Israeli cybersecurity firms raised $4 billion in 2024, doubling the amount from 2023, driven by demand for cloud protection and advancements in artificial intelligence, according to YL Ventures.
The cybersecurity sector plays a vital role in Israel’s economy, contributing 20% of economic activity, 16% of jobs, and over half of exports. YL’s State of the Cyber Nation Report highlighted 89 funding rounds in 2024, with 50 early-stage rounds raising $400 million and 16 growth-stage rounds securing $2.9 billion, marking a 300% increase from $888 million in 2023, Reuters news report said.
The report noted global venture capital firms increasingly investing earlier in Israeli companies, signaling a positive outlook for 2025 with more accessible A and B rounds, larger C and later rounds, and an increase in seed funding.
Israel’s elite military intelligence units were credited for fostering a hands-on entrepreneurial culture, despite challenges arising from the October 2023 war, which required many tech sector professionals to serve in the military. Founders adapted to ensure operational continuity amid economic uncertainty and customer concerns.
