Key US CyberTech investment stats in 2024:
- US CyberTech funding increased by 15% in 2024 YoY
- California solidified its position as US CyberTech leaders as they secured over a third of all deals
- Kiteworks, a secure content company specialising in protected data sharing across communication channels, secured a $456m funding round making it one of the biggest CyberTech deals during the year
US CyberTech funding increased by 15% in 2024 YoY
The US CyberTech market experienced a mixed year in 2024, showing a notable recovery in funding but a continued decline in deal activity compared to 2023.
Total funding reached $7.2bn in 2024, up 15% from $6.3bn in 2023 and slightly surpassing the $7.2bn recorded in 2020.
However, deal activity declined significantly, with only 246 funding rounds completed in 2024, a 36% decrease from the 382 transactions recorded in 2023 and a 53% drop from the 527 deals in 2020.
This divergence between funding and deal count suggests a shift in investor focus toward larger, high-value deals within the CyberTech sector, even as overall activity remains subdued.
California solidified its position as US CyberTech leaders as they secured over a third of all deals
California maintained its position as the most active state for US CyberTech deals in 2024, completing 86 deals (35% share).
While this represents a 26% decline from the 116 deals recorded in 2023, California’s share of total deals increased, underscoring its growing influence in the sector.
New York ranked second with 32 deals (13% share), down 30% from 46 deals in 2023, while Texas completed 13 deals (5% share), a 48% drop from 25 deals in the prior year.
These shifts reflect a consolidation of activity within key states, even as the overall US CyberTech market continues to evolve.
Kiteworks, a secure content company specialising in protected data sharing across communication channels, secured a $456m funding round making it one of the biggest CyberTech deals in the year
The $456m growth equity round was led by Insight Partners and Sixth Street.
The California-based firm described this as a “partial liquidity event,” allowing some investors to cash out, while still representing a minority investment that values Kiteworks at over $1bn.
Founded in 1999 and formerly known as Accellion, Kiteworks has now raised a total of $592m, following a prior $120m round in 2020 led by Bregal Sagemount.
This latest funding will support Kiteworks in advancing its secure data exchange platform, facilitating trusted communication for clients managing sensitive data.
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