Cybersecurity Startup Funding Statistics 2026: Rounds, Stages, and Deals
CyberReviewed Research Desk ·
Our analysts studied 4,626 cybersecurity venture funding rounds that Crunchbase recorded from the first quarter of 2023 to the third quarter of 2026, with Crunchbase's annual totals back to 2016 and a second annual series from Return on Security. The data shows how much money cybersecurity startups are raising as of Q4 2026, at which stages, and in rounds of what size.12
Key Findings
- Cybersecurity startups raised $18.1 billion in the first three quarters of 2026, up 19.1% from $15.2 billion in the same period of 2025.
- The number of rounds fell 6.5%, from 933 to 872, over the same period.
- Late-stage rounds brought in $8.3 billion in the first three quarters of 2026, 45.9% of the total.
- The average round in the third quarter of 2026 was about $28.7 million, the highest of any quarter since 2023.
- The 10 largest rounds of the third quarter of 2026 totaled $3.4 billion, about half of the quarter's $6.8 billion.
Venture investors put money into cybersecurity startups in rounds that run from a first seed check to late-stage rounds of hundreds of millions of dollars. After a peak in 2021, funding fell by about two-thirds by 2023, and since then it has climbed back while the number of deals has kept falling.2 The money is going to fewer, larger companies, many of them building security for AI.3 But the trackers that measure this market do not agree on its size.
Our analysts used Crunchbase's quarterly cybersecurity funding data by stage, published with its third-quarter 2026 report, and its annual totals from its 2025 year-end report.23 We added Return on Security's 2025 market report as a second annual series, and funding announcements from companies we review.4 Figures are in US dollars.
In the following sections, we compare funding by quarter, by stage, by deal count and average round size, by the largest rounds of 2026, and across trackers.
How Much Cybersecurity Startups Raised Each Quarter
We start with total funding by quarter, which shows how the market recovered from its 2023 low.
| Quarter | Funding | Rounds |
|---|---|---|
| Q1 2023 | $3.2B | 404 |
| Q2 2023 | $2.7B | 310 |
| Q3 2023 | $2.8B | 301 |
| Q4 2023 | $2.4B | 291 |
| Q1 2024 | $4.3B | 360 |
| Q2 2024 | $6.1B | 304 |
| Q3 2024 | $3.5B | 263 |
| Q4 2024 | $3.1B | 269 |
| Q1 2025 | $4.2B | 333 |
| Q2 2025 | $6.4B | 313 |
| Q3 2025 | $4.6B | 287 |
| Q4 2025 | $6.1B | 319 |
| Q1 2026 | $6.7B | 365 |
| Q2 2026 | $4.6B | 270 |
| Q3 2026 | $6.8B | 237 |
| All quarters | $67.5B | 4,626 |
Source: CyberReviewed analysis of Crunchbase quarterly cybersecurity funding data.13
Source: Crunchbase.3 Chart: CyberReviewed.
Key Findings
- Third-quarter 2026 funding of $6.8 billion was the highest quarter in the series, about 50% above the second quarter, which Crunchbase attributes to large rounds for AI security companies.3
- Quarterly funding was below $3.3 billion in every quarter of 2023 and has not fallen below $4.2 billion since the first quarter of 2025.
- Crunchbase counted at least 18 rounds of $100 million or more for AI security companies in the third quarter of 2026.3 With that many rounds of $100 million or more in one quarter, a few large deals now account for much of each quarter's total.
Which Funding Stages Gained Money in 2026
Startups raise at different stages as they grow, so we split the first three quarters of 2025 and 2026 by stage to see where the increase came from.
| Stage | Q1 to Q3 2025 funding | Q1 to Q3 2025 rounds | Q1 to Q3 2026 funding | Q1 to Q3 2026 rounds |
|---|---|---|---|---|
| Seed and angel | $1.8B | 603 | $1.7B | 583 |
| Early stage | $5.7B | 252 | $7.0B | 216 |
| Late stage | $7.4B | 62 | $8.3B | 61 |
| Technology growth | $0.3B | 16 | $1.1B | 12 |
| All stages | $15.2B | 933 | $18.1B | 872 |
Source: CyberReviewed analysis of Crunchbase quarterly cybersecurity funding data by stage.13
Source: Crunchbase.3 Chart: CyberReviewed.
Key Findings
- Early-stage funding rose 22.8% while early-stage rounds fell from 252 to 216, so the average early-stage round grew from about $22.6 million to about $32.4 million.
- Seed and angel rounds made up 583 of the 872 rounds in 2026, 66.9%, but only $1.7 billion of the money.
- Technology growth funding rose from $0.3 billion to $1.1 billion on just 12 rounds, most of it from the third quarter.
How Deal Counts and Average Round Size Have Moved
Total funding can rise while fewer companies get funded, so we tracked the number of rounds and the average round alongside the dollars.
| Year | Funding | Rounds |
|---|---|---|
| 2016 | $5.8B | 1,097 |
| 2017 | $7.4B | 1,209 |
| 2018 | $9.9B | 1,368 |
| 2019 | $13.2B | 1,291 |
| 2020 | $13.1B | 1,350 |
| 2021 | $30.9B | 1,536 |
| 2022 | $21.1B | 1,499 |
| 2023 | $10.5B | 1,218 |
| 2024 | $14.2B | 1,043 |
| 2025 | $18.1B | 992 |
Source: Crunchbase, cybersecurity funding 2025 year-end report, data as of January 4, 2026.2
Source: CyberReviewed analysis of Crunchbase data.13 Chart: CyberReviewed.
