Cybersecurity startups raised $10.6 billion in first half of 2026

Cybersecurity and privacy startups raised $10.6 billion globally in the first half of 2026, according to a Crunchbase analysis of companies in its security and privacy categories. The total keeps the category at historically high funding levels even as the broader startup market remains led by large artificial intelligence financings.

The first half was uneven. Crunchbase said seed through growth-stage funding for security and privacy companies reached $4.4 billion in the second quarter, down about 30% from both the prior quarter and the same period a year earlier. Deal counts fell by a similar amount, according to the analysis.

That slowdown followed two strong quarters for the sector, which makes the Q2 pullback less useful as a standalone warning signal. The quarter still produced eight rounds of at least $100 million, showing that later-stage investors remain willing to underwrite large cybersecurity bets where valuations and growth expectations can support them.

Large rounds kept the category visible

The largest disclosed Q2 round went to Cyera, a New York company that develops enterprise security tools and has positioned its product around AI agents. Cyera raised $600 million in June at a $12 billion valuation in a round led by Evolution Equity Partners, according to Crunchbase.

NinjaOne, based in Austin, raised more than $400 million through a Series C extension. The endpoint management company was valued at $12.3 billion in that financing, Crunchbase reported.

Another large round came from Dream, a three-year-old Israeli company that describes itself as an AI and cyber defense provider for governments and critical infrastructure. Dream raised $260 million at a $3 billion valuation.

The disclosed valuations show investors are still assigning premium prices to companies tied to enterprise security, endpoint management and cyber defense. Revenue, profitability, burn rate and detailed financing terms were not disclosed in the Crunchbase analysis, limiting what can be inferred from the headline valuations alone.

Exits leaned toward acquisitions

Security startups also produced exits during the quarter, though Crunchbase described the IPO market as quiet. M&A accounted for the larger disclosed transactions.

The biggest announced deal cited by Crunchbase was Motorola Solutions’ planned acquisition of D-Fend Solutions, an Israeli counter-drone technology company, for $1.5 billion. The deal sits at the intersection of security and defense technology, two areas that have drawn more investor attention as governments and critical infrastructure operators reassess risk.

Crunchbase also said Q2 included multiple startup acquisitions valued in the hundreds of millions of dollars, though the disclosed examples in the written analysis centered on the Motorola Solutions and D-Fend transaction.

AI attention has not displaced security funding

The funding data does not put cybersecurity in the same market cycle as foundational AI, where the largest rounds and valuation jumps have dominated venture activity. It does show that security remains a durable category for venture investors, helped by large enterprise budgets and the growth of new attack surfaces tied to AI systems and autonomous software agents.

For founders and investors, the signal from the first half is mixed but constructive: capital is still available for companies with enough scale or strategic relevance, while Q2 data shows the pace can cool quickly. The sector is not leading the venture market, but it is still drawing enough large checks and acquisition interest to remain one of the stronger enterprise technology categories in 2026.

This story draws on original reporting from Crunchbase News.