WSJ Article Bromium 3.29.

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http://blogs.wsj.com/venturecapital/2016/03/28/bromiums-post-money-valuation-issliced-in-half-in-down-round/?mod=ST1

Bromiums Post-Money Valuation Is Sliced in Half in Down Round

Cybersecurity startup Bromiums post-money valuation was sliced in half, down to $242.27 million from a $491.6
million post-money valuation in its previous round, according to data from industry tracker Pitchbook.

Cybersecurity startup Bromium has raised $40 million in funding at a down round to its
previous valuation, a move that comes as the sector is beginning to feel the pinch of
changing market dynamics.
Bromiums post-money valuation was sliced in half, down to $242.27 million from a
$491.6 million post-money valuation in its previous round, according to data from
industry tracker Pitchbook, VentureWire has learned.
Chief Financial Officer Earl Charles, whose hiring was announced on Thursday,
declined to comment on the valuation or terms of the funding.
After venture capital funding increasingly poured into cybersecurity in recent years,
analysts and investors are now predicting a year heavy with mergers and acquisitions
for many companies.
Peter Firstbrook, a Gartner research vice president, said the cybersecurity sector is
crowded, with all companies competing for the same wallet share. Mr. Firstbrook said
the company has good brand recognition, but competitors like Cylance are attracting
more customers because those are easier for companies to deploy.
Its a little heavier than other solutions, but that doesnt mean its insurmountable, Mr.
Firstbrook said.
Bromiums $40 million Series D round was priced at $1.22 per share, compared with
$2.95 per share in its previous financing round, according to data provider Pitchbook.
Chief Technology Officer and co-founder Simon Crosby was critical of the amount of
venture funding that has moved into the security sector.
Every plausible idea is funded, a bunch of stuff just needs to go away, Mr. Crosby said.
The venture world has been overly ambitious.
Mr. Crosby declined to comment on Bromiums valuation because he said the
company has no desire to participate in the unicorn debate, referring to the increased
attention to startups that have raised more than a $1 billion valuation.
The company set out to protect systems by isolating specific tasks that could damage a
system.
Founded in 2011, Bromium has raised about $115 million to date. The company added
Silver Lake Waterman as an investor, who declined to comment on the round. Existing
investors included Andreessen Horowitz , Ignition Partners , Highland Capital Partners,
Intel Capital , Lightspeed Venture Partners and Meritech Capital Partners.
Read more about Bromium and the companys recent personnel changes at
VentureWire.