After a funding boom peaking in 2020-2021, the cybersecurity venture capital market is looking at a new cycle of more stable investment. While customers continue to seek new solutions and the IPO window is largely closed, there are still many exit opportunities, especially with AI’s hand in the game.
If you want to join the recovering investment party that shakes the cybersecurity industry, a strong investor outreach strategy is a must-have for your fundraising journey. To help you find your investors, we’ve created a guide packed with:
Strategic insights into the cybersecurity VC scene.
Top cybersecurity investors;
The most active cybersecurity venture capital funds;
Recent cybersecurity startup exits;
Notable accelerator programs, summits, and conferences in cybersecurity;
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Most active cybersecurity venture capital funds
In our experience, these top picks can help you land big cash, facilitating your cybersecurity startup’s growth:
ff Venture Capital, an early-stage fund with a strong portfolio in cybersecurity, invests in companies like Authorea and Distil Networks.
SixThirty specializes in the fintech and cybersecurity industries, boasting over 172 completed investments and 27 companies successfully exited.
NGP Capital is an international VC firm with offices in the US, Europe, and China. NGP focuses on four verticals: cybersecurity, edge cloud, digital industries, and digital transformation.
Glilot Capital Partners actively funds early-stage enterprise software, AI, and cybersecurity startups.
Recent cybersecurity VC exits
The number of players has indeed shrunk from 31 deals in Q1 2022 to 13 deals in Q1 2023 among exited cybersecurity startups, but even now some companies have been able to benefit from M&A.
In March 2023, Cisco shelled out $200 million to acquire Lightspin, an Israeli firm specializing in Kubernetes security. Rapid7 also made moves, dropping $38 million in cash and stock to snag Minerva Labs, another Israeli cybersecurity startup focused on endpoint security. Meanwhile, Hewlett Packard Enterprise picked up Axis Security, a California-based cloud security company, for just under $500 million.
Now, 2024 has two big M&A deals on the horizon. Akamai Technologies is close to sealing a $500 million deal to buy Noname Security. At the same time, Thoma Bravo is taking DarkTrace private for a whopping $5 billion, with the transaction set to close by the end of the year.
Cybersecurity incubators and accelerators
If your interest is more in mentorship, resources, networking and not just money, you should look into cybersecurity accelerator and incubator programs.
MACH37 is a 12-week cybersecurity accelerator program based in Virginia, the US. It helps startups develop and scale their cybersecurity solutions through mentorship, access to investors, and industry connections.
Wise Guys Cyber runs a 3 to 6-month program under Startup Wise Guys, which offers intensive mentorship, industry expertise, and cybersecurity investor connections.
OXO Cybersecurity Lab is a cybersecurity incubator which primarily targets startups in the e-health, smart city, smart home, fintech, IoT, and medtech sectors.
CyRise is an Australia-based cybersecurity accelerator that helps startups scale globally.
Cybersecurity summits
Visit cybersecurity summits to gain insights from cybersecurity industry experts, stay updated on the latest trends and technologies, and network with potential partners, investors, and customers.
The Annual Billington Cybersecurity Summit is a two-day event usually held in the fall in Washington, D.C, the US. Attendees have an opportunity to learn about key cybersecurity issues, such as government policy, cyber threats, emerging technologies and industry best practices. There are keynote guest speakers from government, military and industry leaders, panel discussions and networking opportunities.
The Southeast Cybersecurity Summit has a coverage on a broad area of interest with talks and discussions on cyber threat intelligence, risk management, data protection and compliance. This annual conference is held in the US and participants attend technical sessions, panel discussions and workshops.
The ACC Cybersecurity Summit is organized by the Association of Corporate Counsel and travels to various locations across the US each year. The speakers typically cover the following topics there: legal and regulatory challenges, incident response, data privacy, and cyber risk management.
Cybersecurity conferences 2024
If you plan to attend cybersecurity conferences in 2024, here are some major events to consider.
