Cybersecurity Venture Capital Investments Took a Stiff Dip in Q2 22
Q2 VC investment levels across the cybersecurity landscape slipped to $3.4 billion, a quarterly drop of nearly 40%, exceeding the 23% drop in the global venture ecosystem
Metacurity has been tracking venture investments in cybersecurity since January 1, 2018. Given the high publicity surrounding destructive cybersecurity incidents, cybersecurity venture capital funding deals started to ramp up beginning in Q4 2020 quickly. They took on a heated pace in Q4 2021, with a total deal volume reaching $8.3 billion, capping a year that experienced nearly $23 billion of investments in “pure play” cybersecurity companies, namely companies that counted some form of cybersecurity as their primary business.
But investments in the sector started to slip in Q1 22 to around $5.9 billion. According to our latest tally, Q2 22 VC investment levels across the cybersecurity landscape continued to drop to $3.4 billion, a quarterly decline of nearly 40%, exceeding the 23% drop in the global venture ecosystem as reported by CB Insights.
The total number of deals also ticked down. From Q1 22 to Q2 22, the total number of VC deals slipped from 101 to 96. Of those 96 deals, nearly a quarter, or twenty-one, were smaller seed funding rounds.
With fewer and smaller deals, the average cybersecurity deal size dropped 41%, from $59 million to $35 million, harkening back to the days before Q4 2020.
Metacurity is pleased to make available to our paid subscribers via a separate post a link to our exclusive database containing the complete listing of the nearly 1,200 deals we’ve tracked since January 2018. The database includes the date of each deal, company name, company focus, the general category each company falls in, the dollar amount of the round, the level of the round, and each investor.
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