Why is cybersecurity leading the unicorn charge?

In February 2025 nine new companies joined the Crunchbase Unicorn Board. And cybersecurity is one of two sectors leading the charge for new unicorn businesses (along with healthcare). 

Within both cyber and healthcare, AI tech is playing a central role in unicorn growth; and private equity is driving their growth. In total, those nine unicorns added USD $15.6 billion in value (and $1.9 billion in funding) to the board. 

So why is cybersecurity leading the unicorn stampede in 2025? 

1. Because the threat landscape is exploding 

It goes without saying really, doesn’t it. 

Data from ISACA’s State of Cybersecurity 2024 report shows that 55% of enterprises reported more cyber attacks in 2024 than in 2023 (up from 48% reporting more in 2023). Industry leaders predict those figures will rise again in 2025. 

Cybersecurity is a top concern for governments around the world, as well as for private organisations. So innovative startups and established cybersecurity firms recognise the need to grow in order to meet market demands. 

2. Investors are focused on cybersecurity innovations 

The threat landscape growth and surging demand for cybersecurity solutions means that investor interest is booming too. Venture capitalists are chasing opportunities in this space, and the reality that cyber threats are here to stay gives them the confidence to invest big. 

Private equity firms, government-backed funds, and existing tech giants are also pouring money in the cybersecurity sector. The influx of funding means that innovative startups can grow fast – reaching billion-dollar valuations in just a few years. 

3. AI and automation are enabling cybersecurity firms to grow 

AI is one of the top technologies attracting investor interest right now. And in cybersecurity, AI is everywhere. It’s fast becoming an essential route to creating security operations that can withstand the volume and pace of modern threats. 

Organisations across industries need intelligent, adaptive systems that can detect and neutralise attacks in real time. 

So AI-powered cybersecurity companies are a major focus for investors right now: with the potential to scale fast and deliver a high ROI. 

4. Cybersecurity is a global challenge 

It doesn’t just affect some of us. It affects all of us. So unlike industries that only have regional market demand, cybersecurity is global; with almost every organisation in the world needing some form of cybersecurity protection. 

This means that cybersecurity companies can scale in a global market and increase their valuations to billion-dollar status quickly. 

5. It’s a government requirement 

Increasingly, cybersecurity isn’t optional – it’s a requirement. Governments are cracking down on cybersecurity regulations and developing stringent compliance requirements that businesses must meet if they want to remain in operation. 

So organisations have to invest in cybersecurity solutions if they want to avoid large fines or potential disruptions to service. 

The result? Startups that offer compliance-as-a-service, automated security auditing, and other innovative solutions to streamline the compliance process are seeing a rapid surge in demand and galloping towards unicorn status. 

Demand, investment, and innovation driven by urgency 

Everyone needs cybersecurity. So investments are rising and the pace of innovation will continue to accelerate. 

So we expect to see more security unicorns hitting the Crunchbase board over the coming year. Will your business be one of them?

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