Cybersecurity Funding Jumps 25% to $4.2B in Q2 2025 as Average Deal Sizes Increase, New Report Finds

GRAND JUNCTION, Colo., July 8, 2025 /PRNewswire/ -- Pinpoint Search Group, a leading cybersecurity recruitment firm, has unveiled the findings of its Q2 2025 cybersecurity funding report. The quarter saw an overall 25 percent rise in investment in cybersecurity companies compared to Q2 2024, representing a notable upswing compared to Q2 2024. While the round count remained steady, the average deal size has ticked upward.

During Q2 2025, Pinpoint Search Group's research team recorded a total of 118 cybersecurity vendor transactions, including 100 funding rounds and 18 merger and acquisition (M&A) events.

A total of $4.2 billion was raised across the 100 funding rounds during the reporting period, compared with $3.4 billion across 98 funding rounds during the same quarter in 2024. While the round count remained steady, the increase in funding suggests that the average deal size increased.

The funding for the quarter represents almost double the $2.2 billion raised in Q1 2025 and takes the total funding for the year to date (YTD) up to $6.4 billion. This represents a 13 percent increase over the same period in 2024 and indicates investment in cybersecurity companies is something positive for investors to consider.

The data details how 100 funding rounds were tracked during Q2 2025, including eight rounds of funding exceeding $100 million, which accounted for 55 percent of all funding in the period.

Early-stage funding investment in Seed and Series-A start-ups continues to lead the funding landscape in 2025, representing 56 percent of all Q2 2025 funding rounds recorded. This is despite a 6 percent decline compared with the previous quarter.

Looking beyond the numbers, the investment environment is poised for continued evolution.

"While the 25 percent increase in funding volume signals renewed confidence in cybersecurity investments, the market dynamics tell a more nuanced story," said Mark Sasson, founder and managing partner at Pinpoint Search Group. "Investors are placing larger, more selective bets — evidenced by eight rounds exceeding $100 million accounting for 55 percent of all Q2 funding. But macro headwinds persist, with ongoing tech layoffs and enterprise budgets under scrutiny. Success in the second half of 2025 will require cybersecurity companies to demonstrate clear value propositions, strong go-to-market execution, and measurable outcomes rather than flashy features. The bar is higher, but for companies that can deliver on fundamentals, the rewards are substantial."

For the full Q2 2025 cybersecurity funding report, click here.

About Pinpoint Search Group 
Pinpoint Search Group is a leading cybersecurity recruitment firm and specializes in filling vice president, director, and senior individual talent. Pinpoint's collective experience recruiting hundreds of candidates in all segments of cybersecurity provides the company with the credibility to communicate with, qualify, and place professionals in today's most competitive area of technology. Pinpoint also produces Cybersecurity M&A and Vendor Funding Reports highlighting M&As and funding in the cybersecurity space monthly, quarterly, and annually.

Media Contact:
Christopher Joseph (CJ) Arlotta
CJ Media Solutions, LLC for Pinpoint Search Group
C: 631-572-3019
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SOURCE Pinpoint Search Group