The RSA Conference in San Francisco wrapped up with a clear takeaway: optimism is high among cybersecurity investors. Conversations throughout the week centered around dealmaking, the IPO landscape, and the growing influence of AI.

Thousands gathered in SoMa, reviving the city’s pre-pandemic energy. Bars and restaurants were filled, and the positive atmosphere mirrored the outlook of venture capitalists attending RSA.

Notable deals fueled that optimism. The announcement of a $32 billion acquisition involving cloud security company Wiz and Google’s parent company Alphabet, as well as activity from Palo Alto Networks, underscored the momentum. Investors hope this signals real returns, with more capital being returned to limited partners through exits.

So far this year, 32 cybersecurity startups backed by venture capital have been acquired — just behind last year’s pace of 105, which was the best year since 2021. Recent deals include Vulcan Cyber and real-time threat detection firm Oosto. Mastercard also agreed to acquire threat intelligence firm Recorded Future for $2.65 billion.

Despite encouraging numbers, global uncertainties remain. Ongoing conflicts, trade tensions, and recession fears pose potential risks. Still, most investors at RSA expressed confidence in the sector’s resilience.

“We’re optimists,” said Dave Zilberman, general partner at Norwest Venture Partners. “But with tariffs and international dynamics, there’s some instability we can’t ignore.”

David Palmer of Ten Eleven Ventures noted a rise in unsolicited interest for deals and expects exit activity to improve. While the IPO window remains mostly shut, many firms are preparing for when conditions shift.

Although public markets haven’t bounced back as hoped, investors see strength in cybersecurity. M&A activity and fundraising continue to signal a healthy market.

“There will always be global conflict,” said Alberto Yépez, co-founder of Forgepoint Capital. “But investors are still making deals. That won’t change unless broader conditions deteriorate.”

Key Trends from RSA:

• AI in Cybersecurity:
  AI remained a major topic, especially its dual role as a tool for defense and a target for protection. Some see AI as a way to automate routine security tasks, especially in SOCs. Others believe it will become commoditized, particularly in identity and fraud detection.
• Securing AI Systems:
  There’s growing awareness around the need for security in AI development — particularly around data integrity and misuse. But the field is still young, with few mature startups tackling these challenges. “Security for AI is still in the early stages,” Zilberman noted.
• IPO Outlook:
  While some investors are hopeful about future IPOs, most agree it won’t happen this year. Many firms are still preparing for eventual listings, but expectations have shifted.