Dive Brief:

• Venture capitalists funneled $4.4 billion into cybersecurity startups during the second quarter of 2024, marking the strongest funding quarter for the sector since 2022, according to Crunchbase data released Wednesday.
• Funding in the second quarter jumped 144% year over year and 63% from the first quarter of 2024. Cyber startups raised $1.8 billion in the second quarter of 2023 and $2.7 billion in Q1 of this year.
• Dealmaking activity in the first half of 2024, totaling $7.1 billion, marked a sustained multiple-quarter period of funding growth for the sector. In the first half of last year, startups raised $4.7 billion in funding, according to Crunchbase.

Dive Insight:

While the collective investments cybersecurity startups raised was up across two consecutive quarters, the number of deals closed during the period declined. Venture dollars flowed to more mature companies raising big rounds.

Crunchbase tracked 153 funding rounds in the cybersecurity sector in Q2, a nearly 20% dip from the 193 deals closed in Q2 2023. Venture capitalists invested in 173 deals in the first quarter of 2024.

Nine-figure deals fueled a surge of investment in Q2, when more than 10 rounds closed at $100 million or more during the quarter. In the first half of this year, there were 19 rounds of $100 million or more, compared to all of 2023, which saw just 20 rounds of at least $100 million, according to Crunchbase.

Wiz closed the largest funding round to date this year, raising $1 billion at a $12 billion valuation in May. Cyera raised $300 million and Island closed a $175 funding round in April.

Crunchbase’s data includes funding rounds announced by startups in network security, cloud security and cybersecurity.