Top Investments Q2 2025

Welcome back to Hall of Hacks Weekly!

We are excited to kick off the Q2 2025 Hall of Hacks, spotlighting the bright side of cybersecurity with record-breaking investments, billion-dollar raises, and sector-wide momentum shaping the future of digital defense. After a historic first quarter, Q2 2025 kept up strong activity with 104 disclosed investments totaling billions of dollars across diverse segments.

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🔐 Cybersecurity Investments in Q2 2025

Q2 reflected sustained investor appetite, from early-stage seeds to multi-billion-dollar late-stage rounds. The most active domains included application security, threat detection, network security, and data protection, showing that enterprise resilience and AI-driven defense remain top priorities

💰 Key Segments That Attracted Capital

Here is how investors distributed their money across the cybersecurity ecosystem in Q2:

Application and Software Security (19 deals)

Developers of AI-augmented testing and vulnerability remediation tools continued to attract funding.

Threat Detection and Response (19 deals)

Still a top target for capital, with platforms tackling AI-driven SOC automation and fraud prevention.

Network and Infrastructure Security (18 deals)

From secure connectivity to defense technology, funding expanded global cyber and physical security.

Data Protection (17 deals)

Rising demand for sensitive data safeguards drove strong deal flow, especially in SaaS and AI platforms.

Identity and Access Management (9 deals)

Identity remained critical to zero trust strategies, with authentication and fraud prevention attracting attention.

Security Awareness and Training (8 deals)

Funding supported platforms advancing real-time simulations and awareness training.

Endpoint Security (6 deals)

Investors backed endpoint resilience technologies as edge-based threats increased.

Cloud Security (3 deals)

Strategic investments including Cato Networks’ $359M reinforced the importance of SaaS and multi-cloud posture.

Governance, Risk and Compliance (3 deals)

Automation-led compliance and fraud detection startups earned meaningful attention.

Managed Security Services (2 deals)

Akamai’s mega-round highlighted the importance of outsourced resilience in enterprise cybersecurity.

💼 Notable Funding Rounds

 Some standout investments that shaped Q2 2025 include:

• Anduril raised $2.5B in Series G (Network and Infrastructure Security, AI-powered defense systems).

• Cyera closed $540M in Series E at a $6B valuation (Data Protection).

• Cato Networks secured $359M in Series G at a $4.8B valuation (Cloud Security).

• Chainguard raised $356M in Series D (Supply Chain Security).

• Persona raised $200M in Series D at a $2B valuation (Identity and Access Management).

• Veza raised $108M in Series D (Data Protection).

• Coralogix raised $115M in Series E (Data Protection).

• Tailscale raised $160M in Series C (Network and Infrastructure Security).

• SandboxAQ raised $150M in Series E (Quantum-safe products, Network and Infrastructure Security)

🌍 Geographic Distribution

Investors: Majority U.S.-based, with significant contributions from Israel, the UK, Canada, France, Germany, India, and Switzerland.

Investees: The United States continued to dominate, but Israel, Canada, and several European markets showed strong deal activity

🔎 Why These Investments Matter

Q2 reinforced that cybersecurity is central to both enterprise defense and national resilience:

• Defense-grade AI platforms like Anduril redefined the scale of cyber-physical funding.

• Data protection and compliance advanced with Cyera and Coralogix showing maturity in high-value data defense.

• Cloud and identity solutions remained cornerstones for scaling enterprises, demonstrated by Cato, Persona, and Veza.

• Quantum-safe innovation accelerated with SandboxAQ’s $150M round.

• Managed services regained prominence, exemplified by Akamai’s $1.5B financing.

📅 Coming Next Week

Stay tuned for our Q2 2025 M&A Breakdown, where we will spotlight the strategic acquisitions, consolidations, and exits shaping cybersecurity’s global future.

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