April Normalizes After Record Q1
Momentum Cyber’s April 2026 Cybersecurity Market Review reflects a normalization in activity following a record-breaking Q1, with steady deal flow but fewer large-scale transactions and more selective capital deployment. Despite the moderation, April featured several notable and strategically significant deals, particularly across Cyber Services and AI Security, highlighting continued buyer conviction and targeted consolidation across key segments.
Executive Summary
April 2026 highlighted a more selective but strategically active market, where conviction in high-value assets continues to drive dealmaking. Cyera’s acquisition of Ryft—an AI-native startup under two years old—reinforces the urgency to secure next-generation capabilities early, while continued activity from non-traditional strategics like Airbus underscores the expanding strategic importance of cybersecurity across industries. The market is increasingly defined by targeted, high-conviction bets rather than broad-based volume.
Key Takeaways
Key Takeaways
M&A Activity Surges
- 37 M&A transactions in February 2026, representing the 4th highest monthly deal count ever recorded
- $1.0B in disclosed M&A value from 8 deals, up 66% year-over-year
- 16% increase in deal count compared to February 2025
Financing Market Stabilizes
- 61 financing transactions completed, deploying $563M in total capital
- $12M median deal size, reflecting balanced early- and mid-stage investment activity
- Risk & Compliance led activity with 18 deals, capturing 48% of capital deployed ($271M)
AI Security M&A Accelerates
- 4 AI Security M&A deals in February alone, 40% of all 2025 AI Security M&A activity
- Segment on track for 300%+ increase in M&A transactions in 2026
- Strategic buyers acquiring AI-native platforms to secure autonomous workloads and agent governance
Key Report Takeaways
Key Report Takeaways
M&A Activity Surges
- 37 M&A transactions in February 2026, representing the 4th highest monthly deal count ever recorded
- $1.0B in disclosed M&A value from 8 deals, up 66% year-over-year
- 16% increase in deal count compared to February 2025
Financing Market Stabilizes
- 61 financing transactions completed, deploying $563M in total capital
- $12M median deal size, reflecting balanced early- and mid-stage investment activity
- Risk & Compliance led activity with 18 deals, capturing 48% of capital deployed ($271M)
AI Security M&A Accelerates
- 4 AI Security M&A deals in February alone, 40% of all 2025 AI Security M&A activity
- Segment on track for 300%+ increase in M&A transactions in 2026
- Strategic buyers acquiring AI-native platforms to secure autonomous workloads and agent governance
Key Report Takeaways.
Key Report Takeaways.
M&A transactions in April 2026 up 38% year-over-year
40
Cyber Services M&A deals, 8 more than the next closest Sector (Risk & Compliance, with 9)
17
in disclosed M&A value
$
857
M
financing transactions completed in April 2026
51
in total capital deployed in April 2026
$
347
M
median deal size, reflecting balanced early- and mid-stage investment activity
$
9
M
of all financing capital deployed was captured by AI Security companies across 13 deals
39
%
Al Security M&A deals in April 2026 alone
5
Al Security M&A is on pace to increase 400%+ in 2026
400
%+
Download the Full Report
The complete Q1 2026 Cybersecurity Monthly Market Review includes:
- Detailed M&A and financing transaction breakdowns
- Sector-by-sector analysis across 12 cybersecurity categories
- Public market performance and valuation metrics
- Strategic insights on AI Security, Risk & Compliance, and platform consolidation
- Complete deal lists with disclosed valuations and strategic rationale
- Forward-looking indicators for Q1 2026 and beyond
About Momentum Cyber
Momentum Cyber is the premier trusted advisor to the global cybersecurity industry, providing M&A advisory, capital raising, and strategic research services. With 68 cybersecurity transactions completed, $25B+ in cybersecurity deal value, and unparalleled industry relationships, Momentum Cyber delivers mission-critical advice to leading founders, CEOs, and decision-makers.
