Key Takeaways
- • Global cybersecurity and privacy startups raised $6.8 billion in Q3 2026, up about 50% from the prior quarter and tied for the highest quarterly total in years, according to Crunchbase data.
- • The increase was driven by larger round sizes rather than more deals, as round counts declined sequentially across all stages.
- • At least 18 companies at the intersection of AI and cybersecurity closed rounds of $100 million or more in the quarter, with identity security a particular focus.
- • Keyfactor led all fundraisers with a $1 billion July growth round led by Summit Partners.
- • Visa's $2.4 billion acquisition of anti-fraud provider BioCatch in August was the largest exit in the quarter, while Aura was the lone sizable venture-backed public debut.
Summary
Global cybersecurity- and privacy-focused startups raised a combined $6.8 billion in the third quarter of 2026, according to Crunchbase data. The total is up roughly 50% from the second quarter and ties for the highest quarterly tally in several years. Crunchbase notes that the gain came from larger rounds rather than greater deal volume, since round counts fell sequentially across all stages.
AI-focused companies accounted for the large majority of cybersecurity funding, with identity security a particular area of concentration. At least 18 companies at the intersection of artificial intelligence and cybersecurity closed rounds of $100 million or more during the quarter.
Keyfactor, an enterprise identity security provider, was the largest recipient by a wide margin, raising $1 billion in a July growth round led by Summit Partners. Founded in 2001, the Ohio-based company has drawn most of its venture funding over the past decade, and its pivot to AI is more recent. Dallas-based Island tied for second place with a $400 million September Series F led by Evolution Equity Partners, which set a post-money valuation of $6.4 billion. Island offers tools for enterprises to monitor and govern how people and AI agents interact with applications and data. New York-based Cyera also raised a $400 million growth equity investment led by Goldman Sachs Growth Equity in September, three months after a $600 million raise, valuing the company at $12 billion.
M&A activity was also notable. Visa's $2.4 billion purchase of anti-fraud technology provider BioCatch in August was the largest deal, and is part of Visa's broader effort to strengthen fraud detection for the AI era. Cyera acquired Oasis Security, an enterprise access management platform for AI agents, in a deal reportedly valued at about $1 billion. On the public markets, the IPO market was sluggish; Aura, a Boston-based digital security services provider for consumers, was the lone sizable venture-backed debut after completing its acquisition of Australian listed company Qoria in July and renaming the combined company Aura.
Crunchbase characterizes the quarter as upbeat for cybersecurity funding, a trend it links to ongoing concern over risks from rapidly advancing AI technology. The firm says it will monitor whether investment momentum continues in the current quarter.
AI-focused companies accounted for the large majority of cybersecurity funding, with identity security a particular area of concentration. At least 18 companies at the intersection of artificial intelligence and cybersecurity closed rounds of $100 million or more during the quarter.
Keyfactor, an enterprise identity security provider, was the largest recipient by a wide margin, raising $1 billion in a July growth round led by Summit Partners. Founded in 2001, the Ohio-based company has drawn most of its venture funding over the past decade, and its pivot to AI is more recent. Dallas-based Island tied for second place with a $400 million September Series F led by Evolution Equity Partners, which set a post-money valuation of $6.4 billion. Island offers tools for enterprises to monitor and govern how people and AI agents interact with applications and data. New York-based Cyera also raised a $400 million growth equity investment led by Goldman Sachs Growth Equity in September, three months after a $600 million raise, valuing the company at $12 billion.
M&A activity was also notable. Visa's $2.4 billion purchase of anti-fraud technology provider BioCatch in August was the largest deal, and is part of Visa's broader effort to strengthen fraud detection for the AI era. Cyera acquired Oasis Security, an enterprise access management platform for AI agents, in a deal reportedly valued at about $1 billion. On the public markets, the IPO market was sluggish; Aura, a Boston-based digital security services provider for consumers, was the lone sizable venture-backed debut after completing its acquisition of Australian listed company Qoria in July and renaming the combined company Aura.
Crunchbase characterizes the quarter as upbeat for cybersecurity funding, a trend it links to ongoing concern over risks from rapidly advancing AI technology. The firm says it will monitor whether investment momentum continues in the current quarter.
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