Cybersecurity startups secured $4.9 billion in global venture funding during Q1 2026, according to Crunchbase data. While that's a slight dip from the previous quarter, it remained well above year-ago levels. The sector saw just under 200 funding rounds, with 13 deals hitting $100 million or more.

Cloaked, a consumer privacy startup, led the pack with a $375 million Series B—the largest cybersecurity round of the quarter. Tenex.AI and Upwind Security each closed $250 million Series B financings, focusing on AI-enabled and cloud security respectively. The dominance of AI in cybersecurity funding reflected a broader trend, with AI-related categories capturing 80% of all global venture funding in Q1.

Acquisition activity stayed robust. CrowdStrike purchased identity access management startup SGNL for $740 million, while Palo Alto Networks acquired agentic endpoint security provider Koi for $400 million. IPO activity remained quiet, with no major cybersecurity offerings during the quarter.