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Top 5 Cybersecurity Investors in 2025: Complete Founder's Guide (Seed → Growth)

Deqian Jia
Deqian Jia
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Cybersecurity InvestorsCyber InvestorsFundraisingVenture CapitalStartups

Cybersecurity fundraising in 2025 is a weird mix of "budget tailwinds" and "higher bar for proof." The good news: the best cyber-specialist investors are still deploying—but they're looking for sharper wedges (AI security, identity, cloud, software supply chain, data security, SecOps automation) and clearer paths to distribution.

When preparing your pitch to cybersecurity investors, having a professional data room is essential. Peony helps cybersecurity startups organize investor materials with AI-powered document organization, track investor engagement with page-level analytics, and securely share sensitive financial and operational data. With transparent pricing at $40/user/month, Peony delivers enterprise-grade secure data rooms without the $5,000-20,000 per-deal costs of legacy platforms.

This guide is built for founders who want a short, high-conviction list—not 50 logos. These are five of the highest-reputation, cyber-focused firms that remain active and widely respected by founders and other investors.

1) How to pick the right cybersecurity investors (the best-fit filter)

A. Start with your security "category" (investors don't bucket you the way you do)

Most cyber specialists mentally sort startups like this:

  • Identity & access (IAM, ITDR, PAM, auth, secrets)
  • Cloud & infra security (CSPM/CNAPP, runtime, containers, API security)
  • AppSec / software supply chain (SAST/DAST, SBOM, code scanning, vuln mgmt)
  • Data security & privacy (DSPM, encryption, governance)
  • SecOps / MDR / automation (SIEM/SOAR evolution, detection engineering, agentic workflows)
  • Security for AI (model risk, prompt injection, data exfil, AI governance)

Your "category story" should fit in one sentence and have a crisp buyer + budget line.

B. Match the investor to your go-to-market motion

Cyber is not one market—distribution varies wildly:

  • Bottom-up / developer-led (fast adoption, high product bar)
  • CISO-led enterprise (longer cycles, heavier proof)
  • Channel / MSSP / MDR (partner strategy matters early)
  • Platform ecosystems (cloud marketplaces, SI partners)

Pick investors who've scaled companies with your motion.

C. Stage-fit is everything in 2025

A cyber fund that "does early" may still prefer Series A+. Conversely, some seed specialists only lead early and won't follow on. Build your list around who can lead your round and reserve for the next one.

D. "Reputation" in cyber is often about pattern recognition

The best cyber investors are trusted because they've seen dozens of cycles—what sells, what doesn't, which problems are real, and which are hype. That pattern recognition is often more valuable than brand-name generalists.

2) The Top 5 Cybersecurity Investors (2025) — detailed founder-useful profiles

1) Cyberstarts (Cybersecurity-first; seed → breakout follow-on)

Why they're top-tier: Cyberstarts is one of the most influential cyber-focused firms of the past few years, with major wins (including Wiz) and a strong network of cyber operators and founders. Reuters highlighted Cyberstarts as a key early backer in Wiz's blockbuster outcome. (Reuters)

Proof they're actively deploying in 2025

  • Cyberstarts closed Opportunity Fund II ($380M) in 2025, and Business Wire reported they raised $700M+ in 2025 alone with $1.4B+ total commitments across funds. (Business Wire)
  • Reuters also reported their $300M employee liquidity fund in 2025. (Reuters)

What they're great for

  • Getting the right early-stage partner who understands cyber "power-law" outcomes
  • Helping you recruit, position, and navigate the CISO + enterprise buyer reality
  • Backing companies early and supporting them into breakout stages via follow-on vehicles. (Business Wire)

Notable signals / portfolio credibility

  • Cyberstarts highlights investments such as Wiz, Island, Fireblocks, Cyera, and more. (Cyberstarts)

How to pitch Cyberstarts

  • Bring a sharp "why now" threat shift + a wedge that becomes a platform
  • Show early evidence that CISOs/security teams actually care (design partners, pipeline, pilots, technical validation)

