What’s funding like in the cybersecurity market right now?

All funding deals in the cybersecurity market over the last 24 months

Below is the table listing all the deals. You can find our methodology at the end of this page.

If you want a deeper understanding of the market and its current dynamics, get our report covering the Cybersecurity Market.

Is cybersecurity funding actually healthier now?

Cybersecurity funding is clearly healthier today than it was a year ago: more companies are raising, more deals are getting done, and the typical financing is larger.

We counted 240 financings from September 20, 2025 to September 19, 2026, compared with 186 during the previous 12 months. The number of funded companies rose almost as quickly, from 178 to 228. Capital increased faster still, from roughly $6.64 billion to at least $10.04 billion.

The improvement goes deeper than the headline total. Median round size increased from $14 million to $16.5 million. Funding excluding deals above $50 million rose 29.7%, while funding excluding deals above $100 million still grew 25.5%. At the same time, first financings became more common and early-stage deals took a larger share of the market.

The market is also consistently busier. Across twelve aligned one-month windows, median monthly funding rose from roughly $490 million to $748 million and average deal activity increased from 15.5 to 20 financings per month. We are seeing a higher baseline of activity across the year, with the giant rounds sitting on top of it.

A few areas look less convincing. Strategic investors now participate in a smaller percentage of deals, and companies with observable previous rounds are generally taking longer to come back for follow-on funding. Those weaknesses are real, but much narrower than the improvement in overall funding breadth.

Metric	Current 12M	Previous 12M	Change
Deals	240	186	+29.0%
Unique companies	228	178	+28.1%
Total capital	≥$10.04B	~$6.64B	~+51%
Capital excluding >$50M	$3.33B	$2.57B	+29.7%
Capital excluding >$100M	$4.83B	$3.85B	+25.5%
Median round	$16.5M	$14.0M	+17.9%
First-financing share	32.5%	30.6%	+1.9 pp
Early-stage deal share	68.3%	64.0%	+4.4 pp
Strategic participation	16.3%	19.9%	-3.6 pp
Top-10 capital concentration	43.0%	43.5%	-0.5 pp

Would cybersecurity funding still be up without the biggest rounds?

Cybersecurity funding would still be growing strongly without the megarounds, which makes the current rebound much more convincing.

The $1 billion-plus Keyfactor investment, Saviynt's $700 million financing, Cyera's $600 million round and several other huge deals obviously lift the total. Current funding is also more exposed to $100 million-plus transactions: those deals now provide 51.8% of all capital, up from 42.0% previously.

Strip them out, though, and the market still moves in the same direction. We calculate $4.83 billion of funding from deals of $100 million or less, compared with $3.85 billion a year earlier. Using an even tighter $50 million cutoff leaves $3.33 billion versus $2.57 billion.

The concentration numbers are surprisingly stable too. The ten largest financings account for 43.0% of current capital, compared with 43.5% in the previous period. More huge rounds are happening, but plenty of money is also flowing into companies just below that top tier.

The median financing adds another check. It increased 17.9% across 240 deals, something one or two blockbuster rounds cannot produce.

As of now, megarounds have made an already stronger cybersecurity market look even stronger.

Are more cybersecurity companies actually getting funded now?

Cybersecurity funding is reaching far more companies now, with 50 additional businesses raising capital over the latest 12 months.

We found 228 funded companies, up from 178. Deal count rose by 54 at the same time, from 186 to 240, so the increase in activity closely tracks the increase in companies.

That relationship tells us a lot about the breadth of the recovery. A market dominated by the same small group repeatedly returning for capital would show deal growth running well ahead of company growth. Here, the two are moving almost together.

Multiple financings did become a little more common. Twelve companies raised more than once during the current period, versus seven previously. But that still represents only 5.3% of funded companies.

For an entrepreneur looking at cybersecurity fundraising today, the market is financing a much wider set of companies than it did one year earlier.

Are new cybersecurity startups still getting funded, or are existing winners taking the money?

New cybersecurity startups are getting funded more often, while established companies still absorb close to 90% of all invested dollars.

First financings jumped from 57 to 78, an increase of roughly 37%. Their total capital rose even faster, from $512 million to $948 million, and the median first financing moved from $7 million to $8 million.

