Cyber security startups brought in a "record-shattering" $29.5 billion in venture capital spending globally across 2021, according to new data.
The investment total amounts to more than double the number reported in 2020, which was just $12 billion, as reported by financial advisory firm Momentum Cyber.
RELATED RESOURCE
The best defence against ransomware
How ransomware is evolving and how to defend against it
The firm said the increase was largely driven by a rise in cyber threats, with notable data breaches and ransomware attacks spread throughout the year. Investors poured a record amount of capital into 1,042 transactions as a result, with 82 of these being greater than $100 million.
A record number of security startups also reached unicorn status, with more than 30 minted by the end of 2021, including Wiz and LaceWork. That's compared to just six startups managing to achieve the same the year before.
IPOs were also up for the year, with companies like Darktrace and SentinelOne helping to raise $2.2 billion on the stock market. Cyber security stocks consistently performed well and even outperformed the NASDAQ, according to Momentum.
"We are entering a new age of cyber security risk that is testing our defences across every commercial and government organisation," said Dave DeWalt, founder and managing director, Momentum Cyber. "It is the responsibility of defenders like us to keep investing in and nurturing innovation to combat this existential threat and ensure a safe and secure future for all."
Separately, the cyber security industry also saw record amounts of money generated via mergers and acquisitions. The 286 transactions in 2021 added up to $77.5 billion, over three times higher than in 2020. The number was inflated by billion-dollar acquisitions, such as the $14.1 billion deal for McAfee.
The cyber risk of blockchain and cryptocurrencies
2021 will more likely be remembered as a year littered with data breaches and ransomware. There were notable attacks on core infrastructure, such as the Colonial Pipeline and the Irish Health System. This was in addition to large-scale supply chain attacks, such as SolarWinds and Microsoft Exchange.
Looking to 2022, Momentum's report suggests investors will focus on cyber security's "emerging relationship" with cryptocurrency and blockchain.
"While it remains to be seen how these sectors will evolve over the coming year, investors will certainly be paying close attention," the report notes.
-
Cleo attack victim list grows as Hertz confirms customer data stolen – and security experts say it won't be the lastNews Hertz has confirmed it suffered a data breach as a result of the Cleo zero-day vulnerability in late 2024, with the car rental giant warning that customer data was stolen.
-
‘Phishing kits are a force multiplier': Cheap cyber crime kits can be bought on the dark web for less than $25 – and experts warn it’s lowering the barrier of entry for amateur hackersNews Research from NordVPN shows phishing kits are now widely available on the dark web and via messaging apps like Telegram, and are often selling for less than $25.
-
Healthcare systems are rife with exploits — and ransomware gangs have noticedNews Nearly nine-in-ten healthcare organizations have medical devices that are vulnerable to exploits, and ransomware groups are taking notice.
-
Alleged LockBit developer extradited to the USNews A Russian-Israeli man has been extradited to the US amid accusations of being a key LockBit ransomware developer.
-
February was the worst month on record for ransomware attacks – and one threat group had a field dayNews February 2025 was the worst month on record for the number of ransomware attacks, according to new research from Bitdefender.
-
CISA issues warning over Medusa ransomware after 300 victims from critical sectors impactedNews The Medusa ransomware as a Service operation compromised twice as many organizations at the start of 2025 compared to 2024
-
Warning issued over prolific 'Ghost' ransomware groupNews The Ghost ransomware group is known to act fast and exploit vulnerabilities in public-facing appliances
-
The Zservers takedown is another big win for law enforcementNews LockBit has been dealt another blow by law enforcement after Dutch police took 127 of its servers offline
