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. You need a partner who understands the specific challenges and opportunities within cybersecurity and defense tech. Approaching the wrong firms can be a waste of valuable time during a critical fundraising period.

To help you focus your efforts, our team at Rho has put together this overview of top security venture capital firms. This guide is designed to give you a quick, clear picture of the key investors in the field, so you can identify the ones that best align with your company's vision and stage.

Actively raising? You can now access non-dilutive funding options like venture debt and credit lines through Rho Capital. Rho provides access business banking, corporate cards, and bill pay — built for startup teams moving fast.

Key Takeaways

• For a security startup, securing venture funding is about gaining a strategic partner with deep industry knowledge, not just receiving capital.
• Firms like Glasswing Ventures, LRVHealth, Okta Ventures, and Lockheed Martin Ventures are notable backers in the security space, each with a focus on supporting specialized technology.
• Once you've closed a round, Rho helps you manage your new capital with an integrated platform for business banking, corporate cards, and bill pay.

Which VC Firms in Security Are Right for Your Stage?

Knowing which investors to talk to is crucial, whether you're an early-stage company or preparing for an exit. To help, we've created a brief overview of VC firms that specialize in security, organized by their investment stage.

Pre-seed and Seed VC Firms in Security

This initial stage is for founders developing a core idea, building a minimum viable product (MVP), and finding early customers. For founders at this stage, security-focused VC firms like Dreamit and Glasswing Ventures are often a good fit, as they specialize in backing companies from the very beginning.

Early Stage VC Firms in Security

Early-stage funding, typically Series A and B, is for startups with proven product-market fit that need capital to scale their team and accelerate growth. Some of the top early-stage venture capital firms in the security space include Lockheed Martin Ventures and Ascent, which focus on helping companies expand their market presence. Once funding is secured, Rho’s integrated financial tools help you manage and deploy capital efficiently.

Late Stage VC Firms in Security

Late-stage rounds are designed for established companies preparing for significant expansion, a potential acquisition, or an initial public offering (IPO). While investors like J.P. Morgan and East Los Capital provide equity financing, Rho Capital can also connect you with non-dilutive options like venture debt to fuel growth without giving up more of your company.

Keep in mind that many security venture capital firms invest across multiple stages, offering support from a company's inception through to its growth phases.

To help you find the right partner, we've compiled an overview of leading VC firms that focus on security startups. For each firm, you'll find information on their investment stages, geographic focus, and what makes them a notable choice for founders.

1. Glasswing Ventures

Based in Boston, Glasswing Ventures invests in early-stage startups that apply artificial intelligence and other frontier technologies. The firm concentrates its investments in the enterprise and cybersecurity markets.

Glasswing shows a clear preference for technically complex, AI-driven products, which is evident in portfolio companies like Allure Security and Black Kite. Their investments suggest a focus on backing companies that use deep tech to solve specific business and security problems.

This firm is a strong potential partner for founders at the seed or early stages whose products are centered on AI. They are particularly well-suited for companies building solutions for enterprise customers or addressing cybersecurity threats.

• Investment stages: Seed, Early Stage Venture
• Industries of focus: Artificial Intelligence (AI), Enterprise Software, Security
• Geographical presence: Boston, Massachusetts
• Founded: 2016
• Notable portfolio companies: Black Kite, Allure Security, Zylotech
• Portfolio size: 71 investments

You can refer to their website here.

2. LRVHealth

LRVHealth is a venture capital firm with a dedicated focus on the healthcare industry. Established in 2000, the firm is built around a team of experienced healthcare investors, operators, and advisors.

The firm’s "Inside Healthcare" model signals its commitment to backing companies within the medical ecosystem, from medical devices to enterprise software. This is reflected in their portfolio, which includes successes like the patient-intake platform Phreesia.

LRVHealth is an excellent match for founders building companies in healthcare, medical devices, or related security technology. After closing a round, Rho can help you manage the new capital with an integrated platform for business banking, corporate cards, and bill pay.

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

You can refer to their website here.

3. Okta Ventures

As the corporate venture capital arm of Okta, Okta Ventures invests in companies developing the next generation of identity, privacy, and security solutions. They support startups from their earliest stages through to their growth rounds.

