After subsequent falls of the fall, the financing of projects for cyber security startups increased in the first quarter-I could see much more investments after the best acquisition of a private company supported by the undertaking.
Complete financing for cyber security startups supported by VC exceeded $ 2.7 billion in the first quarter, on Crunchbase data. This is a 29% increase compared to the last quarter of 2024 and only a small decrease from $ 2.8 billion collected in the same quarter of last 12 months.
However, the transaction flow has dropped significantly. In the first quarter there have been only 139 contracts, which is a 31% decrease from over 200 accomplished in the first quarter of 2024 and barely fell from over 150 announced in the fourth quarter of 2024.
Big Exit Help?
The increased variety of dollar occurred in the same quarter as the best takeover of the company supported by the project: Google parent AlphabetPlanned purchase of a unicorn safety in the cloud Wizard for $ 32 billion.
It is easy to assume that a huge output will attract much more eyes of investors – and check books – to cyberspace.
“I am sure that investors analyze how they can repeat the success of the visa – and thoroughly assess what key factors distinguish him,” he said Umesh PadvalManaging Director in Thomvest Ventures which specializes in cyber, cloud and AI infrastructure.
Padval said that one significant trend interest in this space is artificial intelligence, and more specifically Agentic AI.
“This can do this specialists in cyber security more effective, improving surgery and shortening time to solve critical hats in operating centers of enterprise security,” he said. “Automation becomes a key solution in these environments.”
Padval expects the sector to see the equalization of the variety of startups, but the increase in recent startups of the cyber security platform along with recognized firms expanding their offer, ultimately creating larger, more dominant players.
In the last quarter, large rounds of growth to highly valued firms have definitely appeared.
In February Ninionewhich ensures management, security and monitoring of the end point, collected $ 500 million in the C series extensions with a valuation of $ 5 billion – over 12 months ago, over 12 months. The company said that recent financing appeared in separate tranches led by Iconiq growth AND Google‘S Capital.
Then last month the developer of the company from Dallas Island collected the E $ 250 million series run by Coating management with a valuation of $ 4.8 billion and cybernetics based in Boston Aura – which developed a tool for family cybersecurity – closed $ 140 million in capital and a debt of $ 1.6 billion in the G series run by Ten eleven projects AND Madrone Capital Partners.
Earlier stage
Even with some of those larger rounds and a decrease in flow, Writer offer – Elder partner and director of the Israeli company Cyber Venture Company Yl ventures -he said that the rounds at an early stage are ongoing at a crazy pace, while wider market uncertainty make investors more cautious in later stages.
“We are witnessing rounds of competitive A and B series for companies showing clear market adhesion,” he said.
Another trend that Schreiber said that is growing is “saturation of the Cybernetic Safety Poddedsman” – where most of the primary funds already have many security investments in their portfolios, creating a narrower field of high -quality investors, because funds actively avoid the overlap of the portfolio.
It seems whether or anything can limit funds for cybersecurity of the shoot, may very well be built in the first quarter – despite significant global challenges.
However, in the case of possible brewing of business wars, geopolitical tensions and some VC already warn about recession and possible withdrawal, this rush will likely be tested.
Methodology
Cybersecurity is defined by the network security industries, cloud safety and cyber security, according to Crunchbase. Most of the announced rounds are represented in the database; However, there could also be a slight delay in rounds reported at the end of the quarter.