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Welcome to the January issue of Talking Cyber, YL Ventures’ cybersecurity newsletter.
We are excited to share the latest global news impacting our industry as well as trends, innovations and tips for cybersecurity entrepreneurs and professionals. 
We hope you enjoy this issue and would love to get your feedback!

YL Ventures Team
Alphabet Launches New Cybersecurity Company, Chronicle, Out Of Its X Moonshot Factory
Alphabet announced the launch of Chronicle, a new cybersecurity company that aims to give companies a better chance at detecting and fighting off hackers. Chronicle is graduating out of Alphabet’s X moonshot group and is now a standalone company under the Alphabet umbrella, just like Google. Read more on TechCrunch  »
Intel Reportedly Notified Chinese Companies Of Chip Security Flaw Before The U.S. Government
Intel is not having that great of year thus far in the face of a slew of information about security flaws in it hardware coming out — and you can add another new report from The Wall Street Journal, which suggests that Intel didn’t immediately notify the U.S. government of the issues, to that list. Read more on TechCrunch  »
Linux 4.15: Good News And Bad News About Meltdown And Spectre
Linus Torvalds released the next version of the Linux kernel and, while are things are better with the chip security problems Meltdown and Spectre, more work needs to be done. Read more on ZDNet  »
How Containers & Serverless Computing Transform Attacker Methodologies
With the rise of cloud-based systems, attackers now seek to exploit the massive quantities of data available via Web applications, microservices, and APIs. The pace of hacker innovation never slows. Now security technologies and methods must adapt with equal urgency. Read more on DARKReading »
Cybersecurity Predictions For 2018
Two-parts review of 11 trends the security community predicted to have the most impact in 2018. Read more on Infosecurity Magazine: part onepart two »
The Worst Hacks Of 2017
2017 was bananas in a lot of ways, and cybersecurity was no exception. Critical infrastructure attacks, insecure databases, hacks, breaches, and leaks of unprecedented scale impacted institutions around the world—along with the billions of people who trust them with their data. Here’s WIRED’s look back at the biggest hacks in 2017. Read more on WIRED »
Data Breach Exposes 123 Million U.S. Households
Alteryx, a marketing analytics firm, left an unsecured database online that publicly exposed sensitive information for about 123 million U.S. households. The personal details included street addresses, demographics, and finances for families, as well as information pertaining to house and auto ownership, and even to children. Read more on FORTUNE  »
Ransomware: Is Time Running Out For The Biggest Menace On The Web?
Attempts at delivering ransomware have declined, as cybercriminals move towards other forms of malware -- at least for now. Read more on ZDNet  »
AHA Calls For Greater FDA Medical Device Security Oversight
The FDA must focus on reducing regulatory burden on hospitals and health systems while also ensuring there is greater medical device security oversight, according to the American Hospital Association (AHA). Read more on HealthIT Security »
Thank you 2017, bring it on 2018!

2017 was a very successful year for the Israeli cybersecurity industry, with dozens of new startups forming, fundraising levels increasing and impressive exits serving as further proof points of Israel’s ability to innovate. We had a front row seat to the excitement, partnering with two new amazing teams (
Axonius and Medigate), supporting two of our current portfolio companies in raising Series B rounds (Twistlock and Karamba Security), and witnessing two exits from our portfolio (Hexadite was acquired by Microsoft and Seculert was acquired by Radware).
 
Looking back on 2017, we are positive that the Israeli cybersecurity industry is maturing, with more specialized entrepreneurs aiming to build sustainable companies and an influx of capital pouring into later stage companies. We believe this trend will continue in 2018 as the industry continues to evolve. 

We recently published our annual ‘2017 State of the Cyber Nation’ report in 
TechCrunch, analyzing trends in the Israeli cybersecurity ecosystem. Check out the article and accompanying infographic to learn more about what we are seeing in the space.

We are also very excited to be sponsoring this week’s 
Cybertech TLV 2018 in Tel-Aviv. We will be hosting the Cybertech Startup Competition, which will include leading international cybersecurity experts and rising Israeli startups. In addition, we have organized an exclusive Fireside Chat in Tel-Aviv with our partners ClearSky SecurityMassMutual Ventures and Momentum Cyber. Click here to view the outstanding list of speakers.

We are very grateful for a successful and prosperous 2017 and look forward to an even better 2018. Stay tuned!
CB Insights listed Medigate, a provider of cybersecurity solutions for connected medical devices, as one of the most promising cybersecurity startups in healthcare. The list was featured in CB Insights' periodic table of early-stage cybersecurity that spotlights the industry’s most promising young startups, emerging industry categories, and most active investors . Learn More »
Axonius, a provider of a unified device management platform for endpoint devices, launched its re-branded website, with exciting new messaging and content. Nathan Burke, CMO of Axonius, recently published an excellent blog post titled “8 Things We’ve Learned So Far At Axonius" with insightful observations of today’s cybersecurity market . Learn More »
Karamba Security, a provider of cybersecurity solutions for connected and autonomous vehicles, announced partnerships with several global automotive players, including US-based Honeywell, Japan-based Alpine and Germany-based IAV to create multi-layered solutions to secure cars. These collaborations were on display at the recent CES 2018 conference in Las Vegas. Learn More »
Twistlock, a provider of container and cloud native cybersecurity solutions, announced the availability of Twistlock 2.3. This latest version is the 12th major release for Twistlock's flagship product, which includes adding support for serverless functions, improvements to its Cloud Native Application Firewall, and enhancements around risk prioritization for vulnerability and compliance management.  Learn More »
Tim Mather, Chief Security Strategist, PatternEx
"Where is your voice of the customer?
Most Israeli cybersecurity start-ups are founded by young men (not enough women) with solid real-world experience, and with strong hands-on technical experience.  Many of these founders come from Unit #8200, or other similarly technology savvy IDF units. While these personnel are extremely good at understanding real-world security issues and often have very good security solutions development experience, most (Israeli cybersecurity) start-ups glaringly lack a key capability - understanding the voice of the customer. Selling to a (military) commander is by no means the same as selling to a private sector CISO.
 
