The cybersecurity sector is a rapidly growing area, with venture capital (VC) funding totaling $18.5 billion in 2022. According to a new report from financial advisory firm Momentum Cyber, this represents a 39% decrease compared to the record-breaking $30.4 billion raised in 2021, but an increase of nearly 50% compared to 2020.
Security startups have raised roughly $79 billion across more than 4,200 deals since 2018, with 95 companies raising over $50 million in 2022 and 15 new unicorns announced. The top sectors in terms of financing volume were identity and access management (IAM), risk and compliance, incident response and threat intelligence, application security, data security, blockchain, and network and infrastructure security.
Momentum Cyber has cataloged 263 cybersecurity-related mergers and acquisitions (M&A). The most active area in terms of M&As was managed security service providers (MSSP), with 46 deals, followed by risk and compliance, IAM, and consulting. SecurityWeek also found that MSSPs were involved in most of the cybersecurity deals in 2022, tracking more than 450 transactions.
The report lists several IPO candidates, with a median funding of nearly $1 billion. Momentum Cyber’s 2023 Cybersecurity Almanac is available in PDF format.
The global cybersecurity sector has seen significant growth in recent years, and the 2022 figures are a testament to its continued development. VC investments totaled $18.5 billion in 2022, representing a decrease compared to the record-breaking $30.4 billion raised in 2021, but an increase of nearly 50% compared to 2020. Moreover, 95 companies raised over $50 million and 15 new unicorns were announced, while 263 M&A deals were tracked. With more than 450 transactions tracked by SecurityWeek and several IPO candidates, the cybersecurity sector is sure to remain strong in the years to come.
Key Points:
• Venture capital (VC) investments in the cybersecurity sector totaled $18.5 billion in 2022, a 39% decrease compared to 2021.
• 95 companies raised over $50 million and 15 new unicorns were announced.
• The top sectors in terms of financing volume were identity and access management (IAM), risk and compliance, incident response and threat intelligence, application security, data security, blockchain, and network and infrastructure security.
• 263 M&A deals were tracked, with MSSPs being the most active area.
• SecurityWeek tracked more than 450 transactions, and several IPO candidates have been identified.
• The cybersecurity sector is sure to remain strong in the years to come.