2) Ten Eleven Ventures (Cyber-only, multi-stage; one of the most established specialists)

Why they're top-tier: Ten Eleven is a cybersecurity-dedicated VC firm with a long track record and multi-stage posture. (Ten Eleven)

What they invest in

  • Explicitly: "dedicated to igniting the next generation of innovative cybersecurity companies." (Ten Eleven)
  • They maintain a public portfolio page focused on cybersecurity companies. (Ten Eleven)

Proof they're active in 2025

  • Ten Eleven announced participation/leadership in notable 2025 rounds on their site, e.g., Hypernative's $40M Series B (June 2025). (Ten Eleven)
  • Their own communications state they've raised $1B+ and made 60+ cybersecurity investments across stages. (Ten Eleven)

What they're great for

  • Founders who want an investor that understands:
    • enterprise security sales cycles
    • platform dynamics (cloud, identity, runtime, appsec)
    • how security categories evolve (and consolidate)

How to pitch Ten Eleven

  • Treat it like a buyer-led business: ICP, security pain, why budgets exist, and your adoption plan
  • Show the wedge + what makes you defensible (data, workflow lock-in, deployment footprint, switching costs)

3) YL Ventures (Cyber-focused; "from seed to scale")

Why they're top-tier: YL is a deeply cyber-centered firm and is consistently visible in industry analysis and ecosystem reporting. Their site positions them clearly as cybersecurity specialists who champion founders "from seed to scale." (YL Ventures)

Proof they're active and influential in 2025

  • YL published its "State of the Cyber Nation" reporting and is cited by major outlets (e.g., Reuters) as a source for cyber market funding trends. (Reuters)
  • Their site highlights being named on TIME's list of top VC firms for 2025 and strong PitchBook rankings—useful as an external credibility signal. (YL Ventures)

What they're great for

  • True cyber-native guidance: category framing, go-to-market sequencing, and the "how buyers buy" nuance
  • Helping early-stage teams avoid common traps (e.g., building to analyst narratives rather than real buyer pull)

How to pitch YL

  • Show a crisp problem statement + proof of urgency (what breaks without you)
  • Demonstrate why your approach wins technically and commercially (security buyers are skeptical by default)

4) Ballistic Ventures (Cyber-only; early-stage + incubation vibe)

Why they're top-tier: Ballistic is one of the most visible cyber-exclusive early-stage firms built by heavyweight operators/investors. Their positioning is explicitly "dedicated exclusively to early-stage funding and incubation…in cybersecurity." (Ballistic Ventures)

Proof they're actively investing

  • Ballistic closed an oversubscribed Fund II of $360M (announced March 2024) and stated it had already invested in 18 companies since launch—strong signal of sustained activity heading into 2025. (Ballistic Ventures)
  • They also appear as participants in notable seed rounds reported by Axios (e.g., AuthMind seed). (Axios)

What they're great for

  • Very early teams (pre-seed/seed) who want:
    • hands-on support
    • deep operator perspective (what actually works in security)
    • a strong network of security leaders

How to pitch Ballistic

  • Show why you're a "category creator," not a feature
  • Bring a demo + threat story: what fails today, why incumbents can't patch it, and why you'll win distribution

5) Forgepoint Capital (Cyber + infrastructure software; early-stage strength)

Why they're top-tier: Forgepoint is a recognized specialist investor in cybersecurity and infrastructure software, with an active portfolio and ongoing market commentary.