The firm’s strategic focus is clear from its portfolio, which includes companies like Dig Security and Adaptive Shield, both of which were acquired by major cybersecurity players. This pattern suggests Okta Ventures excels at identifying startups with strong potential for integration and successful exits.

Okta Ventures is an ideal partner for founders whose technology aligns with the identity and security ecosystem. Once you secure strategic funding, Rho’s integrated platform for business banking, corporate cards, and bill pay helps you manage and deploy capital efficiently.

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

You can refer to their website here.

4. Lockheed Martin Ventures

As the venture capital arm of Lockheed Martin Corporation, this firm invests in early-stage companies that align with its strategic interests in national security and aerospace technology.

Their portfolio shows a strong preference for deep-tech and hardware startups, with investments in companies like Ayar Labs, which develops optical I/O chips, and DUST Identity, which uses diamond dust for hardware authentication. This focus indicates a commitment to technologies with direct applications in the defense and security sectors.

This firm is a great potential partner for founders developing advanced hardware or software for the aerospace, defense, and national security industries. After securing a strategic investment, Rho’s integrated platform helps you manage your new capital with tools for banking, corporate cards, and payments.

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

You can refer to their website here.

5. Ascent Venture Partners

Ascent Venture Partners has been a fixture in the Boston venture scene since 1985, focusing on early-stage B2B technology companies. The firm has a long history of backing emerging businesses and helping them grow.

Ascent’s portfolio shows a clear pattern of success with B2B companies, especially in security and analytics. Their track record includes notable exits like ZoomInfo’s IPO and the acquisition of CloudLock by Cisco.

This firm is a solid choice for founders of early-stage B2B startups who are looking for an experienced partner. If you need to extend your runway before or after a round with Ascent, Rho Capital can connect you with non-dilutive funding options.

• Investment stages: Early Stage Venture, Late Stage Venture
• Industries of focus: B2B Technology, Security, Analytics
• Geographical presence: Boston, Massachusetts
• Founded: 1985
• Notable portfolio companies: ZoomInfo, CloudLock, PerspecSys
• Portfolio size: Over 100 investments

You can refer to their website here.

6. MassVentures

MassVentures is a venture capital firm dedicated to fostering the growth of startups within Massachusetts. With a history dating back to 1978, the firm has a long-standing commitment to the local technology ecosystem.

The firm's portfolio demonstrates a strong history of guiding companies to successful exits, including the acquisitions of Applause and OwnerIQ. Their investment approach is flexible, offering support from seed rounds and grants to late-stage funding.

MassVentures is a great choice for founders based in Massachusetts who are building companies in the technology or security sectors. Once you've secured your funding, our team at Rho can help you manage it with an integrated platform for banking and spend management.

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

You can refer to their website here.

7. Dreamit Ventures

Dreamit Ventures is a Philadelphia-based firm that backs startups with existing pilots or revenue. They focus on companies that are primed for growth and ready to scale their operations.

The firm has a wide-ranging interest in security, from cloud and network security to fraud detection and identity management. Their portfolio includes notable exits like the acquisition of LevelUp by Grubhub and well-known brands like SeatGeek.

Dreamit is a strong match for founders who have already established a foothold with a pilot or early revenue and are seeking a partner to help them scale. If you need to extend your runway before or after a round with Dreamit, Rho Capital can connect you with non-dilutive funding options.

• Investment stages: Seed, Early Stage Venture, Convertible Note, Non Equity Assistance
• Industries of focus: Security (Cloud, Fraud Detection, Identity Management), Generative AI
• Geographical presence: Philadelphia, Pennsylvania
• Founded: 2007
• Notable portfolio companies: LevelUp, TrendKite, SeatGeek, Houseparty
• Portfolio size: Over 400 investments

You can refer to their website here.

8. J.P. Morgan Securities Inc.

As the investment banking and venture capital arm of a global financial institution, J.P. Morgan Securities operates at a massive scale. Based in New York, the firm has been an active investor since 1985, participating across the full spectrum of company financing.

The firm’s investment strategy is exceptionally broad, covering everything from early-stage venture to post-IPO debt and private equity. Their portfolio reflects this diversity, with investments in companies like Gogo and Legendary Entertainment, indicating a focus on businesses with the potential for significant market impact.