By The Numbers
M&A Highlights
Deal Volume & Value
- 37 total M&A transactions
- $1.0B in disclosed deal value
- 8 disclosed transactions
- $125M average disclosed deal value
Top Acquirers
- Check Point Software made 3 acquisitions (Cyata, Cyclops Security, Rotate) worth combined $150M
- Palo Alto Networks acquired KOI for $400M to secure agentic endpoint protection
- Varonis acquired AllTrue.ai for $126M to extend AI trust and governance capabilities
Most Active Sectors
- Security Services: 13 deals
- Risk & Compliance: 4 deals
- AI Security: 4 deals
- Data Security: 4 deals
- Digital Channel Security: 3 deals
Financing Highlights
Capital Deployment
- $563M total capital raised
- 61 financing transactions
- $12M median deal size
- 15% below 13-month median count
Stage Distribution
- Early Stage & Series A: 40 deals, $266M deployed (median: $7.2M)
- Series B: 3 deals, $65M deployed (median: $25.0M)
- Series C+: 14 deals, $207M deployed (median: $50.0M)
Top Financed Companies
- UpGuard: $75M Series C (Springcoast Partners)
- Gambit Security: $61M Series A (Kleiner Perkins)
- GitGuardian: $50M Series C (Insight Partners)
- Astelia: $35M Series A (Index Ventures)
- Orion Security: $32M Series A (Norwest Venture Partners)
Most Active Sectors by Deal Count
- Risk & Compliance: 18 deals, $271M
- Identity & Access Management: 8 deals, $102M
- AI Security: 7 deals, $57M
- Security Operations: 6 deals, $50M
- Digital Channel Security: 5 deals, $25M
Strategic Market Insights
AI Security Consolidation Arrives
February 2026 marks an inflection point for AI Security M&A. With 4 transactions in a single month, the segment is experiencing the buying window that operators and investors have anticipated since enterprise AI adoption accelerated in 2024-2025.
Key AI Security Transactions
- Palo Alto Networks acquired KOI ($400M) for agentic endpoint security
- Varonis acquired AllTrue.ai ($126M) for AI trust and governance
- Check Point acquired Cyata for AI agent discovery and control
- Proofpoint acquired Acuvity for unified protection across humans, data, and AI agents
The market is recognizing that AI security is no longer speculative. Enterprises are deploying autonomous agents, and acquirers who move early are securing critical capabilities at reasonable valuations before premium pricing takes hold.
Capital Concentrates at Scale
February financing activity reinforced the flight-to-quality dynamic. Five deals accounted for 45% of total capital deployed, while median deal sizes compressed to $12M as early-stage volume balanced late-stage concentration.
$100M+ Financing Activity Accelerates
- Q1 2026 is projected to match 2025's quarterly average of 6 deals worth $1.4B in $100M+ rounds
- Median investment size in $100M+ deals increased to $200M (up from $159M in 2024)
- Median post-money valuation for $100M+ deals reached $1.85B
This bifurcation reflects investor conviction that scaled platforms with demonstrated efficiency can command premium capital, while earlier-stage companies face more disciplined funding environments.
Record M&A Momentum Continues
February’s 37 M&A transactions extend the elevated deal velocity observed throughout 2025 and into early 2026. The first two months of 2026 are on pace for 489 total M&A deals, which would represent 22%+ growth over 2025’s record 400 transactions.
Historical Context
- February 2026: 37 deals (4th highest month ever)
- January 2026: 38 deals (3rd highest month ever)
- Only June 2025 (42 deals) and May 2025 (39 deals) recorded higher monthly totals
Strategic buyers are driving this acceleration. With stronger enterprise budgets, platform consolidation imperatives, and the urgency to own AI-enabled security infrastructure, acquirers are moving decisively on targets that extend their capabilities or fill critical gaps.
About
Momentum Cyber is the premier trusted advisor to the global cybersecurity industry, providing M&A advisory, capital raising, and strategic research services. With 68 cybersecurity transactions completed, $25B+ in cybersecurity deal value, and unparalleled industry relationships, Momentum Cyber delivers mission-critical advice to leading founders, CEOs, and decision-makers.
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