That is a meaningful improvement at the entry point. Twenty-one additional companies secured their first financing in our dataset, and collectively those companies attracted almost twice as much money. More first-time companies getting funded, for nearly twice the money, shows what investors are backing, which we follow in our market report about cybersecurity.

Follow-on rounds operate on a very different scale. Existing funded companies raised about $9.05 billion during the current period, and their median round increased from $20 million to $25 million.

Investors are creating more new funded cybersecurity companies while reserving the really large checks for businesses that have already been through at least one financing cycle.

Both parts of the market are healthier, but established winners have benefited much more in dollar terms.

Is cybersecurity funding moving toward earlier-stage startups?

Cybersecurity funding has moved noticeably earlier, even with a long list of giant growth rounds grabbing attention.

Early-stage deals increased from 64.0% to 68.3% of all financings. Their share of capital made an even bigger jump, from roughly 22.6% to 31.5%.

Later-stage activity moved the other way. Those deals fell from 29.0% to 22.5% of the market, and Series D or later financings declined from ten to six.

The biggest change sits between seed and mature growth funding. Seed remains active, with 88 rounds versus 72, but the median stayed at $7 million. Series A is where investors have dramatically increased both the number and size of their bets.

Today's cybersecurity market has a slightly unusual shape: plenty of startup creation, aggressive financing once young companies clear their first hurdles, and a separate group of proven businesses capable of raising hundreds of millions.

Stage	Current deals	Previous deals	Current median	Previous median
Seed	88	72	$7M	$7M
Series A	76	47	$25M	$17M
Series B	28	32	$45M	$42.5M
Series C	8	4	$85M	$90.5M
Series D+	6	10	$200M	$225M
Growth Equity	12	8	$23.5M	$40.5M
Unknown	22	13	$11.2M	$8M

Why is Series A suddenly so strong in cybersecurity?

Series A is currently the fastest-changing part of cybersecurity funding, with deal count up 62% and the median round jumping from $17 million to $25 million.

We counted 76 Series A financings, compared with only 47 in the preceding period. That growth is more than twice as fast as the overall increase in cybersecurity deals.

The rise in round size is just as interesting. A $25 million median means the typical successful Series A company is now raising roughly $8 million more than it did a year earlier. Seed rounds have not seen anything comparable: their median stayed fixed at $7 million.

External evidence helps explain why investors may be comfortable putting more money behind companies at this point in their development. J.P. Morgan's recent work on cybersecurity and AI says enterprise buyers increasingly expect measurable outcomes, deep AI integration and products that can move beyond detection toward remediation. Once a young security company proves it can meet that bar, investors have a reason to finance expansion quickly.

The pattern looks like a larger cohort of young cybersecurity companies reaching real early validation and getting serious money to scale it.

Are cybersecurity rounds getting bigger across the market?

Cybersecurity rounds are getting bigger overall, but the strongest change is happening in the $20 million to $50 million range rather than only at the very top.

The $5 million to $20 million bracket used to account for almost half of all deals. Its share has dropped from 46.8% to 36.3%. Meanwhile, $20 million to $50 million financings rose from 21.5% to 28.3% of activity.

Very small rounds are more common too. Deals below $5 million gained nearly four percentage points of market share, which fits with the increase in new company formation.

At the top, the number of rounds above $100 million almost doubled, from nine to 17. Rounds between $50 million and $100 million were roughly stable as a proportion of all deals.

So today's market is more spread out: more small startup rounds, a much thicker $20 million to $50 million layer, and more very large financings.

Deal-size measure	Current	Previous	Change
<$5M share	18.3%	14.5%	+3.8 pp
$5M–<$20M share	36.3%	46.8%	-10.5 pp
$20M–<$50M share	28.3%	21.5%	+6.8 pp
$50M–<$100M share	8.3%	8.6%	-0.3 pp
$100M+ share	8.8%	8.1%	+0.7 pp
Number of >$50M rounds	37	25	+48%
Number of >$100M rounds	17	9	+89%
Median round	$16.5M	$14M	+17.9%

Which cybersecurity category has gained the most momentum?

Identity Security is the clearest standout in cybersecurity funding right now, with more deals, larger typical rounds and a huge increase in capital.

