector

Source: Momentum Cyber.

Most Active Acquirers

Cybersecurity

IT

/

DefenseISP

PE

Industrial

IT

Industrial ISP PE

Defense

4/15:$1.9B/NA

10/14:$233M/3.0x

9/12:$86M/7.1x

8/15:NA/NA

4/15:$200M/3.3x

3/15:$2.4B/NA4/15:$786M/3.6x

10/15:$9M/NA

7/15:NA/NA

12/14:$710M/6.0x

5/14:NA/NA

11/15:$280M/NA 11/15:$150M/NA

10/15:$71M/NA 10/15:$453M/NA

4/15:$80M/NA7/15:$190M/NA

7/14:NA/NA

24

Security M&A Activity: Deal Volume and Exit MultiplesSecurity M&A Activity Remains Robust.

Source: Momentum Cyber, 451 Research.

Security M&A Volume By Year (# Deals) Median Security EV/Revenue Multiples

5.5x5.0x

4.5x

2013 2014 2015

107 10188

100

136 142

2010 2011 2012 2013 2014 2015

▪ Security M&A activity continued its record pace, totaling 142 transactions in

2015, a 61% increase over the five-year low-point in 2012

▪ Some of the more active Security sectors in 2015 included cloud security,

identity & access management, data security, network security and threat

intelligence

▪ The median Security exit multiple in 2015 was 4.5x as valuations continued to

rationalize, having declined 18% since 2013

25

Notable Security M&A TransactionsSecurity M&A Transactions With Disclosed Transaction Values.

Date Target Buyer Enterprise Value ($M) TTM Revenue ($M) EV / Revenue

12/16/15 Evault Carbonite 14.0 − −

12/14/15 SurfRight Sophos 31.8 − −

12/11/15 Cyveillance LookingGlass Cyber Solutions 35.0 18.0 1.9x

12/10/15 Trustev TransUnion 44.0 − −

11/24/15 Fox-IT Group NCC Group 132.3 29.0 4.6x

11/17/15 Aura Information Security Kordia Group Limited 6.5 − −

11/09/15 Secure Islands Microsoft 150.0 − −

11/09/15 Elastica Blue Coat Systems 280.0 − −

11/02/15 Bloxx Akamai 18.7 − −

10/27/15 Lancope Cisco 452.5 − −

10/22/15 Cloudpath Networks Ruckus Wireless 9.0 − −

10/21/15 TippingPoint Technologies Trend Micro 300.0 169.0 1.8x

10/19/15 Vormetric Thales e-Security 400.0 53.5 7.5x

10/13/15 Logentries Rapid7 71.1 − −

10/09/15 LastPass LogMeIn 115.7 11.2 10.3x

10/08/15 Daegis Open Text 20.8 23.7 0.9x

10/07/15 Viewfinity CyberArk 30.5 − −

09/29/15 Intronis Barracuda Networks 65.0 20.6 3.2x

09/24/15 Billguard Prosper 30.0 − −

09/22/15 Elitcore Technologies Sterlite Technologies 27.6 22.3 1.2x

Source: Capital IQ, PitchBook Data.

26

Notable Security M&A TransactionsSecurity M&A Transactions With Disclosed Transaction Values.

Date Target Buyer Enterprise Value ($M) TTM Revenue ($M) EV / Revenue

09/08/15 Adallom Microsoft 290.0 − −

09/04/15 Good Technology Blackberry 425.0 211.9 2.0x

08/25/15 Above Security Hitachi Data Systems 4.7 − −

08/19/15 EyeLock VOXX International 20.2 − −

08/06/15 Pawaa Software Cisco 5.0 − −

07/09/15 Caspida Splunk 190.0 − −

06/30/15 OpenDNS Cisco Systems 635.0 − −

06/09/15 Reflexion Networks Sophos 22.0 − −

06/08/15 IdMlogic CA Technologies 20.0 − −

06/02/15 nSense F-Secure 19.6 7.8 2.5x

05/27/15 ShieldArc Palo Alto Networks 18.0 − −

05/06/15 Privax AVG 60.0 − −

04/28/15 Cervalis CyrusOne 400.0 70.0 5.7x

04/21/15 Watchdox Blackberry 70.0 − −

04/20/15 Websense Raytheon 1,900.0 − −

04/14/15 Fedelis Cybersecurity Solutions Marlin Equity Partners 200.0 60.0 3.3x

04/07/15 Trustwave Singtel 785.7 216.0 3.6x

04/02/15 Lacoon Mobile Security Check Point 80.0 − −

03/24/15 Accumuli NCC Group 69.1 28.6 2.4x

03/10/15 Blue Coat Systems Bain Capital 2,400.0 − −

Source: Capital IQ, PitchBook Data.

27

Notable Security M&A TransactionsSecurity M&A Transactions With Disclosed Transaction Values.

Date Target Buyer Enterprise Value ($M) TTM Revenue ($M) EV / Revenue

03/10/15 CyActive Paypal 43.0 − −

03/02/15 Emerging Threats Proofpoint 32.3 − −

03/02/15 Xerocole Akamai 16.6 − −

03/02/15 Cloudshield Lookingglass Cyber Solutions 5.0 − −

02/24/15 Optenet Allot Communications 38.0 − −

02/19/15 MegaPath Managed Services Business Global Technology & Telecom 152.4 142.4 1.2x

01/14/15 IntellinX Bottomline Technologies 84.9 − −

12/09/14 Tripwire Belden 710.0 118.5 6.0x

11/13/14 Aorato Microsoft 200.0 − −

11/05/14 Blackbird Technologies Raytheon 420.0 − −

10/31/14 WISeKey Garnero Group 138.3 6.2 22.2x

10/21/14 Silversky Networks BAE Systems 232.5 − −

10/20/14 RightSignature Citrix Systems 37.5 − −

10/13/14 Danaher (Textronix, Arbor, Fluke) Netscout 2,619.4 836.0 3.1x

10/01/14 MobileSpaces Pulse Secure 100.0 − −

09/15/14 Attachmate Micro Focus 2,159.4 875.4 2.5x

09/11/14 Morvirtu Blackberry 32.5 − −

09/04/14 Meldium LogMeIn 15.0 − −

09/03/14 Location Labs AVG Technologies 220.0 33.0 6.7x

09/02/14 BeyondTrust Software Veritas Capital 310.0 70.5 4.4x

Source: Capital IQ, PitchBook Data.

28

Notable Security M&A TransactionsSecurity M&A Transactions With Disclosed Transaction Values.

