Cybersecurity startup funding plummets

Investments and merger and acquisition transactions involving cybersecurity startups reached $1.9 billion during the second quarter of 2023, which was a 55% decline from the same period last year, according to SiliconAngle. However, the cybersecurity industry continues to be vibrant, with 97 venture capital rounds tracked during the second quarter of this year, compared with 92 last year, as well as 18 M&A deals, a report from the Pinpoint Search Group revealed. Most of the funding in the second quarter has been attributed to seed investments, which have averaged nearly $5 million. The findings also showed that cybersecurity market growth in the first quarter exceeded those of the general tech sector despite reduced funding terms, with Pinpoint Search Group founder and Managing Partner Mark Sasson noting a "strategic recalibration" in the industry. "The industry seems to be shifting its attention to cutting-edge cybersecurity technologies that are poised to fuel both innovation and mergers and acquisitions," Sasson added.