Infographic – Cybersecurity Venture Funds Zoom in 2021

Click on image for full-size view (Crunchbase)

8 Jan. 2022. Venture funding for cybersecurity companies jumped sharply in 2021 to a record $21.8 billion raised for the year, nearly 2.5 times the amount raised in 2020. At the same time, data reported this week in Crunchbase News also show the number of cybersecurity venture deals transacted worldwide in 2021 dropped to 686, the lowest number of annual transactions for this industry sector in the past five years.

According to Crunchbase, annual venture dollar volumes in cybersecurity rose steadily from $5.1 billion in 2017 to $8.9 billion in 2020, but exploded in 2021 to $21.8 billion. For the first three quarters of the year, cybersecurity start-ups raised from about $4 to $5 billion each quarter. In the fourth quarter, however, investment dollars rose markedly to $7.8 billion, a single-quarter record amount for this sector.

Yet the number of venture deals declined somewhat in 2021 to 686 for the year, after hovering at roughly 750 per year since 2017. This indicates more dollars invested per deal than before, including three deals of $500 million or more cited by Crunchbase. In the fourth quarter of 2021, Crunchbase recorded 201 cybersecurity venture deals, the highest quarterly number for the year.

The cybersecurity sector includes network and cloud security companies, as well as developers of systems for securing individual installations and work sites. Crunchbase computes the data from its database of venture deals compiled during the year. Transactions cover funds invested in pre-seed to growth-stage companies.

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