Cybersecurity Funding Surges to $7.7 Billion in Q1, Marking a Three-Year High

After a two-year slowdown, cybersecurity funding is making a strong comeback. The amount of capital cybersecurity companies and startups raised in Q1 shows renewed investor confidence as cyber threats keep rising.

According to data from Stocklytics.com, venture capital investments in cybersecurity soared to an impressive $7.7 billion in Q1, the highest quarterly figure in three years.

A Record-Breaking Start to the Year

Despite all the efforts companies and organizations worldwide put into preventing cyber attacks, global cybercrime hit a jaw-dropping $9.2 trillion last year. Even more shockingly, this figure is expected to skyrocket by 70% and hit $15.6 trillion by 2030.

The surging number and sophistication of cyberattacks and the snowballing cost of the damage they cause to companies and organizations continue fueling demand for cutting-edge solutions. As a result, cybersecurity remains a critical sector for VC investments, with momentum accelerating in 2025.

According to Crunchbase data, cybersecurity companies raised a whopping $7.7 billion in Q1, the highest quarterly figure in three years. This impressive figure trails Q4 2021, when VC investors poured $7.9 billion into the market. Statistics also show cybersecurity funding skyrocketed by 140% year-over-year, compared to $3.2 billion raised in Q1 2024. Moreover, the $7.7 billion raised in the first three months of the year is the highest Q1 funding the cybersecurity market has ever seen, followed by $7.5 billion raised in Q1 2022 and $6.1 billion in Q1 2018.

The Crunchbase data also revealed one interesting trend- while the amount of money raised in funding rounds remains high, the number of deals has dropped. In Q1 2025, cybersecurity companies closed 49 funding rounds, down from 59 reported in the same quarter a year before. These numbers show that cyber companies are securing bigger investments through fewer rounds. Also, investors are focusing on backing larger, more established projects rather than spreading funds across many smaller ones.

Cumulative Cybersecurity Funding Hits $141 Billion

With an impressive $7.7 billion raised in the first three months of the year, 2025 is shaping up to be one of the strongest years for cybersecurity funding, second only to the record-breaking figures of 2021. Also, due to the strong funding activity in Q1, the cumulative funding amount in the cybersecurity sector climbed to over $141 billion.

More than 70% of that value, or roughly $100 billion, went to companies from the United States, with California as the leading hub. European cybersecurity companies raised only one-quarter of that value, or $22.8 billion, while Asian companies follow with $14.2 billion in funding rounds.