Europe cybersecurity venture capital hits $1 billion in Q1 2026 as early-stage bets dominate

Europe attracted $1 billion in cybersecurity venture capital investment in the first quarter of 2026, a figure that places the sector on track to match 2025’s full-year total, which was the second-highest in a decade. According to data from PitchBook News, 61 transactions closed during the period, indicating a structural shift towards larger early-stage investments. While the cadence of dealmaking has slowed compared to the previous year, the average deal size has expanded significantly, suggesting investors are concentrating capital on perceived category winners rather than spreading it across a broader range of opportunities.

This concentration of funding aligns with a broader global trend where early-stage deal values have exceeded late-stage values for the first time in more than three years. The global median for cybersecurity rounds in the first quarter reached $25 million, more than double the 2025 figure and substantially higher than the late-stage median of $17.5 million. Of the largest European rounds in the vertical during Q1, six were for early-stage companies, while only two were late-stage, underscoring the pivot in investor appetite towards younger, high-growth potential firms.

The move toward younger companies coincides with the rise of AI-native cybersecurity startups securing substantial funding. Tel Aviv-based Gambit Security, which develops an AI-based cyber resilience platform, raised $61 million in February from investors including Spark Capital, Kleiner Perkins, and Cyberstarts. Similarly, Belgium-based Aikido Security, an AI penetration testing provider, reached unicorn status in January with a $60 million Series B led by DST Global. Israeli insider-threat platform Above also raised $50 million in March, further illustrating the premium placed on advanced, technology-driven security solutions.

Security operations, a segment covering real-time detection, investigation, and response to threats, emerged as the largest area for venture capital activity. This growth is being buoyed by the increasing visibility of AI-driven threats and expanding enterprise budgets dedicated to these capabilities. The sector’s performance follows a near-record year for European cybersecurity venture capital funding in 2025, with Q1 2026 maintaining that momentum despite a lower overall number of deals.

The data, originally published in The Europe Pitch newsletter, highlights a maturing market where capital efficiency and technological sophistication are driving valuations. As AI-native solutions continue to reshape the threat landscape, investors appear willing to commit larger sums to early-stage entities capable of addressing these complex challenges, setting a potentially higher baseline for full-year investment totals in the region.