In 2025, investment in cybersecurity startups reached a remarkable $18 billion, reflecting a 26% rise compared to 2024, according to Crunchbase data. This surge marks the third highest annual total for the sector in the last ten years, driven largely by significant funding for artificial intelligence-focused companies.
Notably, large funding rounds contributed to this increase, with at least seven companies securing investments of $400 million or more. The AI-driven data security platform Cyera led the way, raising a total of $940 million through two funding events. Other substantial players included Saviynt, which raised $700 million, and NinjaOne, which completed a $500 million Series C round early in the year.
Despite the total investment increase, the number of deals declined, with nearly 1,000 reported transactions marking the lowest count in a decade. However, early-stage investments saw growth, totaling $7.5 billion—a 63% increase from the previous year. The United States dominated this funding landscape, attracting 74% of investments and witnessing significant mergers, including Google’s planned $32 billion acquisition of Wiz and ServiceNow’s $7.75 billion deal for Armis.