State of Cyber Q3 2025
$12.9 billion in funding set to surpass 2024.
The third quarter just ended saw a slight pull back in hiring in the cybersecurity industry. Yet M&A and investments are continuing at a healthy pace and may exceed 2024.
Today at Noon Eastern I presented presented a webinar on the current state of the industry.
As of the end of the third quarter 2025 the IT-Harvest Dashboard tracks 3,952 active cybersecurity companies with an additional 613 that have been archived because they were absorbed into another brand or have otherwise ceased operation.
This is how the industry stacks up by major category.
In Q3 AI Security surpassed IoT security in number of vendors. We now track 172 AI Security vendors. If you are not familiar with the fastest growing AI Security vendors you should check these out.
Legion Security’s growth is not a typo. They started the year with one employee. There have already been twelve acquisitions of AI Security vendors over the last year. Five of those in September.
Note that two of the Cyber 150 are included in the list. (We track and publish the 150 fastest growing mid-size vendors and publish the list in*Security Yearbook* every year). I will be talking about each of these fastest growing vendors in today’s webinar.
Total investment so far this year is $12.9 billion. This is on track to exceed 2024 investments of $16 billion.