We counted 40 Identity Security financings, up from 27. The median increased from $15.8 million to $21.3 million, while total capital rose from $569 million to roughly $2.74 billion. Identity security attracting far more money raises the question of which customer problems are real enough to pay for, which we look at in our report covering the cybersecurity market.

Keyfactor and Saviynt account for a large part of that jump. Keyfactor announced a $1 billion-plus investment, while Saviynt raised $700 million. Even after taking those two deals away, Identity Security still attracted about $1.04 billion, far above the previous period.

Recent company results make that funding surge easier to understand. Keyfactor has since reported more than $200 million in annual recurring revenue, ARR growth above 35% and profitable operations. Saviynt has reported more than $300 million in ARR, bookings growth above 80% and 96% customer retention. These are large, established businesses showing investors that identity security around machines, workloads and AI agents can support serious commercial scale.

Application Security is also healthy. Deal count rose from 58 to 75 and the median jumped from $10.5 million to $16.5 million. Its share of market dollars fell only because other categories, especially identity, grew faster.

Cloud Security went in a different direction. Deals fell from 25 to 21 while the median increased from $15 million to $25 million, suggesting investors are writing larger checks to a narrower group of companies.

Category	Deals current / previous	Capital current / previous	Median current / previous	What changed
Identity Security	40 / 27	$2.74B / $0.57B	$21.3M / $15.8M	Much broader and much better funded
Application Security	75 / 58	$1.85B / $1.64B	$16.5M / $10.5M	More deals and larger rounds
Managed Security Services	48 / 34	$1.34B / $1.14B	$11.5M / $15M	More deals, smaller typical checks
Network Security	36 / 25	$1.68B / $1.23B	$15M / $17M	More activity, similar round economics
Cloud Security	21 / 25	$1.39B / $1.24B	$25M / $15M	Fewer companies getting larger rounds
Endpoint Security	20 / 17	$1.03B / $0.82B	$28M / $29M	Fairly stable

Where is cybersecurity funding getting more selective?

Cybersecurity investors look most selective in Cloud Security and parts of the follow-on market, where bigger checks are going to fewer or more proven companies.

Cloud Security gives us the cleanest example. Aggregate capital still increased, but deal count fell 16%. The median round moved sharply higher at the same time. Investors are clearly willing to put significant money into the category, yet fewer companies are getting through.

Managed Security Services shows almost the opposite pattern. Deals rose from 34 to 48, while the median fell from $15 million to $11.5 million. Money is reaching more companies there, but investors are generally committing less per transaction.

Application Security sits somewhere in between. It gained deals, dollars and median round size, although its share of total cybersecurity capital slipped as Identity Security accelerated much faster.

A blanket “investors are more selective” take would be too crude. Current selectivity varies heavily by category. Some parts of cybersecurity are opening up to more companies, while others are concentrating larger amounts behind fewer names.

Is Europe becoming a real cybersecurity funding hub?

Europe has become a much more important source of cybersecurity deals, with financings more than doubling from 25 to 51.

European funding also climbed from roughly $356 million to just over $1 billion. Exein's $270 million round is a big contributor, although removing it would still leave Europe far ahead of the preceding 12 months.

The activity is geographically broad. We found financings across the UK, France, Italy, the Netherlands, Spain, Germany and several smaller European markets. That is a healthier pattern than one giant transaction making an entire region look stronger.

Exein is a good example of what investors are financing in Europe these days. The Italian company raised $270 million at a $1.7 billion valuation to expand in the US and Asia-Pacific while building cybersecurity for AI-enabled physical systems. Exein says its technology now sits across a network of roughly two billion devices and sees about 5,000 new non-repetitive attacks a week.

Regulation is adding another layer of demand. The EU Cyber Resilience Act's incident and vulnerability reporting obligations are now operational, while NIS2 continues to expand cybersecurity requirements across critical sectors. NIS2 implementation remains uneven between countries, so regulation is better treated as part of the backdrop than as a neat explanation for the funding increase.

North America still dominates the big-money end of the market. Its share of deals fell, while its share of invested capital increased. Europe is catching up much faster on company formation and deal activity than on average financing size.

Are more investors entering cybersecurity now?

More investors are participating in cybersecurity funding today, and the market has become slightly less dependent on repeat investors.

