Cybersecurity Funding Remains High Even As Venture Cools Off
Funding to venture-backed cybersecurity startups continues at an impressive clip—although significantly off the record high set last quarter.
Venture dollars invested into cyber startups hit almost $6 billion in the first quarter, according to Crunchbase data. That marks a nearly 50 percent increase from the first quarter of last year—and would put it on pace to break the all-time high for one year set last year with more than $20 billion poured into the space.
Deal flow also remained on par with the same period last year, with 189 funding rounds being announced compared to 179 for the first quarter of last year, according to Crunchbase.
However, the first quarter marks a significant decline from the almost $8.2 billion invested last quarter—in itself a record high. The fourth quarter of last year also saw a massive 232 deals announced.
The first-quarter numbers also show some peaks and valleys. While January proved strong with about $1.9 billion invested, February saw a huge spike to $2.7 billion. However, March dipped to $1.3 billion.
Nevertheless, the first quarter as a whole appears strong despite some headwinds being seen in the venture market. There were 17 nine-figure rounds that went to cybersecurity startups last quarter, including three rounds of a quarter-billion dollars or more:
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