Cybersecurity companies raised $2.3 billion in funding in the first quarter of 2024, according to cybersecurity recruitment firm Pinpoint Search Group.
According to Pinpoint’s Cyber Security Vendor Funding Report for Q1 2024, the company tracked 77 funding rounds, roughly the same as in the first quarter of 2023.
However, the total investment amount is 20% smaller compared to the $2.9 billion raised in Q1 2023. On the other hand, companies raised more than in Q2 and Q4 of 2023 and the same as in Q3 2023.
Of the 77 rounds tracked by Pinpoint last quarter, 32 were seed rounds, followed by Series A (18) and Series B (9) rounds.
In terms of the amount raised, $682 million were raised in growth funding, followed by Series E ($410 million), Series A ($375 million) and Series B ($320 million).
Pinpoint highlighted that a total of $1.4 billion was raised across 42 funding rounds in March alone. This was the first time the monthly total exceeded $1 billion since February 2023.
In addition, late-stage rounds (Series C and higher) made some headway in the first quarter — both in terms of transaction volume and funding amount — compared to most of 2023, the company said.
“Despite the year-over-year dip in funding not appearing favorable, it’s important to consider the nuances,” commented Mark Sasson, founder and managing partner at Pinpoint Search Group. “2023 posed considerable challenges for the cybersecurity community and the broader tech landscape. With the rapid rise in interest rates, securing funding became increasingly difficult. As shown in the charts in our report, Q1 2023 marked the last positive quarter before venture capital funding began its downward trend.”
However, Sasson added, “Investments in later rounds early in the year are a positive indicator for those in the cybersecurity field. A significant portion of our industry’s employment comes from established companies, the recipients of these late-stage funds. Should this pattern persist, we might avoid the widespread layoffs experienced in 2023.”
Some of the biggest funding rounds in Q1 were announced by Silverfort ($116 million), Extrahop ($100 million), Bugcrowd ($102 million), Coro ($100 million), Axonius ($200 million), Nozomi ($100 million), and Claroty ($100 million).
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