Top 9 Venture Capital Firms Investing in Security Startups

For founders in the Security space, finding the right investor is about more than just capital. It’s about partnering with a firm that understands the unique technical and market challenges of the cybersecurity and defense tech industries. Knowing which investors are active in your field is a critical first step when preparing to fundraise.

To help you identify the right partners, our team at Rho has curated this overview of top security venture capital firms. This guide is designed to give you a quick summary of the key players, from early-stage to growth investors, so you can focus your efforts effectively.

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Which VC Firms in Security Are Right for Your Stage?

Whether your company is in its early days or preparing for an exit, knowing which investors to approach is key. Below is a quick overview of venture capital firms that invest in the security space, organized by stage.

Pre-seed and Seed VC Firms in Security

Pre-seed and seed funding is for founders in the earliest phases, typically for developing a minimum viable product and finding initial market fit. For founders building AI-focused security startups, investors like Glasswing Ventures are a strong fit, while firms such as Dreamit also focus on this initial stage.

Early Stage VC Firms in Security

Early-stage funding, which includes Series A and B rounds, helps startups with proven traction scale their operations and accelerate growth. Among the many early-stage venture capital firms, corporate VCs like Lockheed Martin Ventures focus on defense and deep tech, while traditional firms like Ascent and Glasswing Ventures are also active investors in the security space.

Late Stage VC Firms in Security

Late-stage capital is for mature companies preparing for an exit, such as an acquisition or initial public offering (IPO). Private equity and venture capital firms like J.P. Morgan and East Los Capital are examples of investors that provide this type of growth funding.

It's also worth noting that some VC firms invest across multiple funding stages.

To help you find the right match, here is a closer look at the top VC firms investing in the security sector. We've outlined their investment stages, geographic focus, and what makes each a strong potential partner.

1. Glasswing Ventures

Based in Boston, Glasswing Ventures invests in early-stage startups that apply artificial intelligence and frontier technology to enterprise and security markets. The firm supports founders from the initial seed stage through subsequent venture rounds.

Glasswing has a clear focus on technically deep products, with portfolio companies like Allure Security, which uses AI to stop brand impersonation, and Black Kite, a third-party cyber-risk platform. Their investment in Zylotech, a customer data platform acquired by Terminus, also highlights a history of successful exits.

This firm is a strong potential partner if you are a founder building an AI-native security or enterprise software company. They are a good fit for teams seeking capital and deep technical expertise at the seed or early stages.

• Investment stages: Seed and early-stage venture
• Industries of focus: Artificial Intelligence (AI), Security, Enterprise Software
• Geographical presence: Boston, MA
• Founded: 2016
• Notable portfolio companies: Allure Security, Black Kite, ChaosSearch
• Portfolio size: 71 investments

You can refer to their website here.

2. LRVHealth

LRVHealth is a venture capital firm that has been investing exclusively in healthcare since 2000. Based in Boston, their team is composed of experienced healthcare investors, operators, and advisors, giving them an "inside healthcare" perspective.

The firm invests across seed, early, and late stages, showing a commitment to supporting companies throughout their lifecycle. Their portfolio highlights a focus on healthcare technology, with successful exits including the IPO of patient-intake platform Phreesia and the acquisition of Current Health by Best Buy.

LRVHealth is a strong match for founders building companies at the intersection of healthcare and technology, including security. They are particularly well-suited for teams seeking a partner with deep operational expertise and a network within the healthcare industry.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Health Care, Security, Enterprise, Medical Device
• Geographical presence: Boston, MA
• Founded: 2000
• Notable portfolio companies: Phreesia, Current Health, GetWellNetwork
• Portfolio size: 88 investments

You can refer to their website here.

3. Okta Ventures

Okta Ventures is the corporate venture capital arm of Okta, the well-known identity and access management company. The firm invests in the next generation of companies focused on identity, privacy, and security solutions.

As a corporate VC, Okta Ventures provides strategic value beyond capital, investing from seed to late-stage rounds. Their portfolio shows a history of successful exits to major tech companies, including Dig Security (acquired by Palo Alto Networks) and Adaptive Shield (acquired by CrowdStrike).

