What the numbers say: In Q1 2023, cybersecurity startups secured $3.1B in VC funding, a more than 50% drop from the $6.4B recorded a year earlier. The number of deals went from 326 to 170 in the same period.
Relevance: Within the cybersecurity sector, risk and compliance, data security, threat intelligence and security operations, and identity and access management domains saw significant investor interest, raking in 85 of the 170 deals. Investors are also eyeing cloud-related security startups, which are expected to be the strongest category for growth in 2023. Where to see the impact: International Data Corporation forecasts a 12% increase in global spending on security products and services this year. Global companies are poised to spend $219B by the end of 2023 due to the increased need for container deployments, remote access, and data protection compliance requirements. |
