Israel’s cybersecurity industry posted a record-setting year in 2024, securing private investment equal to 40% of the total raised by the U.S. market and nearly doubling the funding volume from 2023, according to a new report released on Thursday.
The findings, based on data from the Finder business platform, place Israel firmly at the forefront of digital security innovation even as European and Asian markets shrank amid economic and geopolitical uncertainty.
The 2025 Cybersecurity Spotlight, published by Startup Nation Central (SNC) outlines the sector’s rapid expansion and global influence, fueled by investor confidence in Israel’s unique blend of military-grade expertise, early-stage innovation, and scalable startups. SNC is a Tel Aviv-based non-profit that promotes Israeli startups and innovation.
According to the report, cybersecurity companies make up only 7% of Israel’s 7,000-plus tech companies, but drew 38% of all tech investment in 2024.
“Cybersecurity is one of the most critical sectors in global tech, driven by escalating threats and the rise of AI and cloud technologies,” said Avi Hasson, SNC CEO. “As digital systems increasingly underpin how we live, work, and govern, the demand for resilient cyber solutions will only intensify. Israel is uniquely positioned to lead this transformation and shape the future of digital security.”
The report shows that Israel’s cybersecurity sector grew by 86% over the last decade, from 272 companies in 2014 to 505 in 2024, vastly outpacing the 36% growth seen across the broader tech ecosystem. Nearly 60% of those firms are in early stages, highlighting what the report described as a pipeline of innovation. The sector is also scaling faster: 16% of companies have reached growth-stage maturity, compared to just 7% in other tech segments.
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