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Security VC Funding Hit Record $5.3 Billion in 2018

January 21, 2019 / Jessica Lyons Hardcastle

It’s official. Cybersecurity venture capital funding hit a record $5.3 billion in 2018, according to Strategic Cyber Ventures. This is 20 percent higher than the $4.4 billion companies raised in 2017 and 81 percent higher than in 2016. But, as the VC firm warns, “this rate of investment is not sustainable.” There are likely many security “zombies” that initially raised big rounds but are now experiencing slowed growth. These companies “are being propped up by existing investors that will eventually grow weary of keeping them alive.” While the total funding grew year over year, the total number of 2018 deals remained nearly the same with the average investment coming in at $15.8 million. Some of these mega-deal winners — like Tanium, which raised $100 million and CrowdStrike, which closed a $200 million Series E — are expected to go public this year. But things like the U.S. government shutdown and trade wars with China may make the ...