Key Findings
- Crunchbase counted 992 rounds in 2025, the fewest in the 10 years shown, even as funding reached $18.1 billion, the most since 2022.2
- The average round rose from about $7.9 million in the first quarter of 2023 to about $28.7 million in the third quarter of 2026, more than three and a half times as large.
- Crunchbase reported that round counts fell at every stage in the third quarter of 2026.3 Fewer, larger rounds mean a startup without an AI security story may find it harder to raise.
The Largest Cybersecurity Rounds of 2026
A handful of large rounds now drive the totals, so we listed the 10 biggest of the third quarter and the 2026 rounds raised by companies we review.
| Company | Round size (USD millions) |
|---|---|
| Keyfactor | 1,000 |
| Island | 400 |
| Cyera | 400 |
| Upwind Security | 300 |
| Exein | 270 |
| Horizon3.ai | 250 |
| Cylake | 245 |
| ThreatLocker | 190 |
| Cathedral | 160 |
| Socure | 156 |
Source: Crunchbase, third-quarter 2026 cybersecurity funding report, October 15, 2026.3
Source: Crunchbase.3 Chart: CyberReviewed.
Key Findings
- The 10 largest third-quarter rounds totaled $3.37 billion, and Keyfactor's $1 billion alone was about 14.7% of the quarter. Upwind and Horizon3.ai, which we review, were among them.
- Among companies we review, Socket raised a $60 million Series C at a $1 billion valuation in May 2026, Oligo Security raised $60 million in August, and Hadrian raised a $40 million Series B in October.567
- Big checks are also going to acquisitions. Crunchbase reported that Visa agreed to buy BioCatch for $2.4 billion and that Cyera agreed to buy Oasis for about $1 billion during the quarter.3
How the Funding Trackers Differ
Different trackers count different deals, so we compared Crunchbase's annual totals with Return on Security's.
| Year | Crunchbase funding | Crunchbase rounds | Return on Security funding | Return on Security rounds |
|---|---|---|---|---|
| 2022 | $21.1B | 1,499 | $22.6B | 858 |
| 2023 | $10.5B | 1,218 | $13.2B | 758 |
| 2024 | $14.2B | 1,043 | $15.8B | 676 |
| 2025 | $18.1B | 992 | $25.1B | 743 |
Source: Crunchbase, 2025 year-end report;2 Return on Security, 2025 State of the Cybersecurity Market.4
Sources: Crunchbase2 and Return on Security.4 Chart: CyberReviewed.
Key Findings
- Return on Security put 2025 funding at $25.1 billion, up 59%, while Crunchbase put it at $18.1 billion, up about 26%. Both show 2025 funding above 2023 and 2024.24
- Return on Security found that 48 mega-rounds made up 65% of 2025 funding, and that US and Israeli companies took 91%.4
- Crunchbase's own figures move as late rounds are added: its October 2026 quarterly data sums to $21.3 billion and 1,252 rounds for 2025, above the $18.1 billion and 992 rounds in its January report.23 A reader comparing years should use one tracker and one data vintage.
What the 2026 Funding Figures Mean
More money is reaching cybersecurity startups in 2026 than in any year since 2022, but it is reaching fewer of them. For founders, that means larger rounds are available to companies with a clear AI security product, while seed and early-stage rounds are harder to win.3
Investors are also buying. Return on Security counted $76.4 billion in cybersecurity acquisitions across 320 deals in 2025, up from $46.1 billion in 2024, and large acquisitions continued into the third quarter of 2026.43
So if you are raising for a cybersecurity startup or choosing a young vendor, expect fewer, larger rounds and check how recently the company raised and from whom.
Sources
- CyberReviewed analysis of Crunchbase quarterly cybersecurity funding and deal counts by stage, Q1 2023 to Q3 2026, and funding announcements from companies we review, conducted October 2026
- Crunchbase News, cybersecurity startup investment 2025 year-end report, data as of January 4, 2026
- Crunchbase News, Joanna Glasner, third-quarter 2026 cybersecurity funding report, October 15, 2026
- Return on Security, 2025 State of the Cybersecurity Market
- Socket, Socket Raises $60M Series C at a $1B Valuation, May 20, 2026
- SiliconANGLE, Oligo Security raises $60M as AI speeds exploit development, August 4, 2026
- Hadrian, Hadrian raises $40M, October 6, 2026
Methodology
Quarterly funding and round counts by stage come from the Crunchbase data published with its third-quarter 2026 cybersecurity report. Crunchbase rounds stage values to $0.1 billion, so quarterly totals are the sum of the rounded stage values and may differ slightly from totals Crunchbase states elsewhere. Average round size is total funding divided by the number of rounds and is approximate. Annual figures for 2016 to 2025 come from Crunchbase's 2025 year-end report, with data as of January 4, 2026. Crunchbase adds rounds after they close, so its later quarterly data shows higher 2025 totals ($21.3 billion and 1,252 rounds) than the year-end report; we use the year-end figures for the annual table and the October 2026 quarterly data for the quarterly and stage tables. Return on Security uses its own definitions of cybersecurity companies and rounds. We calculated products, differences, and ratios from the published values. All figures are in US dollars as published, so no currency conversion was needed.
