September Cyber Intelligence Review
Leaked spending details of the National Intelligence Program (“NIP”) made headlines in late August, providing insight into Intelligence Community (“IC”) funding levels. The NIP highlighted the relative dominance of CIA funding, accounting for 28% of GFY 2013 spending. The leaked documents also highlighted continued funding for offensive cyber warfare capabilities within the IC. News of the government’s cybersecurity efforts continued with DHS’ award of a $6 billion contract for enterprise monitoring solutions. The industry also saw several high profile breaches, with the Department of Energy reporting a data breach and The New York Times’ website shutting down following a “malicious external attack” allegedly carried out by a group called the Syrian Electronic Army.
In public markets news, network monitoring and malware protection firm, FireEye, filed for an IPO, expecting to raise $175 million. Additionally, flash memory provider Violin Memory also filed for an IPO, aiming to raise $173 million. On the M&A front, IBM Corporation acquired Trusteer, a provider for fraud and advanced threat protection solutions, extending IBM’s capabilities into cloud, mobile, and endpoint security. In VC funding news, cloud security provider HyTrust secured an $18.5 million Series C funding round which included industry leaders such as Cisco, Fortinet, and VMware and will be used to continue development of cloud security technologies, including role-based monitoring. Finally, distributed denial-of-service prevention software developer Defense.net, led by serial entrepreneur Barrett Lyon, announced itself to the cybersecurity market with a $9.5 million initial funding round with Bessemer Ventures.