Date Target Buyer Enterprise Value ($M) TTM Revenue ($M) EV / Revenue

09/02/14 SOFTPRO Kofax 34.7 13.3 2.6x

08/08/14 SafeNet Gemalto 890.0 454.8 2.0x

07/29/14 Secusmart Blackberry 9.0 − −

07/21/14 Retail Decisions ACI Worldwide 205.0 − −

07/07/14 CA Arcserve Data Protection Assets Marlin Equity Partners 170.0 − −

05/20/14 NetCitadel Proofpoint 22.8 − −

05/19/14 Divide Google 120.0 − −

05/06/14 nPulse Technologies FireEye 67.1 − −

04/24/14 DecTech Solutions GB Group 28.9 9.8 3.0x

04/23/14 docTrackr Intralinks 10.0 − −

04/07/14 Metaforic INSIDE Secure 17.4 − −

03/31/14 Blancco Oy Regenersis 70.3 17.1 4.1x

03/24/14 Cyvera Palo Alto Networks 213.3 80.0 2.7x

02/23/14 Boxtone Good Technology 360.0 20.9 17.2x

02/10/14 Cyberoam Sophos 80.0 − −

02/06/14 Skyfence Imperva 65.0 − −

02/06/14 Incapsula Imperva 40.5 − −

01/30/14 Tomium Imperva 8.1 − −

01/22/14 AirWatch VMware 1,545.0 − −

01/06/14 Morta Security Palo Alto Networks 10.3 − −

Source: Capital IQ, PitchBook Data.

29

Notable Security M&A TransactionsSecurity M&A Transactions With Disclosed Transaction Values.

Date Target Buyer Enterprise Value ($M) TTM Revenue ($M) EV / Revenue

01/02/14 MANDIANT FireEye 826.5 102.0 8.1x

12/09/13 QUMAS Accelrys 47.8 19.3 2.5x

12/03/13 Alaric NCR 67.8 − −

12/02/13 Prolexic Akamai 402.6 − −

10/01/13 41st Parameter Experian 324.0 − −

09/30/13 Sensory Networks Intel 20.0 − −

09/17/13 Versafe F5 Networks 87.7 − −

08/15/13 Trusteer IBM 900.0 40.0 22.5x

08/09/13 Armorize Technologies Proofpoint 25.0 − −

07/23/13 Sourcefire Cisco Systems 2,193.6 247.4 8.9x

07/18/13 PasswordBank Symantec 24.9 − −

07/08/13 Aveksa EMC/RSA 225.0 − −

05/20/13 Websense Vista Equity Partners 971.1 359.4 2.7x

05/06/13 StoneSoft McAfee 326.0 46.6 7.0x

04/29/13 Arkoon Network Security Cassidian CyberSecurity 17.2 16.4 1.0x

04/09/13 Mail Distiller Proofpoint 4.4 − −

12/05/12 Zenprise Citrix Systems 324.2 − −

10/30/12 Silver Tail Systems EMC/RSA 350.0 − −

10/17/12 Motex Kyoera 171.5 38.1 4.5x

09/13/12 Sensage KEYW 85.5 12.1 7.1x

Source: Capital IQ, PitchBook Data.

30

Notable Security M&A TransactionsSecurity M&A Transactions With Disclosed Transaction Values.

Date Target Buyer Enterprise Value ($M) TTM Revenue ($M) EV / Revenue

07/27/12 AuthenTec Apple 378.3 76.1 5.0x

07/02/12 BreakingPoint Ixia 150.4 40.2 3.7x

06/20/12 Wavelink LANDesk Software 82.0 − −

04/23/12 Memento & Integrated Compliance Fidelity National Information Services 45.1 − −

04/03/12 LogLogic TIBCO 131.6 − −

03/13/12 SonicWALL Dell 1,200.0 − −

02/13/12 Mykonos Software Juniper Networks 82.6 − −

01/11/12 Compliance 360 SAI Global 42.3 − −

01/09/12 LiveOffice Symantec 115.0 − −

Mean 284.5 121.5 4.8x

Median 82.0 40.1 3.3x

Source: Capital IQ, PitchBook Data.

31

VC Activity in Security

Financing Activity Reached New Heights in 2015Security Startups Raised $10.9 Billion Across 1074 Deals Since 2010.

Source: Momentum Cyber, CB Insights.

Investment Deals And Dollars($M) (Q1 2010 – Q4 2015)

$197 $212 $236 $141 $130$219 $259

$242$248 $264

$446

$269

$510

$261

$427$515 $542

$822 $821

$522 $549

$859

$1,178$1,188

27 30

23 28 30 31

35

24

40

47

33

36

51

42

49

59 60 64 59 59 59

7059 60

Q1

'10

Q2

'10

Q3

'10

Q4

'10

Q1

'11

Q2

'11

Q3

'11

Q4

'11

Q1

'12

Q2

'12

Q3

'12

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Q3

'15

Q4

'15

Investments ($M) Deals

▪ Over the last eight quarters investors have poured $6.5B into cybersecurity

▪ On a quarterly basis, 3Q15 and 4Q15 were the strongest for investment, with value of deals reaching over

$2.4B

▪ Quarterly number of deals hit a peak in 2Q15 with 70 deals

Investment Deals And Dollars($M) (2010 – 2015)

$0.8 $0.8

$1.2

$1.7

$2.7

$3.8

108 120

156

201

242 248

2010 2011 2012 2013 2014 2015

Investments ($B) Deals

▪ Deals and dollars increased steadily, both growing

by more than 100% in 2015 compared to 2010

levels

▪ Funding in 2015 surpassed 2014 by $1B but number

of deals were relatively flat

33

302 301 301

275

232

186 183 182 176156

143 138 136 135 134

20 19

17 17 16 16

15 14

11 10 10

9 9 8

Security Startups And InvestorsList Of Most Well-Funded Startups And Most Active VC Investors.

Source: PitchBook Data, Crunchbase.* Investments in rounds with minimum size of $5 million.

Most Well-Funded Security Startups ($M) Most Active Investors in Security*

▪ The top 15 most well-funded startups have raised $3.0B over their lifespan, with 42%

($1.2B) being raised in 2015 alone

▪ Tanium tops the list and is the hottest cybersecurity company, having raised $212M

in 2015 and over $300M since 2007

▪ Since 3Q15 the minimum funding increased from $100M to $134M and four new

companies were added (Digital Guardian, Code42, Forescout & Tenable)

▪ Among investors, Intel Capital is the most active investor having invested in 20

companies since 2010

▪ Accel Partners and Sequoia Capital followed with 19 and 17 investments,

respectively

34

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

16-Dec-15Danhua Capital, Linear Capital Partners, Sparkland Ventures, Trust Bridge Partners

Trustlook develops a static analysis platform for detecting suspicious behavior and malicious

characteristics for Android operating systems.

16-Dec-15Brookline Venture Partners, Fairhaven Capital Partners, GE Pension Trust, LLR Partners

Digital Guardian provides data security solutions to protect data from insider and outsider threats.

15-Dec-15American Express Ventures, BDC Venture Capital, Blumberg Capital, Tenfore Holdings

Trulioo provides online portal for identity verification services.

11-Dec-15Alsop Louie Partners, Neuberger Berman, NewSpring Capital

Lookingglass Cyber Solutions develops cyber threat intelligence monitoring and management

platforms.

9-Dec-15Amadeus Capital Partners, Aspect Venture Partners, Bain Capital Ventures

ForeScout enables organizations to continuously monitor and mitigate security exposures and cyber attacks.

