Which zero trust companies raised money?

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Zero trust security companies captured over $215 million in disclosed funding across 2024 and the first half of 2025, signaling massive investor confidence in network microsegmentation and identity-centric security controls.

From $4 million seed rounds to $55 million Series C financings, the funding landscape reveals which technologies investors believe will define the next generation of cybersecurity infrastructure. And if you need to understand this market in 30 minutes with the latest information, you can download our quick market pitch.

What are the most prominent zero trust companies that raised money in 2024 and 2025?

Zero Networks leads the pack with the largest round at $55 million Series C in June 2025, focusing on automated network microsegmentation that prevents lateral threat movement without requiring agents on endpoints.

Portnox secured $37.5 million in Series B funding in April 2025 to replace traditional network access control systems with cloud-native unified access management. Elisity raised $37 million in Series B during April 2024, developing AI-powered identity-based microsegmentation that automatically adjusts network policies based on user behavior and risk scoring.

TXOne Networks stands out in the operational technology space with $51 million in Series B extension funding in May 2024, specifically targeting manufacturing, energy, and critical infrastructure with zero trust principles applied to industrial control systems. Hypori raised $12 million in Series B extension in January 2025 for their zero trust BYOD platform that creates secure virtual mobile workspaces without storing data on devices.

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NetBird represents the open-source movement with €4 million in seed funding in December 2024, democratizing zero trust network overlays through community-driven development. Niobium secured $5.5 million in seed funding for hardware acceleration of fully homomorphic encryption, enabling data processing while maintaining complete privacy.

Which investors backed these companies and what are their investment patterns?

Highland Europe emerges as the most active zero trust investor, leading Zero Networks' $55 million Series C and maintaining a portfolio that includes cybersecurity leaders like Snyk and UiPath.

Insight Partners demonstrates deep cybersecurity expertise through their backing of Elisity, leveraging their track record with SentinelOne and WalkMe to identify category-defining security platforms. Updata Partners focuses specifically on B2B software and cloud-native security solutions, making Portnox a strategic fit for their resilient, scalable technology thesis.

UBS AG and AE Industrial Partners represent strategic investors targeting defense and industrial verticals, bringing sector expertise in national security applications through their Hypori investment. Fusion Fund specializes in frontier-tech hardware and emerging computing paradigms, making them the natural choice for Niobium's hardware encryption acceleration technology.

European investors InReach Ventures and Nauta Capital focus on early-stage deep tech and open-source network innovation, backing NetBird's community-driven approach to zero trust networking. TCV (Technology Crossover) maintains their growth equity focus on category-defining tech leaders through their Elisity investment, leveraging their experience with DataStax and Splunk.

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How much money did each company raise and in which funding stages?

Series C rounds dominated the largest fundraising amounts, with Zero Networks setting the benchmark at $55 million in June 2025 after demonstrating 300% revenue growth and tripling their customer base since their Series B.

What is the total zero trust sector funding for 2024 and 2025?

The zero trust sector captured $215.5 million across selected leading companies in 2024 and the first half of 2025, with funding split almost evenly between the two periods.

2024 funding totaled approximately $111 million across five major deals: Elisity ($37M), TXOne Networks ($51M), Niobium ($5.5M), NetBird ($4.3M), and Pomerium ($13.75M). The first half of 2025 already generated $104.5 million through three significant rounds: Zero Networks ($55M), Portnox ($37.5M), and Hypori ($12M).

This funding velocity suggests 2025 could exceed $200 million in total zero trust investments if the current pace continues through the second half of the year. The concentration in larger Series B and Series C rounds indicates the sector is maturing beyond early-stage experimentation into proven, scalable business models.

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Where are these zero trust companies geographically concentrated?

United States dominates zero trust funding geography, hosting seven of the eight major funded companies across diverse tech hubs from Florida to California.

Texas emerges as a surprising zero trust center with both Portnox (Austin) and TXOne Networks (Irving) securing major rounds, potentially driven by the state's growing cybersecurity ecosystem and favorable business climate. California maintains its expected presence with Elisity (San Jose) and Pomerium (San Francisco) representing the traditional Silicon Valley innovation hub.

