Pinpoint Search Group, a leading cybersecurity recruitment firm has unveiled the findings of its Q1 2025 cybersecurity funding report. The quarter saw an overall 12 percent rise in deals compared with Q1 2024, signalling continued stabilization and interest in investment in cyber security businesses, despite a slight decline of 4 percent in funding raised when compared to the same period during the previous year.
During Q1 2025, Pinpoint Search Group’s research team recorded a total of 103 cybersecurity vendor transactions, including 85 funding rounds, 17 M&As and one IPO.
A total of $2.2 billion was raised in Q1 2025, a slight decline compared with the $2.3 billion raised in Q1 2024 — but the similarity of the figures indicates continued signs of market stability in the cybersecurity space.
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The data details how 85 funding rounds were tracked in Q1 2025, representing a 12 percent raise in funding volume compared with the first quarter of 2024, which saw 77 funding rounds — and something positive for investors to consider.
“Despite a minimal decline in funding raised, the increase in funding volume shows how there’s overall stability in the cybersecurity investment space,” said Mark Sasson, founder and managing partner at Pinpoint Search Group. “This represents a positive indicator for cybersecurity founders and industry professionals, particularly after a strong end to 2024 — and an increase in funding rounds suggests that innovative start-ups and organizations in the cyber security industry are still viewed as a good long-term investment.”
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Early-stage funding investment in Seed and Series-A start-ups continues to lead the funding landscape in 2025, representing 62 percent of all Q1 2025 funding rounds recorded — and a 3 percent rise compared with the previous quarter.
During the same reporting period, late-stage funding rounds — growth funding and Series C, D, E & G start-ups — represented 10.5 percent of Q1 2025 funding volume. Meanwhile, while late-stage funding volume was low in comparison it comprised of 38 percent of funding dollars raised in Q1 2025, indicating the perceived importance of larger investments in more mature companies.
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Source: PR Newswire
