Cybersecurity not the sweet spot it once was
The sector showed a slight uptick in dollars invested in Q3, according to Crunchbase data, but deak flow was down by 17 percent.
Chris Metinko writes in Crunchbase News that venture funding to cybersecurity start-ups in the third quarter of 2023 saw a slight uptick from Q2, but was still down 30 percent year to year.
“According to Crunchbase data, cybersecurity start-ups raised nearly $1.9 billion through 153 deals announced in Q3, a 12 percent increase from the $1.7 billion raised in 181 deals the previous quarter. The number of deals represents a 15 percent dropoff,” he wrote. “However, when compared to the same quarter last year, the numbers point to a significant decline. The past quarter represents a 30 percent decline from the $2.7 billion raised in Q3 2022 and a 17 percent drop in deal flow.”
Metinko noted that the decline in deals is alarming even as the dollars invested showed a slight bounce back. “The total number of deals is the lowest amount in years and shows the difficulty some are seeing in getting funded,” he observed.
The column can be found here.