Cybersecurity startups attracted a surge in funding during 2025, reaching the highest level in three years. Investment topped $18 billion, marking a 26% increase over 2024, driven largely by large funding rounds for AI-centered security firms. Despite a slight drop in the number of deals, the amount raised grew significantly, especially at the early stages where $7.5 billion was invested—a 63% increase fueled by AI-security innovations. U.S.-based companies dominated the market, securing 74% of total deals and sizable exits. Highlight deals included Cyera’s near-billion-dollar funding rounds and Google’s planned $32 billion acquisition of cloud security firm Wiz. The year also featured major IPOs and acquisitions, signaling strong confidence in cybersecurity’s growth and resilience.
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