The cybersecurity funding bubble hasn’t burst — but it’s starting to deflate

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Last year was record-breaking for the cybersecurity market. Data from Momentum Cyber, a financial advisory firm for the security industry, showed that cybersecurity startups raised a “record-shattering” $29.5 billion in venture capital in 2021, more than doubling the $12 billion raised in 2020, while a record number — including Dragos and Noname Security — were minted as unicorns.

The past few months have started to paint a different picture for the industry, which has managed to successfully navigate the pandemic, geopolitical conflict, and — so far — the looming economic storm.

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