California Dominates US CyberTech Landscape: Over a Third of 2024 Deals Secured

California Dominates US CyberTech Landscape: Over a Third of 2024 Deals Secured

The landscape of US CyberTech investments saw a significant shift in 2024, with funding increasing by 15% year-over-year. This growth underscores the sector’s resilience and evolving dynamics amidst fluctuating deal activity.

Overview of US CyberTech Funding in 2024

The CyberTech sector in the United States experienced a mixed year in 2024. While funding surged, there was a noticeable decline in deal activity compared to 2023.

  • Total funding reached: $7.2 billion, a 15% increase from $6.3 billion in 2023.
  • Deal activity: Only 246 funding rounds completed, marking a 36% decrease from the previous year (382 deals in 2023).
  • Comparison to 2020: The current funding slightly surpasses the $7.2 billion recorded in 2020.

This discrepancy between rising funding and falling deal counts indicates a trend where investors are focusing on larger, high-value transactions within the CyberTech realm, even as overall deal-making activity remains low.

State-by-State Analysis of CyberTech Deals

California continued to dominate the CyberTech landscape, accounting for over one-third of all US deals in 2024.

Top States by Deal Activity

  • California: 86 deals (35% share), despite a 26% decline from 116 deals in 2023.
  • New York: 32 deals (13% share), down 30% from 46 deals in the previous year.
  • Texas: 13 deals (5% share), experiencing a 48% drop from 25 deals in 2023.

These trends illustrate a consolidation of investment activity in key states, reflecting a shifting focus within the US CyberTech market.

Major Deals: Kiteworks’ Significant Funding Round

One of the standout stories in 2024 was Kiteworks, a secure content company specializing in protected data sharing. The firm raised an impressive $456 million in a funding round, marking it as one of the largest CyberTech deals of the year.

  • Funding round leaders: Insight Partners and Sixth Street led the investment.
  • Valuation: The investment represented a minority stake, valuing Kiteworks at over $1 billion.
  • Historical funding: Kiteworks has raised a total of $592 million since its founding in 1999, previously known as Accellion.
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This latest influx of capital will enable Kiteworks to enhance its secure data exchange platform, promoting trusted communication for clients managing sensitive information.

For further insights into the CyberTech industry, consider visiting CyberTech Report for the latest updates and trends.

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