Cybersecurity funding surges in q3 2026, driven by AI investments

Global cybersecurity and privacy startups raised $6.8 billion in the third quarter of 2026, according to Crunchbase data, marking a 50% increase from the previous quarter and the highest quarterly total in years. The surge was driven by larger funding rounds rather than an increase in the number of deals. AI startups dominated the funding, with at least 18 companies securing $100 million or more in this quarter. Keyfactor, an enterprise identity security provider, led with a $1 billion round in July, while Island and Cyera each raised $400 million. Cyera also acquired Oasis Security for around $1 billion. Visa acquired BioCatch for $2.4 billion to enhance its fraud detection capabilities. Aura completed a $600 million acquisition of Qoria, renaming the company Aura. The funding environment remains robust despite a sluggish IPO market, reflecting growing concerns over AI-related cybersecurity risks.