Cybersecurity startup funding falls 30% in Q2 2026

Cybersecurity and privacy startups raised $4.4 billion in seed through growth-stage funding in the second quarter of 2026, a decline of roughly 30% from both the previous quarter and the same period a year earlier, according to Crunchbase data. The first quarter of the year was a stronger period for funding than the second.

Despite the dip, the quarter produced eight rounds of $100 million or more. The largest was Cyera, a New York-based developer of AI-enabled enterprise security tools, which raised $600 million at a $12 billion valuation in a June round led by Evolution Equity Partners. NinjaOne, an endpoint management platform provider, raised over $400 million in Series C extension financing at a $12.3 billion valuation. Dream, a three-year-old Israeli AI and cyber defence company for governments and critical infrastructure, closed on $260 million at a $3 billion valuation.

Security startups also saw exits in Q2. The largest was Motorola Solutions’ planned acquisition of D-Fend Solutions, an Israeli counter-drone technology company, for $1.5 billion. Several other acquisitions were valued in the hundreds of millions.