The cybersecurity funding bubble hasn’t burst — but it’s starting to deflate
Despite a slowdown in financing and an apparent over-investment in certain cybersecurity subsectors, investors don’t expect doom and gloom for the cybersecurity market going forward.
Last year was record-breaking for the cybersecurity market. Data from Momentum Cyber, a financial advisory firm for the security industry, showed that cybersecurity startups raised a “record-shattering” $29.5 billion in venture capital in 2021, more than doubling the $12 billion raised in 2020, while a record number — including Dragos and Noname Security — were minted as unicorns.
The past few months have started to paint a different picture for the industry, which has managed to successfully navigate the pandemic, geopolitical conflict, and — so far — the looming economic storm.