Why four security companies just sold for $1.5B

If you’re thinking about starting a technology company, you may want to consider focusing on cybersecurity.

Last week was an incredible M&A whirlwind with four security companies getting acquired over just a three-day period:

• On Tuesday, FireEye bought Verodin, a five-year-old startup that helps measure the effectiveness of your cybersecurity defenses for $250 million.
• On Wednesday, Palo Alto Networks entered the fray, buying not one, but two Israeli security startups. The big prize was container security company Twistlock for $410 million. It also snagged serveless security company PureSec. Reports in Israeli media pegged that deal at between $60 and $70 million.
• If that wasn’t enough for you, private equity firm Insight Partners bought 10-year old threat intelligence company, Recorded Future for $780 million.

That’s more than $1.5 billion changing hands for those of you keeping score at home. If you take a look at the four firms, the one common denominator was that each one was covering a different aspect of cybersecurity. Two were looking at more operational tasks, while the two companies that Palo Alto Networks grabbed were aimed squarely at modern developers using containers and serverless technologies.