2024 Q1 Cybersecurity Funding Report

Posting date: 22 Apr 2024

Stanton House is the leading talent partner for Cybersecurity startups in North America, specializing in GTM, and Product & Engineering hires. Once again, we are here to provide you with a round-up of noteworthy developments from the first quarter of 2024.

The beginning of the year has been interesting from an M&A perspective, with a few big players in the market consolidating and adding best of breed technology to their offering, in pursuit of providing their customers with more. Notably, Delinea’s two acquisitions of Authomize and Fastpath, Zscaler’s acquisition of Avalor, SentinelOne’s acquisition of PingSafe, CrowdStrikes acquisition of Flow Security, Synk’s acquisition of Helios, and Armis’ acquisition of Silk Security.

The funding landscape has seen a few large rounds, something we got used to seeing in 2021-2022, when it felt like the norm. Notable $100m+ rounds included: Nozomi Networks securing their Series E of $100m, Silverfort announcing their Series D of $116m, Cycode and Claroty both securing $102m in growth funding, as well as Quantinuum raising $300m in additional funding.

After a challenging 2023 for VC-backed startups, the outlook for 2024 was uncertain. While the total funding for Q1 2024 ($2.7 billion) fell slightly below Q1 2023 ($2.9 billion), it marked an improvement from the lows of 2023, notably Q4 at $1.6 billion. Although still far from the extraordinary highs of 2021, when $24 billion flooded into the industry, there are promising signs indicating a potentially more robust market in 2024.