Cybersecurity Market Update: May 2024 Insights & Trends

Check out May 2024's cybersecurity market trends, cybersecurity investments, major acquisitions, and global insights.

Welcome to the monthly wrap-up issue of Return on Security, where I’ll cover this month’s most relevant cybersecurity market and funding updates. I spend hours collecting, curating, and analyzing this information every week, so you don’t need to - here we go👇

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Table of Contents

⚠️ Important: All of the charts are interactive, so you can click around, filter, hover over, and even download the data to get the most out of it.

By the Numbers

Coming off the heels of the RSA Conference in the first week of May, the industry saw a resurgence of larger and later-stage deals. This uptick in funding is consistent with the funding increases across the industry each year.

Funding Insights

The cybersecurity industry extended its funding rally in May 2024, reaching $1.7 billion, a 13% increase from April 2024. This marks the second month in a row in 2024 that funding has crossed over $1 billion.

May 2024 funding was distributed across 63 events in 38 unique cybersecurity product categories, with a major focus on cloud security and application security.

Wiz led the charge in May 2024 in the Cloud Security category, accounting for $1 billion in funding (58% of the month’s total) and continuing its meteoric rise and domination in the industry.

Here is a breakdown of funding by product category:

Global Distribution

In May 2024, the cybersecurity sector saw even more global investment activity, with firms from 13 countries securing significant funding.

American companies continued to lead the space, capturing 68% of the total funding, or $1.4 billion, across 43 events. Israel came in second, accounting for 9.5% of the total funding, or $61 million, through six events.

The United Kingdom, the Netherlands, and Spain tied for third place, each collecting 3.5% of total funding for May 2024. I expect a continued uptick in European funding, with Evolution Equity Partners raising $1.1 billion for a new cybersecurity and AI fund.

Mergers & Acquisitions

While May was not as busy as April by volume, with 22 transactions, May saw a few high-profile transactions accounting for $7.1 billion. In comparison, April saw 25 transactions accounting for over $12 billion.

Top Content For the Month

Some of my favorite Great Reads and other content from this past month.

And an interview I did with Daniel Miessler, which was a lot of fun!

Return on Security Newsletter Issues

Here are the past weekly newsletters from this month.

Data Methodology and Sources

  • All of the data is captured point-in-time from publicly available sources.

  • All financial figures are converted to U.S. dollars (USD) when collected.

  • Company country locations are pulled from publicly available sources.

  • Companies are categorized using our own system at Return on Security, and we write all of the company descriptions.

  • Sometimes, the details about deals, like who led the round, how much money was raised, or the deal stage, might get updated after the issue is first published.

  • Let us know if you spot any errors, and we’ll fix them.

About Return on Security

Return on Security is all about breaking down the cybersecurity industry for you with expert analysis, hard facts, and real-life stories. The goal? To keep security pros, entrepreneurs, and investors ahead in a fast-moving field. Read more about the “Why” here.

Feel free to borrow any data, charts, or advice you find here. Just make sure to give a shoutout to Return on Security when you do.

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