Florida appears on the map through Zero Networks' Orlando headquarters, though the company maintains dual operations in Tel Aviv, Israel, reflecting the global nature of cybersecurity talent. Virginia's Hypori (Reston) benefits from proximity to defense contractors and government agencies that form their core customer base.

Europe contributes through NetBird's Berlin base, representing the continent's growing open-source security innovation. The geographic concentration in North America reflects both the maturity of the venture capital ecosystem and the concentration of enterprise customers driving demand for zero trust solutions.

Which startup received the highest funding and why?

Zero Networks captured the largest zero trust funding round at $55 million Series C in June 2025, driven by their automated agentless approach to network microsegmentation that addresses lateral threat movement without requiring endpoint software installation.

The company's 300% revenue growth since their Series B round and tripling of their customer base demonstrates strong product-market fit in enterprise environments where traditional segmentation approaches create operational complexity. Their agentless architecture eliminates the deployment and maintenance challenges that plague agent-based security solutions.

Highland Europe led the round based on Zero Networks' ability to stop advanced persistent threats that evade perimeter defenses, a capability that proved valuable during recent high-profile breaches affecting major enterprises. The platform's automated policy generation and real-time threat response capabilities position it as essential infrastructure rather than optional security tooling.

Zero Networks' dual headquarters in Orlando and Tel Aviv provide access to both US enterprise customers and Israeli cybersecurity expertise, creating a competitive advantage in developing cutting-edge threat detection algorithms while maintaining strong customer relationships in the world's largest cybersecurity market.

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What core technologies are attracting the most investment?

Network microsegmentation dominates zero trust investment, capturing the three largest funding rounds through Zero Networks ($55M), Elisity ($37M), and TXOne Networks ($51M) with their specialized approaches to preventing lateral threat movement.

Identity verification and zero trust network access (ZTNA) represents the second major investment category, with Portnox ($37.5M) and Pomerium ($13.75M) developing cloud-native access controls that replace traditional VPNs and network access control systems. These platforms enforce least-privilege access policies based on continuous identity verification rather than network location.

Hardware acceleration for privacy-preserving computation emerges as a frontier investment area through Niobium's $5.5M seed round, targeting fully homomorphic encryption that enables data processing while maintaining complete confidentiality. This technology addresses zero trust requirements for data that remains encrypted even during computation.

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Open-source zero trust infrastructure gains traction through NetBird's €4M funding, democratizing enterprise-grade network security through community-driven development and reducing the cost barriers that prevent smaller organizations from implementing zero trust architectures.

Which large tech companies are investing in zero trust startups?

Cisco leads large tech company investment activity through their acquisitions of BastionZero for agentless identity brokering and Robust Intelligence for AI security, embedding zero trust capabilities directly into their network infrastructure portfolio.

Leonardo, the European defense giant, took a 24.55% stake in SSH Communications Security to build a "Made in Europe" zero trust ecosystem, driven by regulatory requirements for sovereign cybersecurity solutions in critical infrastructure and government applications. This investment reflects growing European concerns about technology dependency and supply chain security.

NVIDIA partnered strategically with Illumio to enforce microsegmentation at the data processing unit (DPU) and hardware level, targeting operational technology environments and data centers where traditional software-based segmentation cannot provide sufficient performance or security guarantees.

Microsoft continues integrating zero trust capabilities through their Entra and Defender suites rather than acquiring standalone companies, focusing on identity governance and microsegmentation that leverages their existing enterprise customer relationships. Cloud providers AWS, Google Cloud, and Azure support zero trust startups through credits and startup programs, including Cloudflare One credits that reduce customer acquisition costs for emerging companies.

Are zero trust companies being acquired by major cybersecurity players?

Acquisition activity remains limited as most funded zero trust companies focus on building independent platforms rather than seeking strategic exits, though several notable transactions signal growing corporate interest in the space.

