Israel's Cybersecurity Sector Raises $4 Billion in 2024
- Tech Brief
- Jan 9
- 1 min read
In 2024, Israel's cybersecurity sector experienced a significant surge, raising approximately $4 billion across 75 to 89 funding rounds, more than doubling the $1.85 billion secured in 2023.
Tech in Asia
This growth was largely driven by increased demand for cloud and artificial intelligence security solutions.
Reuters
Key Highlights:
Major Contributors: Leading the funding surge were companies like Wiz, which raised $1 billion, and Cyera, securing $600 million across two transactions.
Investment Stages: The sector saw 50 seed or early-stage rounds, raising a total of $400 million. Growth stages (Series C and above) witnessed 16 rounds, amassing $2.9 billion, a significant increase from $888 million in 2023.
Mergers and Acquisitions (M&A): The cybersecurity sector also experienced heightened M&A activity, with 20 deals collectively valued at $4.8 billion. Notably, Israeli companies accounted for 25% of these acquisitions, including Wiz's purchases of Dazz and Gem, and Cyera's acquisition of Trail Security.
Global Interest: International corporations increased their involvement in Israel’s cybersecurity market. For instance, CrowdStrike acquired Flow Security and Adaptive Shield, while Akamai purchased Noname Security.
Despite geopolitical challenges, including conflicts that began after the Hamas attack on October 7, 2023, Israel's cybersecurity industry demonstrated resilience and adaptability. The sector's growth is attributed to a strong entrepreneurial culture, often stemming from elite military intelligence units, and a robust startup ecosystem.
Reuters
Analysts predict continued expansion and increased funding activity in Israel's cybersecurity sector throughout 2025, driven by ongoing innovation and a global demand for advanced security solutions.
Reuters
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