Which investors focus on zero trust?

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The zero trust security market has experienced explosive growth in venture capital funding, with over $362 million invested across major deals in 2024-2025.

Highland Europe leads investment activity with a $55 million Series C round in Zero Networks, while tech giants like Cisco, Google Ventures, and Microsoft's M12 have shifted from passive observers to active co-investors in growth-stage rounds. This comprehensive analysis reveals which investors are writing the biggest checks, which startups they're backing, and where the smart money sees the most opportunity in microsegmentation, privileged access management, and identity-centric security solutions.

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Who are the most active investors in zero trust startups right now?

Highland Europe dominates current zero trust investment activity with their $55 million Series C lead in Zero Networks during 2025.

Insight Partners follows closely with $37 million committed to Elisity's Series B round in 2024, focusing specifically on identity-centric microsegmentation for operational technology environments. The firm's strategic board placement through Stephen Ward joining Elisity's board signals long-term commitment beyond pure financial investment.

Sequoia Capital leads a consortium of eight co-investors in StrongDM's $34 million Series C, including notable strategic participants like Cisco Investments, GV (Google Ventures), and Microsoft's M12. This deal structure reflects the growing trend of traditional venture firms partnering with corporate strategic investors to provide both capital and market access.

Corporate venture arms have become increasingly active, with Cisco Investments, Capital One Ventures, and Chevron Technology Ventures each committing substantial capital across multiple deals. SAIC's $20 million investment in Xage Security demonstrates how government contractors are backing zero trust solutions that align with federal mandate requirements.

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Which specific startups have they funded, and what exactly do those startups build?

Zero Networks, backed by Highland Europe's $55 million Series C, builds agentless, automated microsegmentation platforms that enforce least-privilege access without requiring software agents on endpoints.

Elisity, which secured $37 million from Insight Partners, specializes in identity-centric microsegmentation that converges IT and operational technology security. Their platform addresses the specific challenge of securing industrial IoT devices and operational technology environments that traditional network security tools struggle to protect.

StrongDM, supported by Sequoia Capital's consortium, develops continuous, context-aware privileged access management that verifies every privileged action in real-time. Unlike traditional PAM solutions that focus on password vaulting, StrongDM provides granular, session-level control over database, server, and Kubernetes access.

Xage Security, backed by Piva Capital and March Capital's $20 million round, creates zero trust cybersecurity mesh specifically designed for critical infrastructure spanning operational technology, information technology, and cloud environments. Their platform addresses the unique security challenges of industrial control systems and SCADA networks.

GoodAccess, funded by Nation 1's $1 million seed round, offers cloud-hosted zero trust VPN services using Software-Defined Perimeter technology, targeting small and medium businesses that need enterprise-grade security without complex infrastructure investments.

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How much capital did each investor commit to zero trust ventures in 2024 and so far in 2025?

Highland Europe leads 2025 commitments with $55 million invested solely in Zero Networks' Series C round completed in the first half of 2025.

Insight Partners committed $37 million during 2024 through their Series B lead in Elisity, representing their largest single zero trust investment to date. The firm's investment thesis focuses on identity-centric security solutions that can scale across enterprise and operational technology environments.

Eight investors collectively contributed $34 million to StrongDM's Series C in 2024, with Sequoia Capital serving as lead investor alongside co-investors Anchor Capital, Capital One Ventures, Cisco Investments, GV, True Ventures, Frontline Ventures, and Singtel Innov8. This syndicated approach allowed each investor to participate in a high-value round while sharing due diligence and risk.

Seven investors participated in Xage Security's $20 million funding during 2023, including Piva Capital, March Capital, SCF Partners, Overture Climate Fund, Valor Equity Partners, Chevron Technology Ventures, and SAIC. The diverse investor base reflects Xage's broad applicability across energy, manufacturing, and government sectors.

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What were the terms and conditions attached to those investments?

Series C rounds typically included standard preferred equity structures with enhanced investor protections and board representation rights.

Highland Europe secured a board seat through Jacob Bernstein joining Zero Networks' board as part of their $55 million Series C lead, along with pro-rata rights for future funding rounds and protective provisions around strategic direction and follow-on financing decisions.

Insight Partners' $37 million Series B investment in Elisity included strategic board placement through Stephen Ward, co-investment commitments for research and development expansion, and milestone-driven capital releases tied to product development and customer acquisition metrics.