3-Dec-15Core Capital Partners, Genacast Ventures, Highland Capital Partners, NEA

ZeroFOX provides real-time social threat analytics, intelligence, and advanced security protection via its cloud-based cyber platform.

2-Dec-15 JMI EquityAvecto's Defendpoint software protects endpoints from malware and cyberattacks through privilege management, application control and sandboxing technology.

2-Dec-15Blu Venture Partners, NEA, Center for Innovative Technology

ThreatQuotient offers a software platform that helps security teams mitigate cyber attacks by aggregating and managing intelligence on threats.

1-Dec-15 Grotech Ventures, SAP National Security ServicesThreatConnect provides a cyber threat intelligence platform that allows global organizations to

manage massive amounts of threat information.

1-Dec-15Alibaba, GE Ventures, Jérusalem Venture Partners, Poalim Ventures

Theta Ray offers malware detection and prevention solutions for critical infrastructure, communication systems, and financial systems.

17-Nov-15Arsenal Venture Partners, Crosslink Capital, Paladin Capital, Tola Capital, Trinity Ventures

ProtectWise offers cloud-based network security services.

11-Nov-15Menlo Ventures, Jerusalem Venture Partners, OurCrowd, Draper Nexus

AppDome’s dynamic wrapping SaaS technology provides shield to enterprise and consumer-facing

apps from advanced cyber threats, mobile fraud, and data theft.

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

Source: Capital IQ, PitchBook Data, CrunchBase.

17.0

66.0

10.9

50.0

75.4

27.0

49.0

10.2

16.0

20.0

20.0

13.0

35

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

11-Nov-15Norwest Venture Partners, Invus Group, Accolade Partners, Shasta Ventures

TigerText provides security software for text messaging for physicians to use on their mobile devices.

10-Nov-15 Insight Venture Partners, Accel PartnersTenable Network Security specializes in developing software that enables real-time network monitoring to detect hackers and other malicious actors.

9-Nov-15Costanoa Ventures, Foundation Capital, Split Rock Partners, Triangle Peak Partners

Guardian Analytics is provider of fraud prevention software for protecting online channels and

accounts.

3-Nov-15 Goldman Sachs iboss Cybersecurity provides innovative APT Defense, Web Security and Mobile Security Solutions.

2-Nov-15Foundation Capital, Matrix Partners, Northbridge Venture Partners

Confer provides endpoint detection and response solution (EDR) that proactively identifies attacks

and provides real-time visibility across all endpoints.

30-Oct-15 Merck Global Health Innovation Fund Exostar develops B2B information sharing software.

29-Oct-15 UndisclosedLumeta provides network situational awareness platform which is source for enterprise network infrastructure and cybersecurity analytics.

27-Oct-15 Aspect Venture Partners, US Venture PartnersCato Networks provides cloud-based platform to manage multiple hardware and software products and provide security against hacking, data theft and other security problems.

27-Oct-15 Index Ventures, Storm VenturesSourceClear develops software security platform for developers that help organizations identify

components across software portfolio.

25-Oct-15 Trident Cybersecurity, KPCBIronNet Cybersecurity provides suite of technologies that provide real-time threat assessment and updates and consulting services.

14-Oct-15Allegis Capital, Cowboy Ventures, KPCB, First Round Capital, Icon Ventures

Area 1 Security provides campaign delivery systems and allows enterprises to identify cyber attacks and other attacking campaigns before they unfold using their anti phishing platform.

14-Oct-15.406 Ventures, Accomplice VC, Agman Partners, Evolution Equity Partners

Bit9 provides endpoint threat detection, response, and prevention solutions to detect and stop cyber threats.

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

Source: Capital IQ, PitchBook Data, CrunchBase.

50.0

250.0

10.9

35.0

17.0

15.0

13.0

20.0

10.0

32.5

15.0

54.5

36

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

13-Oct-15 GSR Ventures, NEADataVisor provides big data security analytics to help protect consumer-facing websites and mobile

apps from cyber criminals.

13-Oct-15 Charles River Ventures, Softbank, Spark CapitalCybereason delivers a technology platform that automatically uncovers malicious operations,

reconstructing them as a clear image of a cyberattack in context.

7-Oct-15Granite Hill Capital Partners, SineWave Ventures, The Data Collective, Third Point

Sentinel Labs provides monitoring technology to protect workstations and mobile phones from threats.

6-Oct-15Accel Partners, JMI Equity, NEA, Split Rock Partners

Code42 Software provides secure cloud services for endpoint data protection and security that allow

their users to limit risk, meet data privacy regulations, and recover from data loss.

30-Sep-15 KPMGNorse delivers continuously-updated and unique Internet and darknet intel that helps organizations

detect and block attacks.

29-Sep-15DAG Ventures, AME Cloud Ventures, Juniper Networks, Intel Capital, IA Ventures, Accel

Vectra Networks’ X-series platform uses next-gen compute architecture and combines data analytics and machine learning to detect attacks.

29-Sep-15Icon Ventures, Aspect Ventures, Shlomo Kramer, Norwest Venture Partners

Exabeam offers machine-learning technology that focuses on cyber attacker behavior to detect modern cyber attacks.

25-Sep-15Arsenal Venture, EDB Investments, Fairhaven Capital Partners, Ten Eleven Ventures

CounterTack provides real-time endpoint threat detection and response solutions to enterprises and

government organizations.

22-Sep-15Baidu, Fidelity Management, Qualcomm Ventures, Microsoft, NEA, Google, Venrock

CloudFlare is a web performance and security company that provides online services to protect and

accelerate websites online.

21-Sep-15 Orchard Holdings GroupMorphick team has developed the only proven platform-enabled managed service to enable their

customers to prevent, detect, and respond to even the most advanced attacks.

17-Sep-15 Tano CapitalTascent develops and deploys biometric identity products and solutions based upon a strong

heritage in iris recognition and multimodal high throughput and mobile biometrics.

10-Sep-15Allianz Digital, Vertex Venture Capital, Magma Venture, SBI Holdings, Magna International

Argus is an automotive cybersecurity pioneer, helping car manufacturers, their Tier I suppliers and

aftermarket connectivity providers protect connected cars from car hacking.

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

Source: Capital IQ, PitchBook Data, CrunchBase.

14.5

59.0

25.0

85.6

11.4

35.1

25.0

17.9

108.7

10.0

18.5

26.0

37

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

10-Sep-15 IVP, TPG, Andreessen Horowitz, T. Rowe Price Tanium provides security and systems management solutions to allow real-time data collection.

8-Sep-15Andreessen Horowitz, Greylock, Sequoia, Altimeter Capital, Glynn Capital, Khosla

Okta is an integrated identity and mobility management service.

3-Sep-15ICONIQ, Accel Partners, Lightspeed, Social+Capital Partnership

Netskope performs deep usage analytics and enforces business and security policies in cloud apps.

2-Sep-15Bessemer Venture Partners, Citi Ventures, Innovation Endeavors, Marker, NEA

Illusive networks offers deception technology enabling protection against targeted attacks and APTs.