Cisco's acquisition of BastionZero demonstrates how established networking companies are purchasing zero trust capabilities to embed in their existing infrastructure products, creating integrated solutions that eliminate the complexity of managing multiple security vendors. Their purchase of Robust Intelligence adds AI-powered security analysis that enhances zero trust decision-making through behavioral analytics.

The Leonardo investment in SSH Communications Security represents a different model where established defense contractors take strategic stakes rather than full acquisitions, maintaining European ownership while providing market access and customer relationships in government and critical infrastructure verticals.

Most funded zero trust companies appear focused on building standalone platforms that can achieve significant scale before considering strategic exits, particularly given the strong investor appetite and growing market demand that support continued independent growth rather than defensive acquisitions by incumbent vendors.

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What valuation trends are emerging in zero trust deals?

Zero trust valuations are experiencing significant uplift, with late-stage investors paying premium multiples exceeding 5x annual recurring revenue for proven microsegmentation and identity platforms that demonstrate strong enterprise adoption.

Round sizes are scaling rapidly from $5-15 million seed rounds in 2024 to $37-55 million Series B and C rounds in 2025, indicating both market maturation and investor confidence in the sector's growth potential. This progression suggests companies are achieving the revenue milestones and customer adoption metrics required to justify larger institutional investments.

Extended Series B structures have become common, with companies like Hypori and TXOne Networks choosing "extension" rounds to bring in strategic investors without resetting their valuation benchmarks. This approach allows companies to add value-added investors while maintaining momentum toward larger Series C rounds.

Valuation premiums appear justified by the recurring revenue models and high customer retention rates typical in zero trust platforms, where switching costs are high once organizations integrate these security controls into their core infrastructure and business processes.

What customer segments are these funded companies targeting?

Large enterprises and Fortune 500 companies represent the primary target market for the highest-funded zero trust companies, with Zero Networks and Elisity focusing on organizations that require sophisticated microsegmentation across complex network environments.

Operational technology and critical infrastructure emerge as a specialized high-value segment through TXOne Networks' focus on manufacturing, energy, and utilities where traditional IT security approaches cannot address the unique requirements of industrial control systems and SCADA networks.

Government and defense markets attract significant investment through Hypori's secure BYOD platform and the Leonardo-SSH Communications partnership, driven by stringent security requirements and substantial contract values in these verticals. These customers often require specialized compliance certifications and sovereign technology solutions.

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Small and medium enterprises gain access to enterprise-grade zero trust capabilities through cloud-native solutions like Portnox and open-source platforms like NetBird, which reduce the complexity and cost barriers that previously limited zero trust adoption to large organizations with dedicated security teams.

What are the investment and innovation projections for 2026?

Zero trust investment is projected to accelerate significantly in 2026, with the global market expected to exceed $50 billion by end-2025 and approach $200 billion by 2035, representing a compound annual growth rate of approximately 16.6%.

AI-driven policy orchestration and continuous verification will attract substantial funding as companies develop automated systems that can analyze user behavior, device posture, and network traffic to make real-time access decisions without human intervention. Hardware-enforced segmentation represents another emerging investment area as organizations seek to move security controls closer to the silicon level.

Identity management for AI agents and autonomous systems will create new funding opportunities as organizations deploy artificial intelligence tools that require their own identity verification and access controls within zero trust frameworks. Homomorphic encryption acceleration will gain investor attention as privacy regulations drive demand for computation that maintains data confidentiality.

Merger and acquisition activity will intensify as large incumbents like Cisco, Palo Alto Networks, and Microsoft accelerate strategic acquisitions to broaden their zero trust portfolios and eliminate competitive threats from innovative startups that could disrupt their market positions.

Conclusion

Sources

1. Highland Europe - Zero Networks Series C
2. CIO Influence - Portnox Series B
3. Business Wire - Hypori Series B Extension
4. Yahoo Finance - Elisity Series B
5. TXOne Networks - Series B Extension
6. Security Week - Niobium Seed Funding
7. EU Startups - NetBird Seed Funding
8. Grand View Research - Zero Trust Market Report
9. TS2 Tech - Zero Trust Developments