Q2 2023 Sees Surge in Cybersecurity Deal Volume as Total Venture Spending Declines
The total amount of cybersecurity venture investments in Q2 2023 dropped by 21% compared to Q1 but the number of deals spiked to 115, up 31% over Q1 2023 levels
Venture investments in cybersecurity dropped again during Q2 2023, even as the number of deals soared to a near-all-time high. Total venture spending during the quarter fell just short of $2 billion, at $1.976 billion, down 22% from Q1 2023 total venture investments and down 47% compared to Q2 2022.
But the total number of deals spiked to 115, up 31% over Q1 2023 levels and 15% higher than the number of deals in Q2 2022, reflecting a surge of smaller pre-seed and seed rounds in the mix. The number of deals during the quarter was just short of the 118 deals announced in Q4 2021, the high-water mark for cybersecurity venture investing.
Of the total 115 deals during the quarter, almost half, or 46%, were for pre-seed (13) or seed rounds (40).
But, due to the lower dollar amount of investments and the higher number of deals, the average deal size dropped significantly to $17 million, 41% lower than Q1 2023 levels and 56% lower than Q1 2022 levels. The average deal size in Q2 2023 barely topped the average $15 million in Q1 2018, the lowest average since Metacurity has been tracking cybersecurity venture investing.
Paid subscribers to Metacurity can download a safe and protected spreadsheet of each venture deal we’ve tracked since January 1, 2018, through June 30, 2023, by clicking the download button below.
The spreadsheet contains data on nearly 1,500 venture deals that include:
Date of the announced deal
Company name
Summary of the company’s focus
The cybersecurity category the company falls in
Deal amount
Type of round (if known)
Each investor in the round
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