Cybersecurity Venture Spending in Q1 23 Dipped to Lowest Level Since Q3 20
The sharp drop followed two banner years of VC investments. One VC says despite fluctuations, the long term trend for VC cybersecurity spending is bullish.
According to the cybersecurity venture investing data that Metacurity has been tracking since Q1 2018, the total amount of venture investments in the pure cybersecurity sector1 dipped to $2.471 billion during the first quarter of 2023, the lowest level we’ve tracked since Q3 2020, when total venture spending in the cybersecurity sector reached $1.6 billion.
Moreover, the roughly $2.5 billion in VC deals reported during Q1 2023 was less than half the $5,115 invested during Q4 2022 and only 40% of the $5.93 billion in VC deals compared to Q1 2022. This dip in spending followed two banner years of investments in cybersecurity startups, during which total VC spending in the sector reached almost $23 billion in 2021, dipping down to $17.7 billion in 2022.
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