RSA Conference Buzz: VCs Stay Bullish on Cyber & AI

The RSA Conference in San Francisco wrapped up with a clear takeaway: optimism is back in the cybersecurity world.

From packed streets in SoMa to buzzing bars and restaurants, the city briefly felt like its pre-pandemic self again. But beyond the atmosphere, the real energy came from venture capitalists who spent the week talking deals, AI, and hopes for a stronger exit market.

Dealmaking Fuels Confidence

If there’s one thing lifting investor sentiment, it’s deal activity.

One headline-grabbing move was the $32 billion acquisition of Wiz by Alphabet. Meanwhile, Palo Alto Networks also set the tone early with its own strategic moves.

So far this year, 32 venture-backed cybersecurity startups have already been acquired. Notable deals include Vulcan Cyber and Oosto. While that pace is slightly behind last year’s total of 105 acquisitions, it still signals a healthy M&A environment.

Another major benchmark came when Mastercard agreed to acquire Recorded Future for $2.65 billion—one of the standout deals in recent cybersecurity history.

Optimism, With a Dose of Reality

Despite global uncertainties—ranging from geopolitical tensions to tariffs and recession fears—most investors remain upbeat.

Dave Zilberman of Norwest Venture Partners summed it up well: venture capitalists are naturally optimistic, even if they acknowledge ongoing instability.

Similarly, David Palmer from Ten Eleven Ventures noted an increase in inbound deal interest, suggesting that the exit market may be slowly warming up.

IPO Dreams Still on Hold

While mergers and acquisitions are picking up, the IPO market tells a different story.

Investors are still preparing their portfolio companies for public listings—but not anytime soon. The expectation that 2025 would reopen the IPO pipeline has largely faded, with most now looking further down the road.

AI Takes Center Stage—With Mixed Views

Like last year, AI dominated conversations at the conference—but opinions were divided.

On one side, “AI for security” is gaining traction. Many believe AI agents can significantly improve efficiency in security operations by handling repetitive tasks. However, some investors worry that these solutions could quickly become commoditized, especially in areas like identity verification and fraud detection.

On the flip side, “security for AI” is seen as a massive long-term opportunity. Protecting AI systems—especially around data integrity and misuse—remains a largely untapped space. But as Dave Zilberman pointed out, this segment is still in its early stages, with only a handful of young startups exploring it.

The Bottom Line

Even with macroeconomic uncertainties, the mood at this year’s RSA Conference was unmistakably positive.

As Alberto Yépez of Forgepoint Capital noted, global conflicts may persist—but dealmaking isn’t slowing down.

For now, venture capitalists are betting that cybersecurity and AI will continue to drive growth—and they’re not waiting on perfect conditions to make their moves.

Also rfead : OpenAI Raises $122B Ahead of Expected IPO Push