This firm is an excellent match for founders in the identity and security sectors who could benefit from a strategic partnership with an industry leader. If your long-term plan includes an acquisition by a large tech company, their track record makes them a strong potential partner.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Identity, Privacy, Security, Financial Services
• Geographical presence: San Jose, CA
• Founded: 2009
• Notable portfolio companies: Dig Security, Adaptive Shield, Tessian
• Portfolio size: 45 investments

You can refer to their website here.

4. Lockheed Martin Ventures

As the venture arm of Lockheed Martin, this firm invests in companies developing technologies with strategic importance to the aerospace, defense, and national security sectors. Their focus is on long-term partnerships that go beyond simple financial returns.

The firm concentrates on early-stage companies working on difficult technical problems in areas like national security, aerospace, and advanced hardware. Their portfolio includes companies like Ayar Labs, which develops optical I/O chips, and DUST Identity, which secures hardware with diamond-dust signatures.

Lockheed Martin Ventures is a strong fit for founders whose technology has clear applications in the defense, aerospace, or national security industries. If you are seeking a strategic partner with deep technical expertise and a potential path to government or enterprise contracts, this firm is worth considering.

• Investment stages: Early Stage Venture
• Industries of focus: National Security, Aerospace, Hardware, Security
• Geographical presence: Bethesda, MD
• Founded: 2007
• Notable portfolio companies: Ayar Labs, Terran Orbital, DUST Identity
• Portfolio size: 91 investments

You can refer to their website here.

5. Ascent Venture Partners

Ascent Venture Partners is a Boston-based firm that has been backing B2B technology companies since 1985. They focus on early-stage investments and have supported over 100 businesses throughout their history.

The firm has a long track record in enterprise technology, with a clear focus on analytics and security. Their portfolio demonstrates a pattern of successful exits, including the IPO of ZoomInfo and the acquisition of CloudLock by Cisco.

Ascent is a good match for founders of early-stage B2B tech companies, particularly in the data analytics and security sectors. If your goal is a strategic acquisition by a larger tech company, their experience makes them a compelling partner.

• Investment stages: Early and late-stage venture
• Industries of focus: B2B Technology, Analytics, Security
• Geographical presence: Boston, MA
• Founded: 1985
• Notable portfolio companies: ZoomInfo, CloudLock, PerspecSys
• Portfolio size: 108 investments

You can refer to their website here.

6. MassVentures

MassVentures is a venture capital firm with a strict focus on supporting startups based in Massachusetts. Since its founding in 1978, it has aimed to help local companies grow and succeed within the state's ecosystem.

The firm invests across a company's entire lifecycle, from seed and grant funding to late-stage venture rounds. Their portfolio shows a history of profitable exits, including the acquisition of crowd-testing platform Applause and retail-data company OwnerIQ.

MassVentures is a great match for founders building companies in Massachusetts, particularly in the IT, media, or security industries. Their broad stage focus and local commitment make them a compelling partner for teams seeking support within the state's tech community.

• Investment stages: Seed, Grant, Early Stage Venture, Late Stage Venture
• Industries of focus: Information Technology, Media and Entertainment, Security
• Geographical presence: Massachusetts
• Founded: 1978
• Notable portfolio companies: Applause, MachineMetrics, lifeIMAGE
• Portfolio size: 437 investments

You can refer to their website here.

7. Dreamit Ventures

Based in Philadelphia, Dreamit Ventures is a venture fund that backs startups with existing pilots or revenue. Since 2007, they have focused on companies that are ready to scale their operations.

The firm invests across multiple early stages but has a clear preference for companies with proven traction. Their portfolio shows a strong history of exits, including the $390 million acquisition of LevelUp by Grubhub and Houseparty's purchase by Epic Games.

Dreamit is a strong potential partner if you are a founder in the security sector with a product that already has some market validation. They are well-suited for teams looking for a partner to help them scale effectively.

• Investment stages: Seed, Convertible Note, Early Stage Venture, Non-Equity Assistance
• Industries of focus: Security (Cloud, Network, Fraud Detection), Identity Management, Privacy
• Geographical presence: Philadelphia, PA
• Founded: 2007
• Notable portfolio companies: LevelUp, TrendKite, SeatGeek, Houseparty
• Portfolio size: 403 investments

You can refer to their website here.

