Larger deals boost cybersecurity funding to 2-year peak in Q2

TLDR:

• Venture capitalists invested $4.4 billion in cybersecurity startups in Q2 of 2024.
• This marks the strongest funding quarter for the sector since 2022 and represents a 144% year-over-year increase.

Article Summary:

Venture capitalists poured $4.4 billion into cybersecurity startups in the second quarter of 2024, marking the sector’s strongest funding quarter since 2022. This surge in funding represents a 144% year-over-year increase and a 63% increase from the previous quarter. While the number of deals closed during this period declined, larger investments were made in more mature companies, with over 10 rounds closing at $100 million or more in Q2. Notable funding rounds included Wiz raising $1 billion, Cyera raising $300 million, and Island closing a $175 million funding round. The first half of 2024 saw cybersecurity startups raise a total of $7.1 billion, indicating sustained multiple-quarter funding growth for the sector. Although the number of deals decreased compared to the same period in 2023, the total amount of investments signifies a strong interest in cybersecurity startups and their potential for growth.