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Cybersecurity holds at $3.3 billion in Q1 as platform consolidation accelerates
Cybersecurity startups raised $3.3 billion across 182 deals in the first quarter of 2025, flat in value from the prior quarter despite a drop in deal count. Consolidation emerged as a defining theme, with larger firms acquiring specialized capabilities to strengthen platform breadth and close product gaps. CyberArk’s $165 million acquisition of identity governance startup Zilla Security and NVIDIA’s $320 million purchase of synthetic data firm Gretel highlight this shift toward integrated, AI-aligned platforms.
Segment activity remained concentrated in security operations, identity and access management, and application security. Application security in particular was supported by continued demand for tools that protect expanding cloud-based attack surfaces. Network security lagged as core functions are increasingly embedded within hyperscaler ecosystems. With US federal cybersecurity funding at record levels and late-stage valuations recovering, the sector remains shaped by structural drivers favoring platform-oriented scale.
Table of contents
| Cybersecurity landscape | 3 |
| Cybersecurity VC ecosystem market map | 4 |
| VC activity | 5 |
| Cybersecurity VC deal summary | 23 |