We identified 240 unique disclosed investors in the current period, up from 195. Unique lead investors increased from 163 to 203.

Repeat activity has grown in absolute terms, but it has lost a little weight inside the larger market. Investors appearing more than once accounted for 37.4% of disclosed investor participations, down from 40.0%.

That combination fits what we see on the company side. Fifty more companies received funding, while the number of unique investors rose by 45. The funding ecosystem has expanded on both sides of the table.

There are still familiar names everywhere, Sequoia, Bessemer, Battery Ventures, Team8, Index, Cyberstarts, Notable Capital, Bain Capital Ventures, Accel and Ballistic Ventures all appear repeatedly, but they are operating alongside a larger pool of other investors.

Cybersecurity currently has more investors chasing a larger set of companies, rather than a small club recycling capital among the same handful of startups.

Are corporate investors becoming more important in cybersecurity?

Corporate and strategic investors are becoming less important as a share of cybersecurity funding, even though their typical deal has become larger.

We counted 39 strategic-backed financings, barely above the previous period's 37. Total cybersecurity deal activity, meanwhile, increased by 29%. Strategic participation consequently fell from 19.9% to 16.3%.

The median strategic-backed round increased from $19.3 million to $25 million, so corporations and industry players are still showing up around substantial deals.

Network Security stands out as an exception. Strategic-backed transactions in that category rose from four to 12. Series A is another active area, accounting for 17 of the 39 current strategic-backed deals.

Across cybersecurity as a whole, though, the current expansion is being driven much more by the wider venture and growth-investment market than by an influx of corporate capital. Whether the wider venture market keeps driving this expansion is one of the things that decides how long growth lasts, which we follow in our report on cybersecurity.

Are cybersecurity companies raising again faster now?

Cybersecurity companies are not coming back for follow-on funding faster in the deals where we can observe a previous round.

The median interval between observable rounds increased from 9.4 months to 12.8 months. Only 42.4% of current follow-ons happened within 12 months of the previous observed financing, compared with 65.4% in the earlier period.

Round step-ups have cooled a little too. The median current round is 2.08 times the size of the previous observed financing, compared with 2.43 times before. Just over half of current observations exceed a 2x step-up, versus about two-thirds previously.

Those comparisons deserve less confidence than our deal-count or round-size findings. We can reconstruct previous rounds for only 59 of the 160 current follow-ons and 26 of the 129 earlier follow-ons. The historical period is especially vulnerable to missing older rounds that fall outside the database.

For now, the useful conclusion is narrow: faster recycling of the same companies does not explain the surge in cybersecurity deal activity.

Do cybersecurity startups need more proof to raise money now?

The biggest cybersecurity checks are increasingly going to companies that can show real commercial scale, although we cannot prove that every startup now faces a higher funding bar.

Look at several of the largest recent rounds. Keyfactor crossed $200 million in ARR and says it remains profitable. Saviynt passed $300 million in ARR. Armis had already exceeded $300 million in ARR when it closed its $435 million pre-IPO financing and said revenue was growing by more than 50%.

Horizon3 offers another recent example. The company raised $250 million at a valuation above $2 billion after reporting 120% year-over-year ARR growth, more than 7,000 customers and 310,000 autonomous security tests executed in production.

Dream raised $260 million after reporting nearly $300 million in total contract value since commercial operations began in late 2024. Exein paired its $270 million financing with a claimed deployment footprint of roughly two billion devices.

Those are very different businesses, but the pattern is hard to miss. Investors are willing to write enormous cybersecurity checks when companies can point to revenue, customers, contracts or large-scale production deployments.

We have less visibility lower down the market. Our research does not give us standardized revenue, customer or milestone data for every financing, so extending that conclusion to every seed or Series A company would go beyond the evidence.

What are cybersecurity companies raising money to do now?

Large cybersecurity rounds are increasingly financing global expansion, product expansion and commercial scale on top of businesses that already work.

Keyfactor said its $1 billion-plus investment would support product innovation, geographic expansion, team growth and acquisitions. The company has since announced plans to expand its identity capabilities around AI agents and cloud workloads.

Saviynt described its $700 million financing as growth capital for product development, AI capabilities, platform integrations and expansion. Its more recent launch of Zuma shows where that product roadmap is going: governing AI agents, non-human identities and enterprise AI access.

