Cyber venture capital funding on pace to hit four-year low


Crunchbase data released Thursday show that venture capital investments in cybersecurity startups are declining, with less capital raised and fewer agreements than the previous year. Cybersecurity companies raised about $1.9 billion in the third quarter, a 30% decrease from the $2.7 billion raised the previous year. The 153 transactions in the quarter also represented a 17% year-over-year decrease.

A paucity of large, late-stage agreements is largely to blame for the sector’s cumulative squeeze on VC capital. Crunchbase tracked five deals worth at least $75 million in the third quarter, while there were over a dozen rounds of the same magnitude a year ago. The most recent VC activity in cybersecurity indicates a pragmatic phase in an oversaturated business.

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