- RSA Cybersecurity Conference
Event Type: Customary annual event.
Location: San Francisco, California, the US.
Coverage: Threat intelligence, data security, and risk management. The conference provides hands-on training and deep technical knowledge. It is one of the major and longest running cybersecurity conferences.
- Minorities in Cybersecurity Conference
Event Type: Annual conference.
Location: Dallas, Texas, the US.
Coverage: Leadership for minority, women and nonbinary professionals. Only 150 participants maximum can attend this conference.
- International Conference on Cyber Warfare and Security (ICCWS)
Event Type: Annual conference.
Location: Varies
Coverage: Cyber warfare, cyber defense, cyber terrorism, digital forensics. Meeting of current and retired staff and academics from around the world working in the area of information security. This includes a set of formal panels and discussions of current research findings, case studies and works by doctoral degree candidates.
- Cybersecurity conference 2024 in Asia
Location: Kuala Lumpur, Malaysia
Coverage: Cybersecurity challenges and strategies in the Asia-Pacific Region. Keynote speakers, panel meetings and vendor displays are general items.
Cybersecurity VC ecosystem overview
Cybersecurity VC funding is still slow, despite soaring demand. The market is adjusting to a post-bonanza reality. Valuations for some cybersecurity startups have plummeted, especially those that thrived during the tech boom. Take Noname Security: its worth dropped from $1 billion to about $500 million.
But not all companies are in the same boat. A cyber-AI dark horse Darktrace has seen its valuation stabilize and even rise. Another example is Wiz. It managed to raise cybersecurity venture capital at a record $12 billion valuation. These companies thrive because they have tough brands, reliable tech, and loyal customers. That’s how they stay strong when the cybersecurity market gets rough.
Early-stage investments still go strong with seed rounds made up 42% of total funding. Just look at these examples: HEAL Security, a healthcare cybersecurity startup, raised $4.6 million; Prompt Security secured $5 million; and QNu Labs got $6.5 million for quantum cybersecurity. Investors are clearly eager to support new cybersecurity technologies.
AI changes the game. Companies like Darktrace and LogRhythm-Exabeam use AI to tackle complex cyber attacks. This AI focus is a big draw for cybersecurity investors, helping startups like Wiz raise big money. Just look at its $12 billion valuation before even going public.
M&A is opening up a fresh path to liquidity. With the current economic and geopolitical climate, IPO markets are largely shut, making consolidation the go-to move in the cybersecurity industry. Big mergers, like LogRhythm joining forces with Exabeam and Cisco’s massive $28 billion buyout of Splunk, show that teaming up is the best way to tackle tough cyber threats. Palo Alto Networks snapping up IBM’s QRadar assets and Akamai’s $450 million deal for Noname Security prove that consolidation is a hot ticket, creating stronger, more diverse cybersecurity solutions that attract big bucks.
These deals, moreover, reveal something else, namely that private equity helps to fuel this consolidation trend, since stronger, more competitive firms attract more cybersecurity venture capital, and help to regenerate investor confidence in the field.
Cybersecurity investment begins to turn a corner
While cybersecurity venture capital investment may not reach the highs of 2020-2021 anytime soon due to global drops in VC funding, geopolitical conflicts, and economic headwinds, cybersecurity startups with strong financials and clear growth paths can still attract cash.
Want to nail your spot at the cybersecurity venture capital table? Follow these steps that helped our clients raise over $3 billion:
Prove product-market fit: share real customer feedback, successful pilot programs, or early sales data.
Show your unique value: highlight what sets you apart from the competition.
Validate the market: use traction metrics like user growth or revenue to show demand.
Build a solid business plan: detail clear strategies for growth, revenue, and profitability with thorough market research and realistic financial projections.
Create a killer investor pitch deck: make your presentation irresistible.
If you’re looking for consultancy or hands-on support, contact our Waveup team. We’re here for you!