Horizon3 plans to use its $250 million round to expand sales and channels, enter markets including Singapore and Australia, and accelerate autonomous attack-and-defense products. Exein's $270 million financing is similarly tied to US and Asia-Pacific expansion and further product development.

Cyera's recent capital raises point in the same direction. The company raised $400 million and then another $600 million within six months while expanding from data-security posture management into identity, data loss prevention and agentic AI security.

The common thread is scale. Many of the largest raises currently fund companies that have moved beyond building one security product and are trying to become broader platforms, enter more countries, deepen distribution or acquire adjacent capabilities.

Smaller rounds will naturally look different, and our dataset does not contain a standardized use-of-funds field for every deal. The scaling pattern is strongest among the companies absorbing the largest checks.

Is AI really changing cybersecurity funding right now?

AI is already changing where cybersecurity investors put money, especially around identity, data security, autonomous defense and the security of AI agents.

One of the clearest outside benchmarks comes from J.P. Morgan's recent cybersecurity analysis using PitchBook data. Through May 2026, 72% of U.S. cybersecurity venture deals involved companies also classified as AI-enabled, up from 36% in 2019. J.P. Morgan also highlighted non-human identity governance as one of the fastest-growing security areas as machine identities and AI agents multiply.

Our own funding work points in the same direction. Identity Security had the strongest category acceleration. Cyera raised $400 million and then $600 million while pushing deeper into enterprise AI security. Horizon3 raised $250 million around autonomous security validation. Dream raised $260 million around sovereign AI and cyber defense. Exein raised $270 million to secure AI-enabled physical systems. Security validation, sovereign AI defense and AI-enabled physical systems are at different stages of maturity, which we sort in our cybersecurity market report.

The commercial numbers make the trend harder to dismiss as pitch-deck language. Saviynt has crossed $300 million in ARR. Keyfactor has passed $200 million. Cyera says revenue grew more than 3.4 times before its $400 million financing. Horizon3 reported 120% ARR growth before raising its latest round.

AI is changing the actual attack surface too. More autonomous software means more machine identities, more access decisions, more sensitive data moving through models and agents, and security systems that increasingly need to respond at machine speed.

Investors are following those problems with real money. Today, the AI effect in cybersecurity shows up in category rotation, product roadmaps, customer demand and financing size at the same time.

What really changed in cybersecurity funding over the last 12 months?

The biggest change is breadth. We counted 50 more funded cybersecurity companies and 54 more financings than in the preceding 12 months. The current expansion reaches far beyond the handful of companies raising $250 million, $600 million or $1 billion.

The second major change is happening around Series A. Young cybersecurity companies are raising much more money once they get beyond seed: Series A deal count increased 62% and the median jumped from $17 million to $25 million. Early-stage funding has become a much bigger part of the market even while giant growth rounds dominate the news.

Large deals have still changed the shape of cybersecurity funding. Transactions above $100 million now provide more than half of all invested capital. Yet top-10 concentration barely moved, and outlier-adjusted funding still grew by roughly a quarter or more. Today's market has a much thicker layer of well-funded companies below the very largest deals.

Identity Security has the strongest category momentum. Keyfactor and Saviynt make the headline numbers spectacular, while the category remains well ahead of last year even without them. Rapid growth in machine identities and AI agents gives investors a concrete reason to pay attention to identity infrastructure now.

Europe is becoming much more active, while North America continues to win on financing size. European deal count more than doubled, and the activity spans several countries. New EU cyber rules are also moving from legislation into day-to-day compliance, adding pressure for companies to secure software, devices and critical infrastructure.

Finally, the market is rewarding proof at the top. Keyfactor, Saviynt, Armis, Horizon3, Dream and Exein all paired major financings with concrete evidence of revenue, customers, contracts or deployed technology. That does not tell us the funding threshold for every young startup, but it does tell us what currently unlocks the biggest checks.

The headline that misses the story would simply say cybersecurity funding jumped about 51%. The more useful conclusion is that cybersecurity now has more funded companies, a much stronger Series A layer, broader investor participation and a fast-moving identity and AI-security theme, while the largest proven companies have gained access to dramatically more capital.