Infosec VC investment faced pressure from declining share prices of high-growth incumbents. Funding slumped 35.8% QoQ to $5.1 billion yet remained in line with quarters prior to Q4 2021.Median late-stage valuation dropped 26.1% from $257.3 million in 2021 to $190.0 million in Q1 2022 across 25 deals. Only 14 mega-deals closed, the lowest total since Q4 2020. Of those that did close, all but two came from application security, identity & access management, and security operations, demonstrating the shifting boundary of security vulnerabilities to web applications and access control policies. Web3 security continued to be a driving theme for venture funding even in a bear market for cryptocurrency. Early-stage investment remained robust, led by Sequoia Capital’s five early-stage investments. We believe a slowdown in early-stage investment may materialize as market conditions remain depressed.