The increase in funding was not solely due to AI, with several companies in other subsectors also raising significant amounts. Nozomi Networks and Claroty, both offering industrial and IoT security platforms, secured $100 million each. New York-based Coro, a cybersecurity platform for small and medium-sized enterprises, announced a $100 million Series D. Despite the positive Q1, it is not expected that the sector will return to its 2021 peak when it secured nearly $24 billion in funding.
Key takeaways:
- Cybersecurity startups raised nearly $2.7 billion in 154 deals in Q1 2024, a 69% increase from the previous quarter, marking the best funding quarter in three quarters.
- Three big rounds in Q1 2024 were greater than $140 million, including a $300 million fundraise by Quantinuum, a $231.5 million Series C by NinjaOne, and a $200 million Series E extension by Axonius.
- Despite the increase in funding, the cybersecurity sector is not expected to return to the heights of 2021 when it raked in nearly $24 billion.
- Not all the jump in cyber funding is due to AI, with companies like Nozomi Networks and Claroty, which offer industrial security and IoT security platforms, also raising significant funds.