25-Aug-15.406 Ventures, Arsenal Venture Partners, Evolution Equity Partners

Onapsis provides solutions for securing business-critical applications and infrastructure.

24-Aug-15 Bessemer Venture Partners, Thomas NoonanBastille is pioneering IoT security with next-generation security sensors and airborne emission detection, allowing corporations to accurately quantify risk and mitigate threats.

19-Aug-15Benchmark, Meritech Capital, Shasta Ventures, Tenaya Capital, Lightspeed, Musea

CloudPassage provides server security products for public and hybrid cloud hosting environments.

18-Aug-15 IVP, GGV Capital, KPCB, Trident CapitalAlienVault’s Unified Security Management Platform delivers a unified, simple and affordable solution for threat detection, incident response and compliance management.

3-Aug-15Google Capital, TPG Capital, EMC, Lightspeed Venture Partners

Zscaler offers integrated, cloud-delivered Internet security including web security, firewalls, mobile

security, IoT security and DLP.

28-Jul-15DFJ Growth, Dell Ventures, KKR, Blackstone, Thomvest, Khosla, Draper Nexus, TenEleven

Cylance utilizes artificial intelligence, algorithmic science and machine learning to proactively protect

organizations against advanced threats.

24-Jul-15Accelerate IT Ventures, Trident Capital, PanasonicVenture Group

Mocana creates and develops mobile application protection (MAP) app-shielding solutions, enabling

users to secure mobile apps.

14-Jul-15 Summit PartnersDarktrace’s Enterprise Immune System technology detects unidentified threats in real time, powered by machine learning and mathematics developed at the University of Cambridge.

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

Source: Capital IQ, PitchBook Data, CrunchBase.

147.5

75.0

75.0

22.0

17.0

13.8

35.9

52.0

110.0

42.0

14.8

25.0

38

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

13-Jul-15Accel Partners, Google Capital, Rackspace, Warburg Pincus

CrowdStrike is a global provider of security technology and services focused on identifying advanced

threats and targeted attacks.

13-Jul-15Allegis Capital, Marc Benioff, Blackstone, Igor Sill, Kevin Plank, Christian Lawless

RedOwl Analytics provides proactive risk oversight software solutions for compliance, insider threat

& investigations.

1-Jul-15Pinnacle Ventures, Redpoint Ventures, Quihoo 360 Technology

PSafe is a Brazilian company developing Secure Cloud Computing software suites such as the PSafe Antivirus for safe internet browsing.

25-Jun-15 Insight Venture PartnersCheckMarx.com develops software solutions that are used to identify security vulnerabilities in Web

and mobile applications.

24-Jun-15Benchmark, New Enterprise Associates, Marc Benioff, David Sacks, Drew Houston

HackerOne provides a vulnerability management and bug bounty platform.

24-Jun-15 New Enterprise Associates, Sigma Prime VenturesBarkly uses high-performance local analytics and a unique design to stop attacks in the moment

while preventing tampering from users and attackers.

18-Jun-15Bessemer Venture Partners, Correlation Ventures,IDEA Fund Partners, Techstars

Distil’s SaaS bot detection and mitigation solutions work like a protective shield and block malicious

bots, malware and competitors’ that try to scrape websites without permission.

9-Jun-15Intel Capital, QuestMark Partners, Silver Lake Partners

Venafi provides enterprise key and certificate management security solutions – the Immune System

for the Internet™

8-Jun-15Engineering Capital, General Catalyst, Osage University Partners, Sutter Hill Ventures

Menlo Security is a stealth cyber security company that develops security solutions eliminating the

threat of advanced malware.

1-Jun-15Foundation Capital, Matrix Partners, Sapphire Ventures, Trinity Ventures, Chris Rust

Cyphort develops cloud services, software, and appliance-based solutions to protect enterprises

against the newest cyber threats.

28-May-15Excel Venture Management, Flare Capital, Heritage Group, HLM Venture, NVP, Merck

ClearDATA offers security, privacy, and compliance services to the hospitals, physician practices,

electronic medical record software, and healthcare markets.

20-May-15 Carmel Ventures, Lightspeed Venture Partners enSilo offers a real-time targeted attack exfiltration prevention platform.

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

100.0

17.5

30.0

84.0

25.0

12.5

21.0

39.0

25.0

30.0

25.0

10.0

Source: Capital IQ, PitchBook Data, CrunchBase.

39

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

19-May-15China Broadband Capital Partners, China Growth Capital, IDG Capital Partners

FraudMetrix provides network risk and fraud services, serving institutional clients in the banking,

third party payment, credit dealers and gaming industries.

19-May-15 Andreessen Horowitz, Corazon CapitalKeybase allows users to easily encrypt, decrypt and share messages within a tried-and-tested

encryption standard.

18-May-15Espírito Santo Ventures, Oak HC/FT, Sapphire Ventures

Feedzai provides a platform that uses real-time, machine-based learning to help payment networks,

banks and retailers prevent fraud in omnichannel commerce.

18-May-15Comcast Ventures, Commonwealth Capital, Flybridge Capital, Globespan Capital

BitSight provides a security rating platform, which analyzes external data on security behaviors that

allows to manage third party risk, and benchmark performance.

6-May-15 Spark Capital, CRV, Lockheed MartinCybereason delivers a technology platform that automatically uncovers malicious operations,

reconstructing them as a clear image of a cyberattack in context.

16-Apr-15Reed Elsevier Ventures, Atlas Venture, Balderton Capital, GV, IA Ventures, In-Q-Tel

Recorded Future arms organizations with real-time threat intelligence, allowing them to proactively

defend against cyber attacks.

15-Apr-15 Index Ventures, Intel Capital, Sutter Hill VenturesSkyport Systems develops enterprise security and hyper-secured infrastructure solutions for critical

IT and corporate assets.

14-Apr-15HP Ventures, Index Ventures, Sequoia Capital, Rembrandt

Adallom is a cloud access security broker which delivers visibility, governance and protection for

cloud applications.

14-Apr-15Accel Partners, Andreessen Horowitz, BlackRock, General Catalyst, Formation 8

llumio provides cloud solutions, specializing in virtualization, networking, and security hailing services.

9-Apr-15Venrock, Index Ventures, New Enterprise Associates

Niara's solution blends diverse data sources, sophisticated analytics and forensics to discover

compromised users, provide insight into malicious insiders.

8-Apr-15 Andreessen Horowitz, Citi Tanium provides security and systems management solutions to allow real-time data collection.

6-Apr-15DRW Investors, Icon Ventures, Leapfrog Ventures, Math Venture Partners

RedSeal develops security risk management (SRM) software and solutions and helps companies

eliminate cyber threats.

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

30.0

10.8

17.5

23.0

25.0

12.0

30.0

30.0

100.0

20.0

64.0

17.0

Source: Capital IQ, PitchBook Data, CrunchBase.

40

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

1-Apr-15Cisco, EPIC Ventures, Trident Capital, Vanedge Capital, Vmware, AITV, Fortinet

HyTrust, a cloud security automation company, provides administrative control, auditing, & data

security for private, hybrid, and public clouds.