J.P. Morgan is a suitable partner for founders of mature companies seeking a powerful financial institution to support late-stage growth, an IPO, or an acquisition. For founders who need to extend their runway before a large round, Rho Capital offers access to non-dilutive financing options like venture debt.

• Investment stages: Early Stage Venture, Late Stage Venture, Private Equity, Debt, Post-IPO
• Industries of focus: Security
• Geographical presence: New York, New York
• Founded: 1985
• Notable portfolio companies: Gogo, Legendary Entertainment, LivingSocial
• Portfolio size: 59 investments

You can refer to their website here.

9. East Los Capital

Based in Los Angeles, East Los Capital is a private equity and venture firm that invests in tech-enabled companies in the lower middle market. The firm operates across a broad range of industries, including software, services, healthcare, and consumer technology.

The firm’s portfolio shows a clear focus on businesses with strong growth metrics and clear exit potential, evidenced by investments like cloud-services partner Caylent and the direct-to-consumer pet genomics company Basepaws. This suggests a strategy of backing companies that are ready to scale and positioned for acquisition or significant market growth.

East Los Capital is a strong potential partner for founders of established companies with proven traction who are seeking capital for growth and an eventual exit. If you need to extend your runway before a round, our team at Rho Capital can connect you with non-dilutive funding options.

• Investment stages: Private Equity, Venture
• Industries of focus: Cloud Computing, Security, Health Care, Consumer, Media
• Geographical presence: Los Angeles, California
• Founded: 2018
• Notable portfolio companies: Caylent, Basepaws, Finix, TRM Labs
• Portfolio size: 22 investments

You can refer to their website here.

What This Tells Us About The VC Scene for Security Companies

This overview shows that the funding market for security companies is well-balanced across different stages. You have access to investors focused on everything from pre-seed and seed rounds to late-stage private equity. This means that whether you are developing an initial product or scaling an established business, there are specialized partners available to support your growth.

While there is a notable concentration of security-focused firms in Boston, the list also includes investors from New York, California, and other tech hubs, giving you geographic flexibility in your search. As you plan your next steps, our team at Rho Capital can help you access non-dilutive funding options like venture debt, which can strengthen your financial position before you approach equity investors.

Raise Confidently with Rho

Having a focused list of relevant investors saves you critical time and energy during a fundraise. Our guide is designed to help you target the right partners who understand the security industry.

If you’re seeking funding, Rho Capital connects you to non-dilutive funding options like venture debt and credit lines through a fast, guided process. We help you access financing tailored to your stage and business model without chasing lenders.

Once capital is secured, Rho provides integrated tools—business banking, corporate cards, and automated bill pay—to help you manage and deploy funds efficiently, so you can focus on growth.

FAQs about Venture Capital Firms Focused on Security

Which are the top security venture capital firms in Silicon Valley?

Silicon Valley is home to many top firms. While our list highlights several, others like Andreessen Horowitz and Lightspeed Venture Partners are also significant investors in the security space, often backing companies from early to growth stages.

What are the key deep tech venture capital firms for security startups?

Firms like Lockheed Martin Ventures and Glasswing Ventures specialize in deep tech. They look for companies with defensible, complex technology in areas like AI, advanced hardware, and enterprise security, providing both capital and critical industry expertise.

Are there major security-focused VC firms in Europe?

Yes, Europe has a growing number of security-focused investors. Firms like Paladin Capital Group and C5 Capital are prominent in the European market, backing cybersecurity and deep tech companies across various stages of development.

What tools help with financial reporting to venture capital firms?

Maintaining clear financial reports is vital. Integrated platforms like ours provide customizable dashboards and accounting connections, simplifying how you share cash flow and spending data with your investors, keeping everyone aligned without extra administrative work.

How important is a VC's industry focus for a security startup?

It's extremely important. A security-focused VC firm provides more than money; they offer a network of relevant contacts, an understanding of the threat environment, and strategic guidance that generalist investors simply cannot match.

How can Rho help my startup manage its venture capital?

After your fundraise, our integrated platform helps you manage your new capital with business banking, corporate cards, and automated payments. Rho provides the financial tools you need to deploy funds efficiently and focus on growth.