8. J.P. Morgan Securities Inc.

J.P. Morgan Securities is the investment banking and venture capital arm of the global financial services firm. Based in New York, it operates as a major player across various stages of company financing.

The firm's investment strategy is notably broad, covering everything from early-stage venture to private equity and post-IPO deals. Their portfolio includes high-profile exits like the in-flight Wi-Fi provider Gogo, which had a successful IPO, and Legendary Entertainment, which was acquired for $3.5 billion.

This firm is a suitable partner for founders of established companies, including those in the security sector, who are preparing for significant growth or an exit. Their capacity for late-stage, private equity, and post-IPO financing makes them a good fit for mature businesses.

• Investment stages: Debt, early and late-stage venture, private equity, post-IPO, and secondary market
• Industries of focus: Security
• Geographical presence: New York, NY
• Founded: 1985
• Notable portfolio companies: Gogo, Legendary Entertainment, LivingSocial
• Portfolio size: 59 investments

You can refer to their website here.

9. East Los Capital

East Los Capital is a private equity and venture capital firm based in Los Angeles. They focus on tech-enabled companies in the lower middle market across sectors like software, internet, and healthcare.

The firm invests in both venture and private equity stages, showing a commitment to the lower middle market. Their portfolio includes several high-growth companies, such as Caylent, an AWS partner which they successfully exited, and TRM Labs, a blockchain intelligence firm.

East Los Capital is a good fit for founders of established, tech-enabled businesses in sectors like security, software, or healthcare. They are particularly well-suited for companies in the lower middle market seeking a partner for growth and a potential exit.

• Investment stages: Private Equity, Venture
• Industries of focus: Cloud Security, Cyber Security, Software, Healthcare, Media
• Geographical presence: Los Angeles, CA
• Founded: 2018
• Notable portfolio companies: Caylent, Basepaws, Finix, FLYR Labs, TRM Labs
• Portfolio size: 22 investments

You can refer to their website here.

What This Tells Us About The VC Scene for Security Companies

Our review of these top security investors reveals a healthy and balanced funding environment. For you as a founder, this means there are active partners available across the entire company lifecycle, from pre-seed and early-stage rounds to late-stage growth capital. The presence of firms like Glasswing Ventures alongside late-stage players like J.P. Morgan shows that capital is accessible whether you are just starting out or preparing for an exit.

The investor base is also varied. While there is a notable concentration of firms in East Coast hubs like Boston and New York, there are strong partners on the West Coast as well. This mix of traditional VCs, corporate venture arms, and private equity firms gives you a range of options when seeking the right strategic fit for your company's goals.

Raise Confidently with Rho

Having a focused list of investors is critical when your time and energy are limited during a fundraise. Our guide is designed to help you target the right partners for your security company.

If you’ve just raised, Rho can help you set up your financial stack in minutes. We offer business banking, corporate cards, and bill pay to help you manage your new capital efficiently.

FAQs about Venture Capital Firms Focused on Security

Which US cities are hubs for security venture capital firms?

Key hubs for security venture capital firms include Boston and New York, known for their strong financial and tech sectors. The San Francisco Bay Area is another major center, offering proximity to a vast ecosystem of technology companies and investors.

What do early-stage security VC firms look for in a startup?

Early-stage security VC firms prioritize a strong founding team with relevant expertise, a product addressing a clear market need, and initial traction. Evidence of a working prototype or early customer interest is often essential for securing funding.

Are there VC firms that focus on both AI and security?

Yes, many AI-focused venture capital firms actively invest in security. These investors look for companies using artificial intelligence to create advanced solutions for threat detection, data protection, and other complex security challenges, valuing deep technical expertise.

How do defense venture capital firms differ from traditional VCs?

Defense venture capital firms often seek technologies with strategic value for national security, not just financial returns. They provide unique access to government and defense industry networks, making them ideal partners for startups in the defense tech space.

What is the difference between venture capital and private equity?

Venture capital typically funds early-stage, high-growth companies for a minority stake. Private equity usually invests in more mature businesses, often acquiring a controlling interest to improve operations and financial performance before an exit.

How can our startup manage its finances after a successful fundraise?

After securing funding, it's important to have a solid financial stack. A platform like Rho can help you manage your new capital with integrated business banking, corporate cards, and automated accounts payable.