PitchBook has indicated in a new report that the cybersecurity venture capital landscape entered 2026 with notable stability in capital deployment, even as deal volume reached its lowest point in years. According to PitchBook data, total deal value in the first quarter held nearly flat at approximately $5 billion, dipping just 1% from the previous quarter. However, the number of transactions fell to 198—the fewest since 2018—underscoring a structural shift toward selective investing in proven, high-potential platforms rather than broad market participation. PitchBook also mentioned that year-over-year figures reinforce this trend: deal value rose 23% compared to Q1 2025, while transaction count declined by a similar margin. Investors are prioritizing companies with strong revenue traction, clear paths to exit, and defensible differentiation—particularly those leveraging artificial intelligence. A key highlight was the reversal in funding stages. The PitchBook report also stated that early-stage investments surged to $2.1 billion across 60 deals, surpassing late-stage activity ($1.7 billion) for the first time since Q3 2022. This shift does not indicate a broad reopening for seed and Series A companies but rather reflects the ability of AI-native security startups to attract massive early checks. Firms like Tenex.AI, Upwind Security, and Armadin secured rounds exceeding $180 million, with some achieving unicorn valuations from the outset. Traditional late-stage deal counts remained steady at around 70, showing sustained support for more mature players. Sector dynamics varied. Security operations (SecOps) led with $1.8 billion across 59 deals, up 30% sequentially. According to the insights from PitchBook, this segment benefits from its central role in real-time threat detection, response, and AI-powered orchestration, as enterprises consolidate around advanced SIEM and automation platforms. The research report from PitchBook pointed out that identity and access management followed with $779 million, driven by the explosion of machine and AI-agent identities alongside persistent credential-based