Cybersecurity Startups Raised $6.8 Billion in Third Quarter

Startups working in cybersecurity and privacy raised $6.8 billion worldwide in the third quarter of 2026, roughly 50% more than in the second quarter and among the strongest three-month totals in several years, according to Crunchbase News.

The gain came from bigger checks rather than more deals. Crunchbase data showed the number of rounds fell from the prior quarter at every stage. At least 18 companies combining AI with security work closed rounds of $100 million or larger during the quarter, with identity security drawing particular attention.

Keyfactor, an Ohio-based enterprise identity security firm founded in 2001, took the largest single round with $1 billion in July, led by Summit Partners. Dallas-based Island raised a $400 million Series F in September led by Evolution Equity Partners at a $6.4 billion post-money valuation. Cyera, a New York data security company, also raised $400 million in September in a round led by Goldman Sachs Growth Equity, valuing it at $12 billion three months after a $600 million raise.

On the deal side, Visa bought fraud-detection company BioCatch for $2.4 billion in August. Cyera acquired Oasis Security in a transaction reported at about $1 billion. Boston-based Aura was the quarter's only sizable venture-backed listing, following its July purchase of Australian public company Qoria.

This story was first reported by Crunchbase News.