Pinpoint Search Group has released its latest report, “Cyber Security Vendor Funding Report – Q2, 2024.” The document indicates a slight increase in the number of transactions compared to Q2 2023 but a significant increase in the total amount of funding raised. According to Pinpoint, the rise in funding year over year is a positive indicator for an industry that has undergone considerable changes over the past year.
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Key Takeaways
- In Q2 2024, Pinpoint documents 120 transactions in the cybersecurity vendor space, totaling $3.3 billion across 98 funding rounds and 22 M&A events
- Early-stage rounds (Seed and Series A) dominated funding volume in Q2 2024, accounting for 55%
- While later-stage financing (such as Growth Funding, Series C, D, and E) only represented 13% of the total deals in Q2 2024, it accounted for a significant proportion of funding dollars, making up 65% of the total funding during that period
On Record
In a recent quote, Mark Sasson, founder and managing partner at Pinpoint Search Group, said, “The upward trend in funding year over year is not easily explained. Last year was a challenging year economically, likely contributing to the dip in cybersecurity funding we experienced throughout 2023. Additionally, there has been growing evidence of an industry reset, with investors spreading their funding dollars among new technologies designed to address the IT threat landscape of tomorrow, including AI, crypto, and automation.”
