Notable Capital Unveils Rising in Cyber 2025

Names Top 30 Startups Shaping the Future of Cybersecurity and New Report Maps Industry Evolution

NEW YORK, June 4, 2025 /PRNewswire/ -- Notable Capital today announced Rising in Cyber 2025, an annual list spotlighting 30 of the most promising private cybersecurity startups. This list is curated in partnership with a distinguished group of Chief Information Security Officers (CISOs) and senior cybersecurity leaders. The firm also released the Rising in Cyber 2025 Report, created in collaboration with Morgan Stanley. The report blends exclusive CISO survey data with market analysis and maps how the $625 billion cybersecurity industry is evolving, driven by AI adoption and strategic M&A activity.

Rising in Cyber aims to reflect the technologies that security teams are actually adopting—and the companies building products that solve real-world problems. This year's honorees were drawn from a pool of 275 venture-backed startups, nominated by leading cybersecurity investors and selected through voting by nearly 150 CISOs and cybersecurity executives.

"We launched Rising in Cyber to surface the companies that matter most—not to investors, but to the people tasked with defending the world's most complex environments," said Oren Yunger, Managing Partner at Notable Capital. "These startups aren't just innovative—they're operationally relevant. They reflect where security budgets are going and where the future is headed."

Rising in Cyber 2025 Report

The cybersecurity industry is undergoing a seismic transformation driven by agentic AI, exploding identity risks, and application-layer threats. As enterprise demand shifts and strategic M&A continues to focus on innovation, CISOs are moving from reactive defense to proactive strategies—and backing a new generation of startups solving real-world problems. The Rising in Cyber 2025 Report was created in collaboration with Morgan Stanley and combines CISO survey data and market activity to map where capital, innovation, and operational focus are converging, as reflected by this year's honorees.

Market Growth: Strategic M&A is Reshaping the Cybersecurity Landscape

• The market cap of publicly traded cybersecurity companies now exceeds $625 billion and has experienced substantial growth over the past decade, with a compound annual growth rate (CAGR) of 20%—outpacing the S&P 500's CAGR of 11%, according to data provided by Morgan Stanley.
• An active M&A landscape has reshaped the sector, as strategic acquirers seek innovation through the acquisition of startups offering specialized, cutting-edge solutions. Recent transactions such as Palo Alto Networks' acquisition of Protect AI (2025), Wiz's acquisition of Gem Security (2024), and Palo Alto Networks' acquisition of Talon Cyber Security (2023) highlight continued demand for specialized cybersecurity solutions and liquidity opportunities at strong multiples.

CISO Survey: CISOs Signal Cautious Openness to AI as Reliability Remains a Barrier

Cybersecurity leaders are under increasing pressure, according to the Notable Capital Rising in Cyber CISO Survey, which polled nearly 150 practicing CISOs and cybersecurity executives about the current operating environment.

• While AI-powered threats are top of mind, they are not yet viewed as existential: 48% of respondents listed AI-powered threats as a "medium priority" for their teams, 28% as a "high priority," and only 11% expressed that they were "very concerned" about AI-powered threats.
• CISOs also indicated openness to adopting new solutions, but concerns about reliability remain a key barrier. When asked about the biggest obstacle to adopting AI agents, only 5% cited internal resistance, while 32% pointed to "uncertainty around agent behavior or reliability."

Trends Shaping Cybersecurity: Proactive Defense and Identity Overhaul Top 2025 Cybersecurity Priorities

The report outlines four major trends shaping the future of cybersecurity in 2025 and beyond:

• Pivoting from reactive defenses to proactive threat prevention
• Redefining Security Operations Center (SOC) roles in the age of AI
• Securing application layer vulnerabilities
• Managing identity and access controls amid a surge in non-human identities

These trends reflect how cybersecurity strategies are evolving in response to both technological innovation and a changing threat environment.

To download the Rising in Cyber 2025 Report, visit www.risingincyber.com.

Rising in Cyber 2025 Honorees

This year's honorees have collectively raised more than $7.8 billion according to PitchBook data as of May 2025, and span critical categories including identity, security operations, and application defense. In recognition of their impact, Notable Capital is collaborating with the New York Stock Exchange to host a private event celebrating the 2025 honorees.

1Password

Abnormal

Aembit

Armor Code

Astrix Security

Axonius

BreachRX

Chainguard

Cribl

Cyera

Descope*

Drata*

DropZone AI

Endor Labs

Gomboc

Grip Security

Horizon3.ai

Island

Lucidum*

Noma Security

Nudge Security

Opal Security

Orca Security*

Pangea

runZero

Sublime Security

Tines

Token Security*

Tonic.ai*

Wing Security*

* Notable Capital portfolio company

About Rising in Cyber

Rising in Cyber is an annual list and research initiative recognizing the most innovative startups in cybersecurity. Honorees are selected through a two-part process that includes nominations from top venture capital firms and selection through voting by nearly 150 practicing CISOs and cybersecurity executives. For more information, visit www.risingincyber.com. 

About Notable Capital

Notable Capital is named for the founders we invest with, the ideas they pursue, the causes they champion, and the remarkable companies they build. Notable is a U.S.-based venture capital firm focused on early-to-growth stage companies in cloud infrastructure, cybersecurity, fintech, commerce, and AI across the U.S., Israel, Europe, and select go-global opportunities. Notable Capital portfolio companies include Affirm, Airbnb, Anthropic, Brightwheel, Drata, Fal, Handshake, HashiCorp, Ibotta, Monte Carlo, Neon, Orca Security, Quince, Slack, Stori, Vercel, and more.

Notable Capital is a longtime investor in the global cybersecurity sector. Its investments include Bitsight, Descope, Drata, Gem Security (acquired by Wiz), HashiCorp ($HCP, acquired by IBM), Nozomi Networks, Orca Security, Torq, Tonic.ai, Vdoo (acquired by JFrog), and more. More information can be found at www.notablecap.com and @notablecap.

SOURCE Notable Capital Management, L.L.C.