SiliconAngle reports that cybersecurity funding rounds and mergers and acquisitions totaled 437 in 2023, representing a 14% increase from 2022, but investments dropped by 40% to $8.7 billion.
Such a decline in cybersecurity funding was evident during the last quarter of last year, which saw $1.6 billion in raised investment, compared with $2.9 billion during the same period in 2022, even as 21% more companies secured venture capital in the quarter relative to the same period in 2022, according to a Pinpoint Search Group.
Reductions in overall funding have been attributed by researchers to growing interest rates and inflation, as well as market adjustments magnified valuations during the past few years.
"Overall, professionals in the cybersecurity sector have reason to be optimistic. While the industry experienced real pain in 2023, the demand for security solutions continues to grow. The impact on the professionals in the space will depend on how quickly investors and founders can transition from early-stage innovation to growth," said Pinpoint Search Group founder and Managing Partner Mark Sasson.