Where VCs Are Investing in Cybersecurity

By Tom Taulli

Between a plunging stock market, rising interest rates and a slumping economy, raising venture capital has not been easy this year. This has even been the case for high-priority categories like cybersecurity.

According to data from PitchBook, venture capital investments have reached about $13.66 billion so far this year, down significantly from $26.52 billion in 2021.

Then again, this year has still fared quite well compared to 2020, when the venture capital haul was about $11.47 billion.

So despite the slowdown, there’s still some venture investment going on. Where are VCs focusing nowadays? Let’s take a look at some recent standout deals and see if there’s a pattern.


IT talent is particularly troublesome for the cybersecurity industry, with a persistent talent shortage that has continued to grow despite the down economy.

But for Cymulate, this has been a favorable trend. The company develops software that helps organizations of any size get an accurate security exposure risk assessment. This makes it so that a team can focus on priorities with more efficiency and speed.

Cymulate’s system continuously validates potential threat exposures, whether in the cloud or on-premises. This is done by using native security technology and analytics that allow for attack surface management, continuous red teaming, breach & attack simulation and advanced purple teaming. Customers see a nearly 50% reduction in cyber risk within the first three months of use.

In early September, Cymulate announced a Series D round of $70 million. The lead investor was One Peak and other investors included Susquehanna Growth Equity, Vertex Ventures Israel, Vertex Growth and Dell Technologies Capital.

“It’s no secret that the performance expectations of raising money have increased significantly in today’s climate,” said Eyal Wachsman, CEO of Cymulate. “However, investors remain interested when you have a great product and your revenue growth is outpacing the market. In 2021, Cymulate demonstrated 100% year-over-year growth, and the market opportunity for security validation products is estimated to be over $5 billion. Our current investors saw the continued opportunity and decided to increase their investments.”

Cymulate was also one of the winners of eSecurity Planet’s 2022 Cybersecurity Product Awards.