GRAND JUNCTION, Colo.,
July 8,
2024 /PRNewswire/ -- Pinpoint Search
Group, a leading cybersecurity recruitment firm in the
U.S., has released the findings of its Q2 2024 cybersecurity
funding report. The report reveals a slight increase in the
number of transactions compared to Q2 2023 but a significant
increase in the total amount of funding raised. The rise in funding
year over year is a positive indicator for an industry that has
undergone considerable changes over the past year.
In Q2 2024, Pinpoint Search Group's research team recorded
120 transactions in the cybersecurity vendor space, totaling
$3.3 billion across 98 funding rounds
and 22 M&A events. This
represents approximately a one percent increase in transaction
volume from 97 in Q2 2023 and a 71 percent increase in fundraising
from the previous year's $1.9
billion. (Note: The 71 percent year-over-year increase over
Q2 2023 is skewed due to the $1
billion raised by Wiz in May
2024; however, even excluding that round, Q2 2024 still saw
a 21 percent increase over the previous year.)
"The upward trend in funding year over year is not easily
explained," said Mark Sasson,
founder and managing partner at Pinpoint Search Group. "Last
year was a challenging year economically, likely contributing to
the dip in cybersecurity funding we experienced throughout 2023.
Additionally, there has been growing evidence of an industry reset,
with investors spreading their funding dollars among new
technologies designed to address the IT threat landscape of
tomorrow, including AI, crypto, and automation."
Just like in Q1 2024, early-stage rounds (Seed and Series
A) dominated funding volume in Q2 2024, accounting for 55
percent. The growing investor interest in budding companies
indicates continued confidence in a new generation of vendors
addressing not only current but also future business challenges.
For instance, 89 percent of enterprises believe AI-powered threats
are just beginning. Foreseeing this trend, investors began
spreading their investments among emerging technologies last year.
In 2023, Seed-stage rounds accounted for 42 percent of the tracked
funding rounds.
While later-stage financing (such as Growth Funding, Series
C, D, and E) only represented 13 percent of the total deals in
Q2 2024, it accounted for a significant proportion of funding
dollars, making up 65 percent of the total funding during that
period. The interest from investors in later-stage rounds can be
attributed to their ongoing investments in established security
vendors. These vendors have adapted to market changes driven by
increased demand, with cybersecurity budgets rising 59 percent year
over year due to the growing number of breaches and cyber incidents
affecting more organizations. Since these later-stage rounds
usually indicate companies aiming to expand their product lines and
enter new markets, vendors and investors can anticipate a rise in
hiring cybersecurity professionals.
A full copy of Pinpoint Search Group's Q2 2024 report on
cybersecurity funding can be found here.
About Pinpoint Search Group
Pinpoint Search Group is a
leading cybersecurity recruitment firm and specializes in filling
vice president, director, and senior individual talent. Pinpoint's
collective experience recruiting hundreds of candidates in all
segments of cybersecurity provides the company with the credibility
to communicate with, qualify, and place professionals in today's
most competitive area of technology. Pinpoint also produces
Cybersecurity M&A and Vendor Funding Reports
highlighting M&As and funding in the cybersecurity space
monthly, quarterly, and annually.
Media Contact:
Christopher
Joseph (CJ) Arlotta
CJ Media Solutions, LLC for Pinpoint Search Group
C: 631-572-3019
380083@email4pr.com
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SOURCE Pinpoint Search Group