In 2023, the cybersecurity sector saw a total of 437 deals, including 346 funding rounds and 91 mergers and acquisition transactions, as reported by Pinpoint Search Group. This represents a 40% increase from 2022. However, despite the higher number of deals, the total investment only amounted to $8.7bn, a 40% decrease from the previous year’s $14.5bn.

The decrease in total funding raised is attributed to a shift in investor focus, with more funds being directed into early-stage initiatives within the cybersecurity sector. Seed funding made up 42% of all funding deals, with series A and series B rounds following behind.

The number of M&A deals also decreased by 20% from 2022, with the top funded subdomains in 2023 being identity, detection & response, and governance, risk, and compliance (GRC), although they received less funding than in previous years.

Notable funding rounds in early 2023 included Netskope raising $401m, Sandbox AQ securing a $500m growth round, and Wiz achieving a $300m series B round in January and February.

It’s important to note that funding deals under $1m, grants, and debt funding were not included in Pinpoint Search Group’s report, and undisclosed funding rounds were omitted starting from the third quarter of 2023.


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