Israeli cybersecurity businesses raised $4 billion in 2024, more than double the amount raised in 2023, led by startups looking to safeguard the cloud and a spike in artificial intelligence, global venture capital company YL Ventures said on Tuesday.
Cybersecurity has grown rapidly in Israel’s high-tech industry, which accounts for 20% of economic activity, 16% of jobs, and more than half of exports.
In its State of the Cyber Nation Report, YL said that despite geopolitical instability, it foresees Israel’s cybersecurity influence expanding “from a hotbed of exceptional security solutions to widespread recognition of Israeli cybersecurity startups as dominant global market leaders”.
According to YL, Israel had 89 investment rounds in 2024, 50 of which were seed or early stage rounds that raised a total of $400 million. According to the estimate, global venture capitalists’ financing rounds would more than treble in 2024.
In the development phases, known as C and above rounds, there were 16 rounds that raised $2.9 billion, up 300% from $888 million in 2023, according to YL. In all, Israeli cybersecurity companies raised $1.89 billion in 2023.
“The changes we’re observing in 2024 – global VCs investing earlier in companies, an opening up of the seed and growth round markets and more acquisitions, especially by Israeli companies -signal a rising tide for 2025,” says Andy Ellis, partner at YL Ventures.
“While the floodgates aren’t going to crash open, expect to see more activity across the board: A and B rounds should become more accessible, C and later rounds larger and an increase in seed rounds.”
Ofer Schreiber, senior partner and head of YL’s Israel office, credits Israel’s elite military intelligence units for its success by creating “a no-nonsense, hands-on entrepreneurship culture”.
He noted that the conflict that began when Hamas militants invaded Israel on October 7, 2023, had forced cyber pioneers to confront a new reality, with many in the IT industry being summoned into military duty.
“Founders needed to rally to ensure business and operational continuity in uncertain economic conditions and with a concerned customer base,” Schreiber said.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream formerly known as CIO News is the premier platform dedicated to delivering the latest news, updates, and insights from the CIO industry. As a trusted source in the technology and IT sector, we provide a comprehensive resource for executives and professionals seeking to stay informed and ahead of the curve. With a focus on cutting-edge developments and trends, The Mainstream formerly known as CIO News serves as your go-to destination for staying abreast of the rapidly evolving landscape of technology and IT. Founded in June 2020, The Mainstream formerly known as CIO News has rapidly evolved with ambitious growth plans to expand globally, targeting markets in the Middle East & Africa, ASEAN, USA, and the UK