What they invest in

  • Forgepoint explicitly says it backs cybersecurity, AI, and infrastructure software companies as an early-stage firm. (Forgepoint Capital)

Proof they're actively deploying in 2025

  • Forgepoint published a "2024 Year in Review" (Jan 2025) describing market dynamics and expectations into 2025—useful signal that they're engaged and active in the space. (Forgepoint Capital)
  • Their June 2025 post on Tadaweb's $20M raise shows recent investment leadership activity. (Forgepoint Capital)
  • Their site shows an active portfolio with recognizable cyber companies (e.g., Huntress) and categories. (Forgepoint Capital)

What they're great for

  • Companies with infrastructure depth (cloud security, identity, security data platforms, security engineering tooling)
  • Founders who benefit from an investor that can connect product strategy to infrastructure realities

How to pitch Forgepoint

  • Bring a clear technical architecture + why it scales
  • Show how your product fits into modern stacks (cloud, identity plane, data plane) and how you'll land-and-expand

3) 5 quick tips to pitch top cybersecurity investors (2025 edition)

  1. Sell urgency, not fear. Show a concrete failure mode: what breaks, how often, how expensive, and who owns the budget.

  2. Prove the buyer path early. Even pre-revenue: design partners, pilots, lighthouse prospects, pipeline quality, security leader references.

  3. Make adoption realistic. Security teams hate friction. Be explicit: deployment model, time-to-value, and how you avoid becoming "another dashboard."

  4. Be crisp about the wedge → platform story. Top cyber investors back "one sharp entry point that expands." Spell out the expansion path (what you sell next and to whom).

  5. Bring receipts for differentiation. In cyber, "AI-powered" is table stakes. Differentiation is data, workflow lock-in, integration depth, detection quality, or cost curves—show something that's hard to copy. Use a professional data room like Peony to organize materials with AI-powered organization and track investor engagement with page-level analytics.

Why professional data rooms matter for cybersecurity fundraising

Cybersecurity startups need to present complex documentation—financial projections, GTM plans, product roadmaps, and operational data—professionally to build investor confidence in a competitive market.

Peony helps cybersecurity startups create investor-ready data rooms with AI-powered organization that sets up in minutes instead of weeks.

Key benefits: page-level analytics show which documents investors review most, enterprise security protects sensitive information, and transparent pricing at $40/user/month—93-99% cheaper than legacy platforms charging $5,000-20,000 per deal.

Conclusion

Raising capital from cybersecurity investors in 2025 requires matching your stage, sector, and execution needs to the right funds. The investors on this list are actively deploying, but they're selective. Bring round math, GTM clarity, and a clean data room—not just vision.

Having a professional data room is table stakes for serious cybersecurity fundraising. Peony helps cybersecurity startups organize investor materials, track engagement, and securely share sensitive financial and operational data at a fraction of legacy platform costs.

Ready to pitch cybersecurity investors? Set up your investor data room with Peony in minutes, not weeks.

Q&A Section

What's the best way to organize investor materials for cybersecurity fundraising?

Peony offers AI-powered document organization that automatically structures financial projections, GTM plans, product roadmaps, and operational data into a professional data room in minutes. Page-level analytics show which documents investors review most, helping you anticipate questions.

How can I track which cybersecurity investors are most engaged with my pitch?

Peony provides page-level analytics showing which documents investors review and how much time they spend on each section. This helps identify serious investors and tailor follow-up conversations with actionable insights.

What's the most cost-effective data room solution for cybersecurity startups raising capital?

Peony offers transparent pricing at $40/user/month—93-99% cheaper than legacy platforms charging $5,000-20,000 per deal. For a 5-person team, Peony costs $200/month vs $3,000-5,000+ for legacy platforms, delivering enterprise features at startup-friendly pricing.

How do I securely share sensitive financial and operational information with cybersecurity investors?

Peony provides enterprise-grade security with identity-bound access, dynamic watermarking, and screenshot protection. With link expiry and instant access revocation, you maintain complete control over sensitive documentation.

What data room features are essential for cybersecurity startups pitching to investors?

Cybersecurity startups need data rooms that handle complex documentation: financial projections, GTM plans, product roadmaps, and operational data. Peony offers AI-powered organization, page-level analytics, custom branding, and comprehensive security. With 10-minute setup vs weeks for legacy platforms, Peony helps cybersecurity startups look professional without breaking the budget.

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