Israeli firms secured 38% of all national tech investment, despite representing just 7% of the broader tech industry.
By Shula Rosen
Despite a turbulent global tech climate, Israel’s cybersecurity ecosystem is booming. A recent report from Startup Nation Central reveals that private investment in Israeli cyber startups nearly doubled in 2024—at a time when funding in Europe and Asia declined. Israeli firms secured 38% of all national tech investment, despite representing just 7% of the broader tech industry.
More than 500 cybersecurity companies are active in Israel, developing solutions across a broad spectrum—from cloud and endpoint security to threat intelligence and AI defense. The sector’s growth has outpaced the rest of the startup ecosystem, expanding by 86% over the past decade.
“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, CEO of Startup Nation Central. “Israel is uniquely positioned to lead this transformation.”
That leadership is fueled by military-trained talent, global investment, and a culture of innovation designed for international scale. According to the report, 16% of Israeli cyber firms have reached the growth stage—more than double the rate of other tech sectors.
AI is playing a transformative role. “Until now, only 25% of cybersecurity was about tools; the rest was services and human-driven work. With agentic AI, we can now address the other 75%,” Benny Porat, CEO of Twine Security, told Globes.
Yet with opportunity comes risk. “Generative AI introduces vulnerabilities—deepfakes, prompt injections, and supply chain attacks,” said Tal Sarfaty, Head of Cybersecurity Innovation at Citi. In response, Israeli firms are pioneering new fields like AI infrastructure security and secure enterprise browsers.
The global cyber arms race also fuels innovation. Israeli startups are developing cutting-edge defenses across sectors: cloud (Wiz, Orca), identity (CyberArk, Transmit), endpoint (SentinelOne, Cybereason), and critical infrastructure (Claroty, Upstream Security).
As cyber threats escalate worldwide, Israel’s agile, innovation-driven model and global-first mindset position it as a powerful force in securing the digital future.
Do You Love Israel? Make a Donation - Show Your Support!
Donate to vital charities that help protect Israeli citizens and inspire millions around the world to support Israel too!
Now more than ever, Israel needs your help to fight and win the war -- including on the battlefield of public opinion.
Antisemitism, anti-Israel bias and boycotts are out of control. Israel's enemies are inciting terror and violence against innocent Israelis and Jews around the world. Help us fight back!