CISOs do not buy technology. Instead, they buy solutions to business problems.  That is an important distinction.  As a recovering CISO, I can tell you that even if your solution is within my (budgetary) signing limits, it is still in my best political / organizational interests to ensure that my manager also has an understanding of the value of your product - i.e., how your product will advance my organization's overall information security program.
 
"Coolest" technology means nothing to my manager.  So where is your voice of the customer (e.g., a recovering CISO) to help you make that transition / translation?  Ignore this expertise at your own peril.  Series B funding anyone?


Tim Mather is Chief Security Strategist at PatternEx. He is a long-time information security practitioner, having served in senior security roles at Cadence Design Systems as CISO, Splunk as CISO, RSA Security as Chief Security Strategist, Symantec as CISO, VeriSign and Apple.

About Tim Mather »
Round: $10M Series A
Investors: JVP, NexStar Partners, 31 Ventures Global Innovation Fund, Global Brain, iAngels, DS Strategic Partners

Field: SCADA Security
Learn more »
Round: $9M Series A 
Investors: CRV, Glilot Capital Partners, Maniv Mobility

Field: Automotive Security
Learn more »
Round: $8M Series A
Investors: Team8, Innovation Endeavors 
Field: Endpoint Security

Learn more  »
Round: $6.5M Series A
Investors: K1 Investment Management, RDC

Field: Email Security
Learn more »
Round: $40M Series C
Investors: American Express Ventures, Ericsson Ventures, HSBC, JPMorgan Chase, General Catalyst, Sutter Hill Ventures, Osage University Partners, Engineering Captial

Field: Web Isolation
Learn more  »
Round: $40M Series D 
Investors: Lumia Capital, Deutsche Telekom Capital Partners, Telstra Ventures, Sozo Ventures, GV, General Catalyst, IVP, Paladin Capital Group
Field: Threat Detection

Learn more »
Round: $25M Series A 
Investors: Trident Capital Cybersecurity, JPMorgan Chase

Field: Malware Detection
Learn more »
Round: $25M Series B 
Investors: Ashar Aziz (Founder of FireEye), Dimension Data, Symantec Ventures, Bain Capital Ventures, Aspect Ventures, FireEye

Field: Cloud Security
Learn more »
Round:  $16M Series C 
Investors: Sonae Investment Management, Lightspeed Venture Partners, Redpoint Ventures, Knollwood Investment Advisory

Field: SOC-as-a-Service
Learn more »
Round: $13M Series B
Investors: Trident Capital Cybersecurity, USVP
Field: Application Security

Learn more »
Round: $8M Series C​
Investors: 406 Ventures, Ascent Venture Partners, Fairhaven Capital, VCET

Field: IoT Security
Learn more »
Round: $4.3M Token Pre-sale 
Investors: Polychain Capital, Galaxy Digital Assets Fund, FBG Capital, Compound VC, Satoshi Fund, Blockchain Korea Partners and others

 Field: Blockchain Security
Learn more »
Acquired by: Thales 
Amount: $5.43B

Field: Data Protection
Learn more  »
Acquired by: Thoma Bravo 
Amount: $1.6B

Field: Network Security
Learn more  »
Acquired by: Amazon 
Amount: Undisclosed

Field: Security Analytics
Learn more  »
Acquired by: McAfee
Amount: Undisclosed

Field: Cloud Access Security Broker (CASB)

Learn more  »
Acquired by: Allot Communications
Amount: Undisclosed

Field: IoT Security
Learn more  »
Acquired by: UST Global
Amount: $5.8M

Field: Security Automation & Orchestration
Learn more  »
Arctic Wolf Networks is a SOC-as-a-service company founded by Brian NeSmith (CEO) and Kim Tremblay (VP R&D), who previously worked together at Blue Coat Systems (prior to its acquisition by Symantec). NeSmith was the CEO of Blue Coat and Tremblay was the company’s VP Engineering. 
 
Arctic Wolf’s cloud-based CyberSOC eliminates the need for companies to build their own SOC. The service, which includes a cloud-based SIEM, collects on-prem network flow and log data, and monitors companies’ cloud-based applications and infrastructures. The solution covers: AWS, Microsoft Azure, Google Apps, Microsoft Office365, Salesforce and more. Arctic Wolf uses human security engineers as well as machine learning to analyze the data and respond to threats.


Arctic Wolf website  »

AppSec California 2018

Santa Monica, CA USA
28-31 January 2018   
Event Info »

Cybertech TLV 2018

Tel Aviv, Israel
29-31 January 2018   
Event Info »


YL Ventures is excited to partner with Cybertech and host the Startup Competition. Join us!

Cyber Security Summit: Silicon Valley

San Jose, CA USA
13 February 2018   
Event Info »

InfoSecWorld 2018

Lake Buena Vista, FL USA
19-21 March 2018  
Event Info »

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YL Ventures funds & supports brilliant Israeli tech entrepreneurs from seed to lead. Headquartered in Silicon Valley with deep roots in Israel, we manage approximately $135 million of venture capital investment funds focused primarily on cybersecurity.

Copyright © 2018 YL Ventures, All rights reserved.


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