The cybersecurity sector recorded 346 funding rounds and 91 mergers and acquisition (M&A) transactions in 2023, according to cyber recruitment firm Pinpoint Search Group.
This equals 437 cyber deals in total and a 40% increase from 2022, which saw 303 deals signed in the sector.
However, the overall cyber investment raised in 2023 only amounted to $8.7bn, which represents a 40% decrease in fundraising from the previous year's $14.5bn.
Investors Shifted to Early-Stage Funding
According to Pinpoint’s research team, this decline in total funding raised can be attributed to a shift in investor focus in 2023.
“Investors adjusted their approaches, directing a greater portion of their funds into early-stage initiatives within the cybersecurity sector,” reads the report.
This trend is confirmed by the breakdown of rounds per type, with seed funding alone making up 42% of all funding deals.
Series A and series B rounds came second and third, representing 24% and 13% of all deals, respectively.
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