Cybersecurity firms experienced a notable increase in funding in 2024, despite a decrease in the number of funding rounds. According to a report by Pinpoint Search Group, $9.5 billion was raised across 304 funding rounds, which represents a 9% year-over-year growth from $8.7 billion in 2023. This increase in total funds raised occurred despite a 16% drop in the number of rounds tracked, with 346 rounds recorded in the previous year. Early-stage funding rounds accounted for the majority of the volume, making up 59% of the total funding, while late-stage rounds, although only comprising 16% of the total number, were responsible for more than half of the funds raised.
In the first quarter of 2024, cybersecurity companies raised a total of $2.3 billion across 77 funding rounds, with notable investments in firms like Cyera ($300 million) and Axonius ($200 million). The second quarter saw a significant spike in funding, reaching $3.3 billion across 98 rounds. During this period, the cybersecurity firm Wiz secured a $1 billion funding round, bringing its valuation to $12 billion. Other prominent funding rounds included Island ($175 million), Corelight ($150 million), and Huntress ($150 million), signaling a strong mid-year performance.
The third quarter of 2024 saw a decrease in total funding raised to $2.15 billion, although 73 funding rounds were tracked. The largest amounts raised during this period were from companies like Kiteworks, which secured $456 million, and Abnormal Security with $250 million. Smaller rounds also included notable investments in companies like Vanta Security ($150 million) and Chainguard ($140 million). The decline in total funding compared to the previous quarter reflected a trend of reduced funding activity in the later months of the year.
In the final quarter of 2024, funding dropped further to $1.7 billion across 56 rounds, with Cyera again securing $300 million, Armis raising $200 million, and other firms like Halcyon and Upwind each raising $100 million. Pinpoint’s report also tracked 79 mergers and acquisitions (M&A) deals in 2024, though this figure contrasts with the 400 M&A deals tracked by SecurityWeek. Despite the decrease in funding volume, the cybersecurity industry remained active, with significant investments and strategic mergers contributing to the sector’s ongoing growth and resilience.