26-Mar-15AITV, Cisco, EPIC Ventures, Fortinet, Granite Ventures, and others

PhishMe provides training to employees against phishing threat enabling them to identify, report,

and mitigate spear phishing, malware and drive-by threat.

26-Mar-15Accel Partners, Flybridge Capital Partners, Greycroft Partners, Millenium Technology

BetterCloud provides critical insights, automated management, and intelligent data security for cloud office platforms.

25-Mar-15 Neuberger Berman Group, Alsop Louie PartnersLookingglass Cyber Solutions develops cyber threat intelligence monitoring and management platforms.

24-Mar-15Bain Capital Ventures, Commerce Ventures, Lightspeed Venture Partners

InAuth is the most complete mobile authentication and anti-fraud solution offering multiple security

options to financial institutions and the mobile transaction market.

20-Mar-15August Capital, Engineering Capital, Norwest Venture Partners, Wing Venture Partners

Palerra provides software that combines threat detection, predictive analytics, security

configuration management and automated incident response & remediation in one platform

19-Mar-15ONSET Ventures, Voyager Capital, Presidio Ventures, LDV Partners, Envision Ventures

Vidder mitigates network-based attacks by making servers invisible to everyone except authorized users.

19-Mar-15Benchmark Capital, GV, Lead Edge Capital, Radar Partners, Redpoint Ventures, others

Duo Security provides two-factor authentication as a service to prevent account takeover and data theft.

18-Mar-15 Invoke Capital, Hoxton Ventures, Talis CapitalDarktrace, a cyber security company, offers intelligence-led behavioral cyber defense solutions for cyber-attack vectors.

10-Mar-15 Allegis Capital, March Capital Partners, The Hive E8 Security helps enterprises analyze and detect advanced attacks and malicious insider activities.

26-Feb-15 UndisclosedSilent Circle is a global encrypted communications service that provides cutting-edge encrypted text, e-mail, mobile phone and video teleconferencing services.

26-Feb-15Sierra Ventures, Samsung Ventures, Telstra Ventures, Lazarus Israel, Toyo Corporation

Zimperium, a mobile cyber security company, develops Mobile Intrusion Prevention System.

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

33.0

13.0

25.0

20.0

23.5

17.0

12.0

30.0

18.4

10.7

50.0

12.0

Source: Capital IQ, PitchBook Data, CrunchBase.

41

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

25-Feb-15 Rogers Venture Partners, Blue Sky CapitalSecureKey develops platform-as-a-service based hardware and software solutions for chip-based identity and payment technologies.

18-Feb-15Institutional Venture Partners, Andreessen Horowitz, Felicis Ventures, Redpoint, Citi

Pindrop Security provides caller-ID products to detect, report, and mitigate phone fraud.

17-Feb-15BOLDStart Ventures, Evolution Equity Partners, Sequoia Capital

SecurityScorecard is a provider of security risk assessment service for cloud-based information systems.

10-Feb-15Alcatel Lucent, Bessemer Venture Partners, Cisco, Innovation Endeavors, Marker

Team 8 is an incubator for cyber-security firms with specialty in defending against targeted, human-driven cyber-attacks

10-Feb-15 83North, Bessemer Venture Partners Wandera provides security and management of mobile data for global enterprises.

26-Jan-15 Bessemer Venture Partners, Columbia CapitalVerato helps rightly identifying individuals regardless of whether their names, addresses or other

personal information was incorrect or out-of-date.

16-Jan-15 Avalon Ventures, NHN Investment CorpAir Computing cloud platform AeroFS allows enterprise customers to synch and share all data securely behind a firewall with unlimited storage.

13-Jan-15KPCB, Meritech Capital Partners, Icon Ventures, Google Ventures, TechOperators

Ionic Security offers a unified data and mobility security platform.

31-Dec-14 Bessemer Venture PartnersiSight Partners provides cyber threat intelligence solutions to public sector and commercial entities in the United States.

19-Dec-14KPCB, Google Ventures, Greylock Partners, GGV Capital, Icon Ventures

Synack provides a cloud-based platform that enables customer data integrity, privacy, and confidentiality.

16-Dec-14Charles River Ventures, Scale Venture Partners, Social+Capital Partnership

OneLogin's cloud-based Identity and Access Management solution allows enterprises of all sizes to secure their cloud and on-premise apps for all users and devices.

16-Dec-14ATA Ventures, Northgate Capital, RWI Ventures, TVC Capital

EdgeWave engages itself in the design, development and marketing of internet security appliances, services and offers secure content management and policy compliance services.

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

19.0

35.0

13.7

18.0

15.0

12.5

10.0

40.1

30.0

25.0

25.0

13.0

Source: Capital IQ, PitchBook Data, CrunchBase.

42

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

16-Dec-14Technology Crossover Ventures, Bain Capital Ventures

Rapid7 provides vulnerability management and security data and analytic software solutions and services.

9-Dec-14 Grotech Ventures, Khosla Ventures, Citi Ventures DB Networks provides behavioral analysis solutions for intrusion detection and database security.

9-Dec-14DCM, DDS, DoCoMo Capital, ONSET Ventures, Raven Venture Partners and others

Nok Nok Labs develops products and services for online security and authentication.

8-Dec-14Summit Partners, Battery Ventures, Florence Venture Partners

RiskIQ provides a software-as-a-service product that eliminates online and mobile threats.

8-Dec-14 Auriga Partners, VI Partners, Mannai Corp Nexthink is the innovator of End-user IT Analytics for security, ITSM and workplace transformation.

4-Dec-14Palladin Capital, Google Ventures, IVP, General Catalyst Partners

ThreatStream’s Optic platform is a security intelligence solution that aggregates millions of threat indicators into existing security systems.

19-Nov-14T-Venture, Delta Partners, Andreessen Horowitz, Transamerica Ventures

CipherCloud provides cloud information protection solutions.

19-Nov-14Bessemer, Columbia Capital, KPCB, Paladin Capital, Top Tier, Edgemore Capital, Savano

Endgame provides security intelligence and analytics solutions for real-time visibility and actionable insight across their digital domains.

18-Nov-14 Osage Partners, General Catalyst PartnersMenlo Security, a stealth cyber security company, develops a security solution that eliminates the threat of advanced malware.

18-Nov-14 IPV Capital, ANT Financial V-Key provides mobile application threat research, protection, and intelligence solutions.

11-Nov-14 NEA, Sequoia Capital Forter provides a software to reduce frauds during transaction.

31-Oct-14Battery Ventures, Amplify Partners, Chris Rust, Nick Mehta

Veradocs, a data-security company, secures and shares digital information across platforms and devices.

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

31.0

17.0

16.3

27.5

14.5

22.5

50.0

30.0

10.5

12.0

15.0

10.0

Source: Capital IQ, PitchBook Data, CrunchBase.

