Cybersecurity startups pulled in $10.6 billion in the first half of 2026. That’s historically high funding, even if momentum slowed in Q2.
The second quarter saw $4.4 billion raised across seed to growth stages. This marks a 30% drop from Q1 and last year’s Q2. Eight rounds topped $100 million, showing investors still back big bets despite the pullback.
Leading the pack was Cyera, an AI-driven enterprise security startup. It raised $600 million in June alone at a $12 billion valuation. Cyera’s raise dwarfs most but isn’t the only headline. NinjaOne, an endpoint management platform, secured over $400 million in a Series C extension. Dream, an Israeli AI and cyber defense firm, closed $260 million at a $3 billion valuation.
Meanwhile, the biggest M&A deal was Motorola Solutions planning to buy D-Fend Solutions for $1.5 billion. That signals strategic interest in bolstering cybersecurity portfolios amid a competitive market.
Venture capital overall hit a record $412.7 billion in the U.S. during the first half of 2026. That’s 29% more than all of 2025 and 15% above levels from 2021. More than 81% of these funds poured into $100 million-plus deals. Q2 alone saw seven rounds exceed $1 billion, underscoring investors’ appetite for megadeals.
Digital health funding also skewed towards large transactions, with 45% of its H1 2026 venture capital going to megadeals over $100 million. But private equity exits tell a different story. In Q2 2026, U.S. exits dropped 14% by deal count and 46.3% by value from the previous quarter. There were 353 exits worth $102.6 billion, down from 411 exits valued at $191.1 billion in Q1.
Joanna Glasner summed it up: “Cybersecurity isn’t winning the war for attention in a startup investment landscape still dominated by megarounds for AI pioneers.” The sector holds steady but must share the spotlight with AI’s relentless surge.
Based on
- So Far, 2026 Is A Solid Year For Cybersecurity Startup Funding — news.crunchbase.com
- Legal tech startups found it harder to raise cash in 2026 — axios.com
- Venture capital is already having a record year — axios.com
- Large rounds continue to pace digital health funding — axios.com
- U.S. private equity exits are stalling again — axios.com
