Cybersecurity funding dropped 58% YoY

 

Venture funding for cybersecurity startups dropped 58% YoY to $2.7B in Q1 2023. Despite the drop compared to $6.5B from Q1 2022, funding was slightly higher than Q4 2022's total of $2.4B.  In Q1 2023, 149 cybersecurity funding deals were announced, representing a 45% YoY drop.  Notable funding rounds that closed in the quarter included quantum computing startup SandboxAQ's $500M fundraiser, Netskope's $401M round, and Wiz's $300M Series D round.  The annual funding total is anticipated to surpass 2020's amount of $10B by the end of this year if financing continues at the current rate. Despite the sector's resilience to the venture funding pullback, geopolitical headwinds could reduce investments in the sector.