43

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

22-Oct-14Benhamou Global Ventures, Javelin Venture Partners, Lakewood & Co, Vital Venture

Spikes Security provides browser-based security software solutions to businesses.

30-Sep-14NTT DoCoMo Ventures, Octopus Investments, Paladin Capital

Certivox provides application and content security, as well as on-demand encryption key generation services.

30-Sep-14Draper Fisher Jurvetson, MeriTech Capital Partners

Good Technology Corporation provides secure mobility solutions for enterprises and governments worldwide.

30-Sep-14Pelion Venture Partners, Third Point Ventures, Akamai Technologies

Krimmeni Technologies manufactures, markets, and licenses data security systems for device manufacturers and content providers.

23-Sep-14Alloy Ventures, Battery Ventures, Scale Venture Partners, First Round Capital

Agari Data provides email security solutions.

22-Sep-14Benchmark Capital, True Ventures, Radar Partners, Google Ventures

Duo Security provides two-factor authentication as a service to prevent account takeover and data theft.

18-Sep-14DFJ, KKR, Sapphire Ventures, General Catalyst, Volition Capital, Ten Eleven

Ping Identity Corporation provides cloud identity security and management solutions.

16-Sep-14Cisco, Edison Partners, Georgian Partners, Northleaf Capital Partners, VentureLink

eSentire has reinvented enterprise network security by focusing on protecting your core assets inside the network through our human driven, behavior-based solution.

11-Sep-14Wellington Management, .406 Ventures, Atlas Venture, Meritech Capital, In-Q-Tel, Polaris

Veracode offers a cloud-based application security platform for managing enterprise-wide governance programs

10-Sep-14Battery Ventures, Glilot Capital Partners, Amplify Partners

Light Cyber develops solutions for identifying and preventing cyber-attacks and advanced persistent threats.

20-Aug-14Citi Ventures, Columbus Nova Technology Partners, Work-Bench

vArmour Networks provides software-defined security solutions for virtualized data centers and government cloud operators.

18-Aug-14 Battery Ventures, 83North GuardiCore provides network security solutions for software-defined data centers.

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

12.0

11.3

80.0

11.7

15.0

12.8

35.0

12.7

40.0

10.0

21.0

11.0

Source: Capital IQ, PitchBook Data, CrunchBase.

44

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

13-Aug-14Accel, Goldman Sachs, Index Ventures, T.Rowe Price, A16, Khosla, Wellington, Bezos

Lookout develops and delivers cloud-based consumer mobile device security applications for iPhones and iPads.

13-Aug-14China Broadband Capital Partners, Linear Venture, IDG Capital Partners

FraudMetrix provides network risk and fraud services, serving institutional clients in the banking,

third party payment, credit dealers and gaming industries.

12-Aug-14Dell Ventures, Presidio Ventures, Redpoint Ventures, eVentures

Lastline provides cloud-based systems and processes for the analysis of malware.

6-Aug-14Sequoia Capital, Tenaya Capital, Nexus Venture Partners

Druva Software provides data protection and governance solution for public and private clouds in an enterprise.

6-Aug-14 Toba CapitalSecureAuth is a technology leader in universal identity enforcement for mobile devices, cloud applications and networks.

5-Aug-14New Enterprise Associates, Norwest Venture Partners, SingTel Ventures

Bitglass provides security solutions that automatically segments, tracks, and secures businesses’ sensitive data across cloud and mobile.

5-Aug-14Accel Partners, Intel Capital, Khosla Ventures, Juniper, AME Ventures, IA Ventures

Vectra Networks’ X-series platform uses next-gen compute architecture and combines data analyticsand machine learning to detect attacks.

29-Jul-14 Jerusalem Venture Partners, Poalim VenturesTheta Ray offers malware detection and prevention solutions for critical infrastructure, communication systems, and financial systems.

25-Jul-14Baird Venture Partners, Jump Capital, Math Venture Partners

NowSecure develops and provides mobile security solutions for the financial, healthcare, and governmental institutions.

23-Jul-14 ABS Capital Partners, Signal Peak VenturesBask Technology provides remote technology and proactive maintenance services for private homes and small businesses in the United States and internationally.

22-Jul-14Riverwood Capital, Adams Street Partners, Access Venture Partners, Piper Jaffray

LogRhythm provides log management and security information and event management solutions.

22-Jul-14 Frontier CapitalInteliSecure provides a portfolio of information and network security services to help organizations protect their most critical assets.

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

150.0

10.0

10.0

25.0

10.0

25.0

25.1

10.0

12.5

17.8

40.0

14.3

Source: Capital IQ, PitchBook Data, CrunchBase.

45

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

10-Jul-14 Highland Capital PartnersMalwarebytes develops anti-malware technologies to detect and remove malicious programs from PCs.

4-Jul-14Adams Street Partners, March Capital Partners, Summit Partners, Telstra Ventures

Telesign provides mobile identity solutions.

27-Jun-14Mayfield Fund, Pelion Venture Partners, Third Point Ventures

Elastica provides cloud security solutions for businesses and their employees.

25-Jun-14Alsop Louie Partners, Breyer Capital, CME Ventures, Dolby Family Ventures

Wickr develops a mobile messaging platform that specializes in offering data security services.

24-Jun-14 Grotech Ventures, Paladin Capital White Ops detects bots, in real time, at web scale.

23-Jun-14Sequoia Capital, Salesforce Ventures, Greylock Partners

Skyhigh Networks enables companies to adopt cloud services with appropriate security, compliance and governance.

22-Jun-14 Andreessen HorowitzTanium provides security and systems management solutions to allow real-time data collection to enterprises and Fortune 500 customers.

19-Jun-14Accel Partners, Foundation Capital, Meritech Capital Partners

ForgeRock creates identity relationship management solutions for the modern Web including public cloud, private cloud, hybrid cloud, and enterprise and mobile environments.

16-Jun-14Arsenal Venture Partners, Fairhaven Capital, Lucent Asset Management, Goldman Sachs

CounterTack provides real-time endpoint threat detection and response solutions to enterprises and

government organizations.

16-Jun-14Redpoint Ventures, Founders Fund, Bridgescale, Radar Partners, A-Grade

BitGo operates a Bitcoin security platform that offers multi-signature security-as-a-service solutions.

10-Jun-14Norwest Venture Partners, Aspect Ventures, Shlomo Kramer

Exabeam offers machine-learning technology that focuses on cyber attacker behavior to detect modern cyber attacks.

10-Jun-14Crosslink Capital, Trinity Ventures, Paladin Capital, Arsenal Venture

ProtectWise offers cloud-based network security services.

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

30.0

49.4

20.0

30.0

11.1

40.0

90.0

29.9

20.0

12.0

10.0

14.1

Source: Capital IQ, PitchBook Data, CrunchBase.

46

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

9-Jun-14Altimeter Capital, Andreessen Horowitz, Greylock Partners, Janus Capital

Okta is an integrated identity and mobility management service.

2-Jun-14 Blumberg Capital, Intel Capital, Swarth GroupFortscale Security develops data security systems which analyzes information and tracks patterns of potential security threats.

