Despite the challenges of war, Israel’s cybersecurity sector achieved a record-breaking $4 billion in investments during 2024 according to a report issued by Glilot Capital Partners on Thursday.
The Herzliya-based venture capital fund’s annual report said this more than doubled the $1.85 billion the sector raised in 2023. The funds were secured across 57 deals, compared to 59 deals last year.
“The cybersecurity challenges are far from solved, creating immense opportunities for innovation. We’re also likely to see Israeli cyber companies pursue IPOs and continue acquiring smaller players as they scale,” Glilot Capital co-founder Eric Kleinstein said.
He predicted a sharp rise in cyber startup funding in the coming year, fueled by the ongoing evolution of GenAI.
Leading the year’s surge were two standout companies: Wiz, which raised $1 billion in a single round, and Cyera, which secured $600 million through two deals. The average seed round reached $8 million, while Series A rounds averaged $34.5 million.
Notably, 20% of early-stage funding went to serial entrepreneurs, the report noted.
The report also said the mergers and acquisitions market also thrived, with $5 billion across 21 deals. Israeli companies accounted for 25% of these transactions, with notable examples including Wiz’s acquisitions of Dazz and Gem, and Cyera’s acquisition of Trail Security.
Foreign corporations like CrowdStrike and Akamai also increased their activity, acquiring multiple Israeli startups such as Flow Security and Noname.
Image - Edi Israel/Flash90; Egor Suvorov/iStock