Cyber venture capital funding on pace to hit four-year low
19-Oct-23
Crunchbase data released Thursday show that venture capital investments in cybersecurity startups are declining, with less capital raised and fewer agreements than the previous year. Cybersecurity companies raised about $1.9 billion in the third quarter, a 30% decrease from the $2.7 billion raised the previous year. The 153 transactions in the quarter also represented a 17% year-over-year decrease.
A paucity of large, late-stage agreements is largely to blame for the sector’s cumulative squeeze on VC capital. Crunchbase tracked five deals worth at least $75 million in the third quarter, while there were over a dozen rounds of the same magnitude a year ago. The most recent VC activity in cybersecurity indicates a pragmatic phase in an oversaturated business.