28-May-14Bessemer Venture Partners, Correlation Ventures,IDEA Fund Partners, Techstars

Distil’s SaaS bot detection and mitigation solutions work like a protective shield and block malicious

bots, malware and competitors’ that try to scrape websites without permission.

21-May-14 Cain Capital, Ross PerotSilent Circle is a global encrypted communications service that provides cutting-edge encrypted text, e-mail, mobile phone and video teleconferencing services.

20-May-14Samsung Venture, Fortinet, DoCoMo Capital, Accel, Mayfield, Northgate, BDCA Venture

Centrify Corporation provides unified identity management across data center, cloud, and mobile.

15-May-14Accel Partners, Lightspeed, Social+Capital Partnership

Netskope performs deep usage analytics and enforces business and security policies in cloud apps.

15-May-14Glynn Capital, Mohr Davidow, Greylock, Sequoia Capital, Cisco, Lumia, Sutter Hill

OpenDNS operates as a security company that provides Internet security and domain name system services to secure the networks.

15-May-14Bank of Montreal, Business Development Bank of Canada

BlackRidge helps in authenticating and authorizing all network connections before they are established, stopping malicious attacks that would bypass conventional security measures.

14-May-14First Round Capital, Max Levchin, Spark Capital, Union Square Ventures

Sift science provides of a platform that monitors website traffic to alert clients of fraudulent activity.

14-May-14 Spectrum EquityVerafin is a leading provider of compliance, anti-money laundering (AML) and fraud detection software.

29-Apr-14NEA, Core Capital, Genacast Ventures, Enrique Salem, Comcast Ventures, TCP

ZeroFOX provides real-time social threat analytics, intelligence, and advanced security protection via its cloud-based cyber platform.

23-Apr-14Accel Partners, Tiger Global, Westly Group,Granite Hill Capital, Data Collective

SentinelOne helps enterprises stop targeted attacks with automatic mitigation and provides real-time forensics across multiple platforms.

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

75.0

10.0

10.1

30.0

42.0

35.0

35.0

20.2

18.1

55.1

10.3

12.0

Source: Capital IQ, PitchBook Data, CrunchBase.

47

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

22-Apr-14Adams Street Partners, Blumberg Capital, GRA Venture Fund, Imlay Investments

Damballa discovers active threats that bypass all security prevention layers.

16-Apr-14 The Stephens Group, Treetop VenturesArmor offers customer-centric security outcomes for retail and eCommerce enterprises, healthcare organizations, payment leaders and financial institutions.

24-Mar-14August Capital, Adams Street Partners, U.S. Venture Partners, USVP, Tenaya, CM Capital

ThreatMetrix provides context-based business security and fraud prevention solutions for businesses in various industries worldwide.

19-Mar-14General Electric Pension Trust, Brookline Venture Partners, Fairhaven Capital

Digital Guardian provides data security solutions to protect data from insider and outsider threats.

15-Mar-14Paladin Capital, Yaletown Venture Partners, Rho Canada Ventures, Zinc Ventures

Shadow Networks’ solutions detect and mitigate the large number of APTs on enterprise and government networks.

14-Mar-14Index Ventures, Emergence Capital, Greylock Partners, AME Ventures, Blockchain Capital

Xapo develops and delivers online and offline security solutions for Bitcoin, a digital currency.

5-Mar-14 Allied Minds Optio Labs develops transformational mobile security technologies for the federal and corporate enterprise.

5-Mar-14KPCB, Allegis Capital, Norwest, Venrock, Google Ventures, Sierra Ventures

Shape Security develops web defense products to protect e-commerce and social network websites.

27-Feb-14 ONSET Ventures, DCM Ventures, Lenovo Group Nok Nok Labs develops products and services for online security and authentication.

20-Feb-14Blackstone Group, Khosla Ventures, Fairhaven Capital

Cylance provides enterprise, critical infrastructure and embedded cyber security solutions.

20-Feb-14KPCB, Icon Ventures, TechOperators, Google Ventures, ff Venture, Webb Investment

Ionic Security offers a unified data and mobility security platform.

13-Feb-14Atlas Venture, Highland Capital, KPCB, Sequoia Capital, .406 Ventures, Blackstone

Bit9 provides endpoint threat detection, response, and prevention solutions to detect and stop cyber threats.

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

13.0

25.0

20.0

12.0

13.7

40.0

10.0

40.0

16.5

20.0

25.6

38.2

Source: Capital IQ, PitchBook Data, CrunchBase.

48

Investment

DateSelected Investor(s) Company Business Description

Amount

Raised ($M)

12-Feb-14Benchmark Capital, Meritech Capital Partners, Shasta Ventures, Tenaya Capital

CloudPassage provides server security products for public and hybrid cloud hosting environments.

7-Feb-14 Draper Nexus, Menlo VenturesvArmour Networks provides software-defined security solutions for virtualized data centers and government cloud operators.

27-Jan-14Easton Capital, OrbiMed Advisors, Shasta Ventures, TELUS Ventures, New Leaf Venture

TigerText provides security software for text messaging for physicians to use on their mobile devices.

23-Jan-14Bessemer Venture Partners, Ascent Venture Partners, Cedar Fund, Salesforce

CloudLock provides cloud data security solutions.

21-Jan-14Accel Partners, Innovation Endeavors, Glilot Capital Partners

Aorato develops a technology that provides protection to enterprise resources from advanced cyber attacks.

21-Jan-14 Index Ventures, Sequoia Capital, Zohar ZisapelAdallom is a cloud access security broker which delivers visibility, governance and protection for

cloud applications.

20-Jan-14Tenaya Capital, Andreessen Horowitz, SV Angel, Andy Bechtolsheim

Bluebox Security operates as a stealth startup tackling enterprise mobile security company.

9-Jan-14 Wing Venture Capital, Norwest Venture Partners Dtex Systems develops and provides secure user activity solutions.

7-Jan-14BlueRun Ventures, Lightspeed China Partners, Matrix Partners

QingCloud is a cloud computing platform that provides IaaS-based flexible cloud services.

Total Amount Raised ($M) 5,302.0

Median Amount Raised ($M) 20.0

Venture Capital ActivityVenture Capital Raises >$10 Million Have Substantially Risen Since January 2014.

25.6

15.0

21.0

17.0

10.0

15.0

18.0

15.4

20.0

Source: Capital IQ, PitchBook Data, CrunchBase.

49

Security Public Trading Analysis

80

90

100

110

120

130

140

150

160

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15

High Growth Security Low Growth Security S&P 500 NASDAQ HACK

Security Sector vs Benchmark PerformanceEquity Performance Was A Tale Of Two Halves In 2015.

Source: Capital IQ, market data as of January 19, 2016.

* PureFunds ISE Cybersecurity ETF.

