Security, Funded is a weekly intelligence briefing on the economic activity in the cybersecurity industry. This week’s issue is brought to you by The Signal.
Hoppy Easter to all those who celebrate! 🐰 🥚
Have you managed to do it yet? Have all those follow-up conversations you said you would after the RSA Conference? No? Yeah, I’m still working through mine, too. I didn’t forget you, I’m just not there yet!
A LOT has happened in the world since the last issue. The US-Iran escalation continues with no clear end state, the stock markets are still getting wrecked, Delve continues its downward spiral, so many new open source software compromises, and OpenAI raised a new funding round worth more than CrowdStrike's market cap, with an $850+ billion (yes, nearly $1 trillion) valuation.
Thank goodness for that Easter candy! 😬
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Table of Contents
😎 Vibe Check
Click the options below to vote on whether you are a practitioner, founder, or investor. Feel free to leave a comment, and I'll feature the best takes in next week’s write-up!
What's the biggest gap in the security of AI agents right now?
Last issue’s vibe check:
AI Agents are so 2025. What's the next, next AI-driven security frontier that's getting funded next?
🟨🟨🟨⬜️⬜️⬜️ Skills
🟩🟩🟩🟩🟩🟩 Harnesses
🟨🟨🟨🟨⬜️⬜️ Pipelines
🟩🟩🟩🟩🟩🟩 Swarms
That’s the first two-way tie we’ve had this year. Both “harnesses” and “swarms” won the vibe check last week, and I know this was a bit of a silly poll framing, but I think it reveals what security people want to see happen.
Harneses = guardrails and observability around agents to make them safer.
Swarms = multi-agent coordination and teamwork among agents.
If you asked me what I’d most want from AI agents for my cyber program, it would be both of those. This week’s new vibe check relates to this because there’s so much to explore in this area.
Some of the top comments from last week’s vibe check:
💬 “Swarms…the same word we use to describe hoards of nasty things that surround and attack us or others. Seems like the next evolutionary step.” 💡 🧠
🔭 Zooming Out
Stories hidden in the numbers
Service Signals - Capital has been flowing into people-driven cyber businesses over the last six months, in what is becoming a growing trend, in and outside of cyber. It’s a tale of two markets, however, where VCs are funding the parts that automate what humans do (previously human-delivered services with some automation/augmentation), and PE and strategic acquirers are consolidating human-delivered services at a pace of more than three acquisitions a week.
💰 Market Summary
Private Markets
13 deals from 11 companies across 4 countries raised $512.4M across 9 unique categories
Average disclosed deal size was $51.2M (median: $29.0M)
82% of funded companies were product companies
2 companies from 2 countries were acquired across 2 unique categories
All acquired companies this week were service companies
Public Markets
No public cyber companies had an earnings report last week
📸 YoY Snapshot
Rolling 13-week charts that compare funding and acquisitions week over week, year over year, comparing the end of 2024 vs. 2025 with the start of 2025 vs. 2026.
A small volume, but mighty dollar figure week on the funding front. This is a good example of waiting to make a big splash after RSA. Timing is everything.
A slower week on the M&A front, but M&A volume is still up 21% year-to-date for 2026.
🧩 Funding By Product Category
$250.0M for Managed Detection and Response (MDR) across 1 deal
$80.0M for Threat and Risk Prioritization across 1 deal
$70.0M for Attack Surface Management (ASM) across 2 deals
$50.0M for Identity Governance & Administration (IGA) across 1 deal
$50.0M for Physical Security across 1 deal
$8.0M for Network Security across 1 deal
$3.0M for Trust & Safety across 3 deals
$1.4M for Internet of Things (IoT) Security across 1 deal
$35.0K for Professional Services across 2 deals
🏢 Funding By Company
Product Companies:
TENEX.AI, a United States-based managed threat detection and response (MDR) platform, raised a $250.0M Series B from Crosspoint Capital Partners. (more)
depthfirst, a United States-based threat and risk prioritization platform, raised an $80.0M Series B from Meritech Capital Partners. (more)
Censys, a United States-based attack surface management (ASM) platform, raised a $40.0M Series D from Morgan Stanley Expansion Capital and secured $30.0M in debt financing. (more)
Alcatraz AI, a United States-based secure building entry and access platform, raised a $50.0M Series B from BlackPeak Capital, Cogito Capital Partners, and Taiwania Capital Management Corporation.
Linx Security, a United States-based identity governance and administration (IGA) platform, raised a $50.0M Series B from Insight Partners.
Huskeys, an Israel-based AI-driven edge security management (ESM) platform, raised an $8.0M Seed from SV Angel, toDay Ventures, 10D, Cyber Club London, and Alumni Ventures. (more)
PENEMUE, a Germany-based dis/misinformation and online trust platform, raised a $2.0M Seed from 4seedimpact.
Test of Things, a Finland-based automated IoT security testing and response platform, raised a $1.4M Pre-Seed from Vendep Capital.
Limbik, a United States-based trust and safety platform focused on identifying and fighting misinformation and disinformation, raised a $1.0M Venture Round and secured undisclosed debt financing.
Service Companies:
Kanuki, a United States-based professional services firm focused on compliance and security assessments, raised a $35.0K Pre-Seed. (SEC Filing - may be incomplete)
Digital Alliance Global Group, a United States-based professional services firm focused on virtual CISO and digital transformation services for Caribbean and Latin American companies, raised an undisclosed Pre-Seed.
SEC filings may reflect partial or interim fundraising and can understate the final round numbers.
🌎 Funding By Country
$501.1M for the United States across 10 deals
$8.0M for Israel across 1 deal
$2.0M for Germany across 1 deal
$1.4M for Finland across 1 deal
🤝 Mergers & Acquisitions
Product Companies:
None
Service Companies:
Priority 1 Technology Solutions, an Australia-based managed security services provider, was acquired by EFEX for an undisclosed amount. Priority 1 Technology Solutions has not previously disclosed funding. (more)
Zero-Point Security, a United Kingdom-based professional services firm focused on penetration testing and red teaming assessments, was acquired by Fortra for an undisclosed amount. Zero-Point Security has not previously disclosed funding. (more)
📚 Great Reads
I’m Sick of Reading AI-Written Posts - Florian Roth says the quiet parts out loud about how we all see and feel in the cyber industry and broader.
Vulnerability Research Is Cooked - AI has fundamentally changed how software, and by proxy vulnerabilities, are produced. This also changes the shape of vulnerability research and where we go from here.
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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) at the current spot rate at the time of collection.
Company country locations are pulled from publicly available sources.
Companies are categorized using the Return on Security system.
Sometimes the deal details, such as who led the round, how much was raised, or the deal stage, may be updated after publication.
Let us know if you spot any errors, and we’ll fix them.