Cherry Tree & Associates | Q4 2023

Cherry Tree & Associates (CTA) has advised entrepreneurs, CEOs, investors, and Boards of Directors for more than 40 years. Each quarter we highlight Information Security (Info Sec) industry performance, trends, transactions and valuations. We use the CTA Info Sec Index (CISI) to represent the industry. The CISI is comprised of over 100 broad, global, public, Info Sec companies.

QUARTERLY HIGHLIGHTS

• The Info Sec industry strongly outperformed the broader market. 

• M&A and funding transactions both rebounded slightly.

• 129 funding transactions with 8 Up Rounds and 4 Down Rounds. 

• Continued downward pressure on funding.

• 2023 was a record setting year for data breaches. 

Cherry Tree & Associates is a Minneapolis-based private investment banking firm with more than four decades of transaction experience.

Important Disclosures

The information included in this publication has been obtained from public sources and is not based on private or confidential Cherry Tree information. Cherry Tree gathers its data from sources it considers reliable sources such as S&P Capital IQ, Pitchbook and GF Data. However, it does not guarantee the accuracy or completeness of the information provided within this publication. Any opinions presented reflect the current judgment of the author and are subject to change. Cherry Tree makes no warranties expressed or implied, regarding the accuracy of this information or any opinions expressed by the author. This publication does not constitute a recommendation with respect to the securities/financial instruments discussed herein, and it should not be construed as such. This publication has been prepared for informational purposes only and is not intended to provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors to address your specific situation. We undertake no obligation to update any information in this publication. Past performance should not be relied upon as indicative of future performance. The CTA Info Sec Index (CISI) is a hypothetical index and does not reflect an actual investment portfolio. Comparisons between the CISI and other indices are for illustrative purposes only. Correlations in performance for the CISI and other indices should not be relied upon as indicative of risks involved in owning or holding a portfolio of securities similar to the CISI.