Update on the security market, including a detailed market share breakdown.

1. Security market update
October 2017

2. Latest trends and drivers
2Source: Gartner, ITRC
• Global cybersecurity spend continues to
grow, forecasted to reach a total of $86B in
2017 (7% YoY growth)
• An increasing number of CISOs are being
mandated to report directly to CEOs and
boards
• Artificial intelligence and machine learning
are enhancing SOC productivity, while also
detecting breaches at an unprecedented rate
• Demand for SOC expertise continues to
outweigh supply
• The number of security breaches has, again,
hit record highs, with 791 data breaches
logged in the US alone through 1H ’17 – a
29% increase over 2016 figures during the
same time period
• Politicians are calling for legal action against
executives who allow their companies to be
breached

3. $0
$5
$10
$15
$20
$25
$30
$35
0
20
40
60
80
100
120
140
160
180
200
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Medianpre-moneyvaluation($m)
Dealcount
Deal count Median pre-money valuation
Early stage security forecasted to hit record highs
3Source: Pitchbook
Note: 2017 data runs through Q3’17.
Riding the tailwinds of
the recent Equifax
breach, deal count and
valuations are expected
to reach all-time highs in
2017.

4. 0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
Q1'05
Q2'05
Q3'05
Q4'05
Q1'06
Q2'06
Q3'06
Q4'06
Q1'07
Q2'07
Q3'07
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Q1'08
Q2'08
Q3'08
Q4'08
Q1'09
Q2'09
Q3'09
Q4'09
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
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
EV/LTMrevenue
Public EV / LTM revenue
Public security multiples have remained strong…
4Source: Pitchbook
Note: Public comps include CHKP, SYMC, PFPT, PANW and CYBR.
After reaching a peak in
Q1 ‘15, security
multiples have settled
around 8-9x LTM rev but
may be in the early
phases of another
upward trend.
8.4x
Median: 4.9x

5. $0.0
$10.0
$20.0
$30.0
$40.0
$50.0
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
Q1'05
Q2'05
Q3'05
Q4'05
Q1'06
Q2'06
Q3'06
Q4'06
Q1'07
Q2'07
Q3'07
Q4'07
Q1'08
Q2'08
Q3'08
Q4'08
Q1'09
Q2'09
Q3'09
Q4'09
Q1'10
Q2'10
Q3'10
Q4'10
Q1'11
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q3'13
Q4'13
Q1'14
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Medianpre-moneyvaluation($m)
EV/LTMrevenue
Public EV / LTM revenue Median pre-money valuation
…while private company valuations have also trended upwards though volatile
5Source: Pitchbook
Note: Public comps include CHKP, SYMC, PFPT, PANW and CYBR. Private valuations are comprised of all Series A, Series B and Series C rounds.
Private security
valuations have
followed trends in
public multiples, albeit
with a 6-month lag and
in slightly erratic
fashion.

6. Target Buyer Deal size Target Buyer Deal size
$2.3B $300m
$1.9B $293m
$1.6B $275m
$1.3B $145m
$600m $125m
$544m $100m
$440m $100m
M&A prices have trended downwards in 2017 as acquirers have shown earlier appetites
6Source: Pitchbook, press
Note: 2017 data runs through Q3’17. Includes selected acquisitions >$100m in deal size.
2017 YTD notable transactions 2016 notable transactions
Target Buyer Deal size Target Buyer Deal size
$1.6B $240m
Website Security
$950m $230m
$614m $225m
$400m $185m
$350m $130m
$250m $120m
$250m $100m

7. HPE
CA
IBM
Rapid7
Synopsys
Qualys
WhiteHat Security
Other
Microsoft
CA
Oracle
IBM
Okta
Ping Identity
Centrify
Other
Symantec
Check Point
Palo Alto Networks
McAfee
Trend Micro
Cisco
Fortinet
Kaspersky
Sophos
Other
Symantec
Forcepoint
Cisco
Zscaler
McAfee
Trend Micro
Other
Symantec
McAfee
Digital Guardian
Forcepoint
Fidelis
Other
Symantec
Kaspersky
McAfee
Trend Micro
AVG
Other
IBM
Splunk
HPE
Dell EMC (RSA)
Micro Focus
Trustwave
McAfee
LogRhythm
Other
Proofpoint
Cisco
Symantec
Microsoft
McAfee
Trend Micro
Barracuda
Mimecast
Sophos
Forcepoint
Other
Symantec and McAfee continue to diversify their product offerings
7Source: Company filings, EIKON, Gartner, Thomvest estimates
SEGs
SWGs SIEM
Consumer
EPPs / ENFs
IAM
Testing
DLP
Note: $6.2B of market share has been left out as ‘Other.’
$1.5B
$2.0B $2.0B
$4.6B
$3.5B
$2.6B
$550m
$800m
$24B US security market
in 2016.

8. Kareem Aly
kareem@thomvest.com
About Thomvest Ventures
8
Thomvest is an early- to late-stage venture capital firm with $300m under management. We primarily focus
on opportunities in the US with startups in the fields of cybersecurity, advertising & marketing technology,
and financial technology. The capital we invest is our own, enabling us to be more creative, flexible, and
patient with our entrepreneurial partners. More than two-thirds of the companies we have funded in the last
decade have either gone public, been acquired, or continue to grow as independent businesses.
For questions or comments, please contact:
Umesh Padval
umesh@thomvest.com