Q4 2025 PitchBook Analyst Note: AI Propels Next Phase of Cybersecurity Investment - PitchBook

AI cyber reaches 50% of global cyber VC deal activity amid rising AI-driven attacks AI-driven threats are reshaping the cybersecurity landscape, and private markets are responding just as quickly. Attackers now use agentic systems, polymorphic malware, deepfake-enabled social engineering, and AI-as-a-service tools to automate reconnaissance and intrusions at machine speed. This shift is accelerating demand for AI-native platforms that can detect and respond in real time across cloud, identity, and network environments. The trend is visible in the data. In 2025, AI cyber companies accounted for 50.5% of all global cybersecurity VC deals, and median deal sizes, step-ups, fundraising cadence, and MOIC all outperformed non-AI peers. This note highlights how geopolitical pressure, expanding cloud footprints, and emerging regulations are turning AI security from a reactive cost center into strategic infrastructure. Governments in the US, EU, and Asia-Pacific region are scaling cyber budgets; enterprises are prioritizing model-level protection and secure software pipelines; and startups are driving new approaches in autonomous detection, offensive security, and data integrity. As AI becomes both the source of new risks and the foundation of modern defense, the market is coalescing around companies that secure models, safeguard data pipelines, and deliver continuous AI-driven responses. Table of contents Key takeaways 1 Executive summary 2 Market layout: Cybersecurity in transition 2 Emerging threats in the AI era 5 The AI cyber premium 10 Public sector and geopolitical catalysts 12 Industry insights 13 Outlook and strategic takeaways 17