Cybersecurity startups drew $10.6 billion in first-half funding, Crunchbase says

Cybersecurity startups are still attracting serious venture money in 2026, even as artificial intelligence companies continue to grab the loudest headlines. For retail investors watching private-market signals, the takeaway is that security spending remains a live growth theme, though the latest quarter showed some cooling.

Startups in security and privacy-related categories raised $10.6 billion globally in the first half of 2026, according to a Crunchbase analysis of venture funding across stages. Crunchbase said that total was broadly in line with recent comparison periods, keeping the sector at historically elevated funding levels.

Venture funding is private capital invested in startups, often before they reach the public market. It matters because these funding rounds can show where investors expect future demand, and they can also shape which companies may later become acquisition targets or public listings.

Second-quarter funding slowed

The first quarter carried more momentum than the second, according to Crunchbase. Security and privacy startups raised $4.4 billion in seed through growth-stage funding in Q2 2026.

That was down about 30% from both the previous quarter and the same period a year earlier, Crunchbase said. The number of funding rounds fell by a similar amount.

Crunchbase framed the decline as moderate rather than alarming, noting that the two prior quarters had been especially strong for cybersecurity fundraising. The second quarter also still produced eight rounds of at least $100 million, the kind of large financing sometimes called a jumbo round.

Large rounds kept coming

Cyera, a New York company building AI-enabled enterprise security tools with a focus on AI agents, was the biggest second-quarter fundraiser cited by Crunchbase. The company raised $600 million in June in a round led by Evolution Equity Partners, valuing Cyera at $12 billion.

NinjaOne, based in Austin, also landed a large round. The endpoint management platform provider raised more than $400 million in Series C extension funding, according to Crunchbase, at a valuation of $12.3 billion. Endpoint management refers to software used to monitor and manage devices such as laptops, servers and other connected systems.

Dream, an Israeli startup founded three years ago, raised $260 million at a $3 billion valuation, Crunchbase said. The company describes itself as an AI and cyber defense business serving governments and critical infrastructure.

Those rounds show that investors are still willing to put large checks into companies they see as positioned for rising security needs, particularly as AI tools become more common inside businesses and public-sector systems.

Acquisitions offered another signal

Cybersecurity startups also saw exit activity in the second quarter, according to Crunchbase. An exit is a transaction, such as a sale or initial public offering, that gives investors a path to cash out of a private company stake.

The IPO market was quiet for the sector in Q2, Crunchbase said, but mergers and acquisitions were more active. The largest disclosed deal cited by Crunchbase was Motorola Solutions’ planned $1.5 billion purchase of D-Fend Solutions, an Israeli counter-drone technology company. The deal sits at the overlap of security and defense technology.

Crunchbase also reported multiple startup acquisitions in the quarter valued in the hundreds of millions of dollars, though it highlighted the D-Fend transaction as the largest.

A solid market, without the AI frenzy

The cybersecurity funding picture in early 2026 looks healthy, based on Crunchbase’s data, but it does not match the valuation surge around foundational AI companies. Foundational AI refers to companies building core models and infrastructure that power broad artificial intelligence applications.

For investors tracking the sector, the split is useful. Cybersecurity is not receiving the same level of market attention as the biggest AI names, but Crunchbase’s figures show that capital is still flowing, major private valuations are still being set, and acquisition activity has not disappeared.

This story draws on original reporting from Crunchbase News.