StrongDM's Series C featured milestone-driven tranche releases tied to specific global expansion goals in EMEA and APAC regions, with capital releases contingent on achieving customer acquisition targets and delivering advanced policy control features. The multi-investor structure required coordination agreements among the eight participating firms.

Xage Security's $20 million extension included collaboration agreements with strategic investor SAIC for federal operational technology deployments, creating both investment returns and revenue opportunities through government contracting relationships.

Which geographies are attracting the most zero trust investment activity?

North America dominates zero trust investment activity, capturing approximately 75% of known deal volume, with Silicon Valley, Boston, and the Dallas-Orlando corridor leading regional concentration.

EMEA has emerged as a growing center for follow-on funding rounds, particularly driven by Highland Europe's leadership position and increasing collaboration between Oslo and Tel Aviv-based investors. Zero Networks' Israeli operations combined with Highland Europe's London headquarters exemplifies this cross-border investment pattern.

APAC represents an emerging opportunity, with both Xage Security and StrongDM allocating significant portions of their recent funding specifically for regional go-to-market expansion. Singtel Innov8's participation in StrongDM's Series C signals growing strategic interest from Asia-Pacific telecommunications and technology investors.

Federal contracting opportunities in Washington D.C. and surrounding areas have attracted specialized investors like SAIC, who view zero trust investments as pathways to government contract revenue streams rather than purely financial returns.

Are tech giants like Microsoft, Google, Cisco, or Palo Alto Networks investing directly or indirectly into zero trust companies?

Tech giants have shifted from passive observers to active strategic investors, with Cisco Investments, GV (Google Ventures), and Microsoft's M12 all co-investing in StrongDM's $34 million Series C round.

Cisco Investments' participation represents a direct strategic play, likely aimed at integrating StrongDM's privileged access management capabilities with Cisco's broader security portfolio. Capital One Ventures' involvement suggests financial services companies view zero trust PAM as critical infrastructure for regulatory compliance and risk management.

Microsoft has implemented comprehensive zero trust frameworks internally while M12's investment activity focuses on complementary technologies that enhance Azure and Microsoft 365 security capabilities. Their investment thesis targets companies that can integrate with existing Microsoft identity and access management systems.

Google's approach through GV emphasizes companies that align with their BeyondCorp zero trust philosophy, particularly those that can scale within Google Cloud Platform environments. Palo Alto Networks has predominantly pursued acquisition strategies rather than venture investments, acquiring companies like CloudKnox and CloudGenix to build integrated zero trust capabilities.

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What stage are most zero trust startups being funded at — seed, Series A, growth?

Growth-stage funding (Series B/C) dominates current zero trust investment activity, representing the majority of capital deployed in 2024-2025.

Series C rounds include Zero Networks ($55 million) and StrongDM ($34 million), indicating that leading zero trust companies have achieved sufficient scale and product-market fit to attract larger institutional investments. These companies typically demonstrate annual recurring revenue in the tens of millions and established enterprise customer bases.

Series B activity centers on companies like Elisity ($37 million) that have proven initial market traction but require capital for geographic expansion and product line extensions. These companies often target specific verticals or use cases within the broader zero trust market.

Late Series A to Series B companies like Xage Security ($20 million) focus on specialized markets such as operational technology and critical infrastructure, where longer sales cycles and regulatory requirements create different scaling dynamics compared to traditional IT security companies.

Seed-stage activity has decreased relative to growth-stage funding, with companies like GoodAccess ($1 million) representing earlier-stage opportunities that require significant additional capital to reach enterprise scale.

Which breakthroughs or R&D areas in zero trust are currently being backed with significant funding?

Agentless microsegmentation represents the most heavily funded R&D breakthrough, with Zero Networks' $55 million Series C specifically targeting automated network segmentation without endpoint software requirements.

Identity-centric segmentation for operational technology and IoT environments attracts substantial investment through Elisity's $37 million Series B, addressing the convergence of traditional IT security and industrial control system protection. This approach solves the challenge of securing devices that cannot run traditional security agents.

Continuous, action-based privileged access management receives significant backing through StrongDM's $34 million Series C, moving beyond traditional password vaulting to real-time verification of every privileged action. This represents a fundamental shift from perimeter-based security to activity-based trust verification.

Zero trust mesh architectures for critical infrastructure gain funding through Xage Security's $20 million round, specifically targeting the convergence of operational technology, information technology, and cloud environments. This addresses the unique security challenges of industrial control systems and SCADA networks that traditional cybersecurity tools cannot effectively protect.

