After a robust comeback in the second quarter of this year, funding to cybersecurity startups tumbled 51% in Q3 as investors pulled back. Venture doll

Cybersecurity Funding Plummets 51% In Q3

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2024-10-13 15:00:06

After a robust comeback in the second quarter of this year, funding to cybersecurity startups tumbled 51% in Q3 as investors pulled back.

Venture dollars to cyber startups fell to only $2.1 billion in Q3 — a steep drop from the $4.3 billion raised by such startups in the previous quarter — per Crunchbase data.

Perhaps surprisingly, the quarter also saw the lowest amount of deal flow since Q4 2013, with only 116 announced rounds. The number represents a drop of 41% from last year and 35% from Q2.

The biggest difference between Q2 and the most recent quarter was the amount — or lack thereof — of big rounds. In Q2, cyber saw 10 rounds of $100 million or more, including Cloud security startup Wiz in May locking up the biggest cybersecurity round of the year thus far as it raised $1 billion at a $12 billion valuation.

While one could argue the Wiz round skewed the numbers for Q2, it is worth pointing out even without that deal, Q3’s dollar amount was still 36% below the previous quarter.