Deals rise, funding drops

In the second quarter of this year cybersecurity companies received equity funding of USD 1.8 billion, a decrease of approximately 60% from the average during 2020 to 2021. Interestingly, the number of deals rebounded to 177 in the second quarter, up 124 in the first quarter of this year. This is similar to other sectors where we have seen more but smaller deals, predominantly taking place in later stages of startups. However, there are more deals in the earlier stages, that on average have lower deal sizes. This could indicate that the next wave of innovative startups is being funded, some of which will be successful and reach public markets.

Source: CB Insights (September 2023).