Israeli Cyber Firms Attract 40% of U.S. Private Investment

11 July, 2025

The number of cybersecurity companies in Israel has grown by 86% over the past decade, reaching around 505 active firms today. About 60% are in early stages, while approximately 16% are in the growth stage

[Above: Share of private cybersecurity investments (blue) as a percentage of all Israeli high-tech investments. Source: Startup Nation Central]

The amount of private capital funneled into Israeli cybersecurity companies nearly doubled in 2024 compared to the previous year, according to the annual Cybersecurity Sector Report by Startup Nation Central. Based on data from the organization’s Finder business intelligence platform, the report reveals that roughly 40% of all private cybersecurity investments in the U.S. were directed toward Israeli companies—at a time when cybersecurity funding in Europe and Asia declined. The findings reinforce Israel’s status as a global leader in information security.

The report covers approximately 500 active cybersecurity firms in Israel specializing in AI system security, cloud protection, secure enterprise applications, and information risk management. While cyber companies represent only about 7% of the total 7,000 Israeli high-tech companies, they attracted 38% of all high-tech investments in 2024. The number of cybersecurity firms in Israel rose by 86% over the past decade—from 272 in 2014 to 505 in 2024. Around 60% are in early-stage development, while 16% are in growth stage.

Military Expertise and a Strong Ecosystem

The sector’s employment figures also stand out: about 20% of Israeli cyber companies employ 51–200 people, compared to just 12% across the broader tech industry. Another 11% of cyber firms employ over 200 people (vs. 5% in the rest of the high-tech sector). Mergers and acquisitions are the dominant exit strategy in the field: 11% of cybersecurity firms are acquired in early stages (compared to 7% in other tech sectors), although only 1% reach an IPO, versus around 4% on average across other verticals.

Yariv Lotan, VP of Product and Data at Startup Nation Central, noted:
“2024 and early 2025 were strong years for Israeli cybersecurity, with nearly double the amount of private funding. Israel is establishing itself as a global cybersecurity powerhouse thanks to deep military expertise, a robust ecosystem, and strong investor trust.”

Avi Hasson, CEO of Startup Nation Central, added:
“Cybersecurity is a global frontline. AI and cloud technologies are creating new threats and driving immense demand for advanced solutions. This presents a major opportunity for Israeli cyber companies.”

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Posted in: Cyber , News

Posted in tags: SNC

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