According to Crunchbase data, global cybersecurity- and privacy-focused startups raised $6.8 billion in Q3 2026, about 50% more than the previous quarter and matching the highest quarterly total in years. The increase came from larger rounds rather than more deals; round counts declined sequentially across all stages.
AI startups accounted for the overwhelming majority of funding, especially in identity security. At least 18 companies at the intersection of AI and cybersecurity closed rounds of $100 million or more. The largest was Keyfactor, an enterprise identity security provider, which raised $1 billion in a July growth round led by Summit Partners. Island and Cyera each raised $400 million in September, with Cyera's round valuing it at $12 billion.
M&A also picked up. Visa agreed to buy anti-fraud technology provider BioCatch for $2.4 billion in August, and Cyera acquired Oasis Security in a deal reportedly worth around $1 billion. On the public markets, consumer digital security company Aura was the only sizable venture-backed IPO, after completing an acquisition of Qoria and renaming the combined company.
The overall funding environment for cybersecurity startups looks upbeat, according to Crunchbase, reflecting growing concerns about risks from rapidly advancing AI technology. The article notes that while this is not reassuring for most people, it gives cybersecurity founders an expanding set of hazards to address.