The threat of AI-enabled attacks looms large over businesses.
As AI increases the frequency and sophistication of cyber threats, investors are looking to emerging cybersecurity solutions to help enterprises prevent costly breaches. Advancements in generative AI are also carving out new cybersecurity needs, requiring companies to protect their data, models, and how employees use third-party tools.
Regulation from oversight bodies — like the SEC’s new rules governing cyber risk management and incident disclosure — is also a key driver for investors backing cybersecurity startups.
These forces are driving a flurry of activity at the early stages of funding (seed/angel and Series A) in the cybersecurity sector, where startups are developing next-gen solutions to stay one step ahead of attackers.
To see where cybersecurity tech is heading in 2024, we looked at the tech markets with the most early-stage activity in 2023:
- Breach & attack simulation
- Cyber risk management
- Database security
- Identity & access management
- Machine learning security (MLSec)
- Security awareness training
We dig into the trends shaping each market below.