+0%

-13%

-7%

-16%

-4%

3 Months 6 Months 12 Months

High Growth (21.5%) (31.3%) 0.0%

Low Growth (7.0% (12.5%) (16.1%)

NASDAQ (8.7%) (14.2%) (3.8%)

S&P 500 (7.5%) (11.6%) (7.0%)

HACK* (13.9%) (27.2%) (13.3%)

51

1.3x 1.3x 1.7x1.8x 1.8x

2.5x

3.5x 3.8x4.3x

7.8x

Barracuda MobileIron VDSI F-Secure Symantec AVG Mimecast Sophos Trend Micro Check Point

Low Growth Security*(Current: EV / Revenue Multiples)

1.9x

3.4x3.9x

4.7x 5.0x

6.8x

8.4x8.9x 9.0x

12.2x

Imprivata FireEye Fortinet Rapid7 Qualys Imperva CyberArk Proofpoint Splunk Palo AltoNetworks

Trading Multiples: High Growth & Low GrowthValuation Multiples For High Growth & Low Growth Security Companies.

Source: Capital IQ, market data as of January 19, 2016.* High Growth represented by companies with >20% revenue CAGR; Low Growth represented by companies with <20% revenue CAGR.

High Growth Security*(Current: EV / LTM Revenue Multiples)

Median: 5.9x

Median: 2.2x

52

FireEye $2,445 mn

Palo Alto Networks$12,821 mn

Fortinet$4,558 mnBarracuda

$536 mn

Proofpoint$2,274 mn

Imperva$1,699 mn

Splunk$6,284 mn

Qualys $957 mn

Check Point $13,730 mn

Trend Micro $5,461mn

AVG$917 mn

F-secure$406 mnVDSI

$602 mnMobileIron

$292 mn

CyberArk$1,467 mn

Rapid7$593 mn

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

-10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40%

EV /

Re

ven

ue

20

16

E

2015-16E Revenue Growth

Mimecast$417 mn

Imprivata$269 mn

Severe Decline In Correlation Of Value To GrowthOver The Past Three Quarters The Market Has Devalued Growth In Favor of Profitability & Predictability (Back to Basics).

Note: Size of the bubble indicates Market Cap. In USD; Market data as of January 19, 2016.

Source: Capital IQ.

High Growth Security Low Growth Security

R2 By Quarter

Q4: 29.2% Q3: 63.2%

Q2: 68.4% Q1: 79.9%FireEye (Q3)$4,961 mn

Most Impacted

Significantly Impacted

Rapid7 (Q3)$847 mnValuation Decline Q3 to Q4

Low Growth

Market Cap -44% -35%

EV / Rev Multiple -21% -13%

High Growth

Note: Stats denotes impact to all companies as a group.

53

Public Company Trading AnalysisHigh Growth & Low Growth Security.

Note: NM – Not Meaningful, NA – Not Available; market data as of January 19, 2016; * price performance from IPO price.

Source: Capital IQ.

Company Name Stock Price LTM Price

Performance Market Cap

($M)Enterprise Value

($M)2014-15E

Revenue Growth2015E-16E

Revenue Growth

EV / Revenue EV / EBITDA P / E

LTM CY2015 CY2016 LTM CY2015 CY2016 CY2016

High Growth Security (>20% CAGR)

Palo Alto Networks 149.24 19.4% 12,821 12,552 53.4% 35.3% 12.2x 11.1x 8.2x NM 60.3x 32.9x 66.5x

Splunk 48.45 (12.4%) 6,284 5,336 44.5% 31.3% 9.0x 8.2x 6.2x NM NM NM NM

Fortinet 26.46 (14.4%) 4,558 3,650 31.0% 23.7% 3.9x 3.6x 2.9x 25.2x 22.4x 17.5x 39.0x

FireEye 15.23 (53.7%) 2,445 1,973 46.6% 30.7% 3.4x 3.2x 2.4x NM NM NM NM

Proofpoint 56.30 15.7% 2,274 2,198 34.9% 29.9% 8.9x 8.3x 6.4x NM NM NM NM

Imperva 54.07 20.3% 1,699 1,446 40.0% 26.3% 6.8x 6.3x 5.0x NM NM NM NM

CyberArk 46.34 26.4% 1,467 1,217 48.8% 32.2% 8.4x 7.9x 6.0x 32.6x 31.4x 26.6x 49.7x

Qualys 28.00 (25.5%) 957 783 23.1% 22.9% 5.0x 4.8x 3.9x 15.4x 14.4x 12.0x 34.5x

Rapid7* 14.26 (10.9%) 593 469 39.9% 28.5% 4.7x 4.4x 3.4x NM NM NM NM

Imprivata 10.74 (28.2%) 269 217 21.8% 20.1% 1.9x 1.8x 1.5x NM NM NM NM

Mean 38.4% 28.1% 6.4x 6.0x 4.6x 24.4x 32.1x 22.3x 47.4x

Median 39.9% 29.2% 5.9x 5.5x 4.4x 25.2x 26.9x 22.1x 44.3x

Low Growth Security (<20% CAGR)

Check Point Software 75.92 (6.1%) 13,730 12,431 8.9% 7.9% 7.8x 7.6x 7.1x 13.6x 13.3x 12.4x 16.7x

Symantec 19.03 (25.8%) 12,855 11,238 (17.6%) (33.3%) 1.8x 2.1x 3.1x 5.7x 6.4x 8.6x 17.5x

Trend Micro 40.01 49.0% 5,461 4,402 7.0% 20.4% 4.3x 4.3x 3.6x 12.6x 12.9x 10.9x 27.7x

Sophos* 3.41 (3.6%) 1,539 1,755 NA NA 3.8x NA 3.5x 29.4x NA 22.5x 45.5x

AVG Technologies 17.52 (10.7%) 917 1,038 14.1% 4.4% 2.5x 2.4x 2.3x 7.7x 6.7x 6.6x 9.2x

Barracuda Networks 10.09 (71.6%) 536 386 27.3% 11.7% 1.3x 1.1x 1.0x 12.7x 7.0x 3.6x 20.4x

VDSI 15.20 (33.0%) 602 418 19.1% (3.6%) 1.7x 1.7x 1.8x 6.9x 7.0x 8.4x 14.2x

Mimecast* 7.72 (22.8%) 417 452 NA 18.1% 3.5x 3.4x 2.9x 20.9x 28.6x 50.2x NM

F-Secure 2.61 3.2% 406 318 (14.4%) 6.3% 1.8x 2.0x 1.9x 10.6x 10.3x 9.9x 20.8x

MobileIron 3.64 (61.0%) 292 194 10.8% 16.8% 1.3x 1.3x 1.1x NM NM NM NM

Mean 6.9% 5.4% 3.0x 2.9x 2.8x 13.3x 11.5x 14.8x 21.5x

Median 9.8% 7.9% 2.2x 2.1x 2.6x 12.6x 8.6x 9.9x 18.9x

54

Advice. Access.Momentum Cybersecurity Group, LLC

340 Brannan Street | Suite 501

San Francisco, California 94107

Michael Tedesco

Founder & Managing Partner

michael@momentumcyber.com

Eric McAlpine

Founder & Managing Partner

eric@momentumcyber.com

David DeWalt

Founder & Chairman

david@momentumcyber.com