Key US CyberTech investment stats in H1 2024:
- US CyberTech funding increased by 17% YoY
- California continued to dominated the US CyberTech market with 36% of the deals from the country for H1
- Reach Security, a trailblazing startup in the cybersecurity space, has made its entrance and presence felt the US CyberTech market with a $20m Series A funding round
In H1 2024, the US CyberTech industry saw a decrease in deal activity, despite an increase in overall funding. The sector recorded 120 funding rounds, a 21% decrease from the 151 deals completed in H1 2023. However, US CyberTech companies raised $4.6bn during the same period, marking a 24% increase from the $3.7bn raised in H1 2023. This divergence between deal volume and funding highlights a trend toward larger, more concentrated investments in fewer companies.
California remained the most active CyberTech market in the US, with companies in the state completing 54 deals (36.24% share) in H1 2024. This represents a 21% decrease from the 68 deals recorded in H1 2023. New York followed with 19 deals (12.75%), down 30% from the 27 deals closed in H1 2023. Delaware, with 8 deals (5.37%), emerged as the third most active state, replacing Texas, which had completed 12 deals in H1 2023. This switch between Delaware and Texas underscores the dynamic shifts within the CyberTech landscape, with newer states emerging in prominence.
The reduction in deal activity, particularly in traditional hubs like California and New York, highlights the challenges the CyberTech industry faces, even as funding levels increase. The contraction in deals across key states, paired with the rise of Delaware, suggests a realignment within the sector, with investors focusing on fewer but higher-value opportunities. This may reshape the growth trajectory and innovation pace in the US CyberTech industry.
California-based Reach Security, a trailblazing startup in the cybersecurity space, has made a significant entrance with a $20m Series A funding round led by Ballistic Ventures, alongside contributions from Artisanal Ventures and prominent industry figures such as former Palo Alto Networks CEO Mark McLaughlin and Snowflake CMO Denise Persson. Existing investors like Webb Investment Network and Ridge Ventures also participated. Reach Security’s innovative AI-driven platform helps organizations optimize their existing cybersecurity products, addressing the widespread issue of underutilized tools and outdated configurations. By reprogramming an organization’s security infrastructure without the need for new sensors or simulations, Reach Security delivers rapid, actionable intelligence, positioning itself as a leader in transforming security operations.
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