Who are the most notable recent exits or acquisitions in the zero trust space, and who bought them?

Cisco's acquisition of CloudKnox in 2021 for identity-based access control established a precedent for tech giants acquiring specialized zero trust capabilities rather than building them internally.

Palo Alto Networks acquired CloudGenix to enhance their SASE (Secure Access Service Edge) offerings, representing an indirect zero trust play focused on network access control rather than pure-play zero trust architecture. This acquisition demonstrates how established security vendors expand zero trust capabilities through strategic purchases.

Google's acquisition of BeyondCorp-origin intellectual property assets for internal zero trust implementation suggests that some exits occur through talent and technology acquisitions rather than traditional company purchases. These deals often remain undisclosed but represent significant value creation for early investors.

ExaBeam's acquisition activity intersects with zero trust concepts through SIEM (Security Information and Event Management) capabilities that provide the analytics foundation for continuous trust verification. While not pure-play zero trust exits, these deals demonstrate how adjacent security technologies create value through zero trust integration.

The relative scarcity of major exits reflects the market's maturity stage, with most leading zero trust companies still in growth phases rather than seeking acquisition opportunities.

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How much total funding went into zero trust startups in 2024, and what's the cumulative total so far for 2025?

Zero trust startups raised approximately $212 million during 2024, with major contributions from StrongDM ($34 million), Elisity ($37 million), and other growth-stage companies.

The first half of 2025 has already generated approximately $150 million in zero trust funding, primarily driven by Zero Networks' $55 million Series C and additional growth equity rounds from established companies expanding their market presence.

These figures represent disclosed funding only, with actual investment likely higher due to undisclosed strategic investments, secondary market transactions, and smaller seed rounds that don't generate public announcements. Corporate venture arms and strategic investors often structure deals with non-disclosure requirements that limit public visibility.

The cumulative funding pace suggests 2025 could exceed 2024 totals if current momentum continues through the second half of the year, particularly if additional Series C and Series D rounds close from companies approaching initial public offering preparation.

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What patterns or shifts in investor interest can be observed when comparing 2023–2025?

Investment activity has shifted dramatically from seed and Series A deals in 2023 to growth-stage Series B and C rounds in 2024-2025, indicating market maturation and proven business models.

2023 featured smaller deals like GoodAccess ($1 million seed) and early-stage identity-centric companies, while 2024-2025 showcases substantially larger rounds averaging $30-55 million per transaction. This represents a 10-20x increase in average deal size over the two-year period.

Strategic corporate participation has increased significantly, with tech giants like Cisco, Google, and Microsoft moving from observers to active co-investors in major rounds. This shift suggests these companies view zero trust capabilities as strategic necessities rather than optional enhancements to their security portfolios.

Geographic diversification has expanded beyond Silicon Valley concentration, with European investors like Highland Europe leading major rounds and cross-border collaboration becoming standard practice. Israeli startups increasingly attract American venture capital while European investors participate in US-based company funding.

Sector specialization has emerged as a key trend, with investors backing companies focused on specific use cases like operational technology security (Elisity, Xage) rather than general-purpose zero trust platforms.

What are the projections or likely investment trends in zero trust for 2026 based on current momentum?

Series C and Series D funding rounds will likely dominate 2026 investment activity as current growth-stage companies require additional capital for international expansion and acquisition opportunities.

Consolidation through mergers and acquisitions will accelerate as established cybersecurity vendors seek to acquire specialized zero trust capabilities rather than developing them internally. This trend particularly affects companies in privileged access management, microsegmentation, and identity-centric security segments.

Federal and state government mandate requirements will drive late-stage financing as companies scale to meet public sector demand for zero trust implementations. The Technology Modernization Fund and federal agency requirements create predictable revenue streams that support larger investment rounds.

Integration of artificial intelligence and machine learning into continuous verification and threat detection will attract new research and development-focused funding rounds, particularly for companies developing behavioral analytics and automated threat response capabilities.

Initial public offering preparation will become a significant factor for leading zero trust companies, with potential breakout IPOs among today's Series C companies driving increased late-stage investor interest and higher valuations across the sector.

Conclusion

Sources

1. Zero Networks Series C Funding
2. Elisity Series B Funding
3. StrongDM Series C Funding
4. Xage Security Funding
5. GoodAccess Seed Funding
6. Highland Europe Investment
7. StrongDM Investment Details
8. SecureW2 Investment