Investment in Israeli cybersecurity companies doubled.

Private investment in Israel's cybersecurity sector almost doubled in 2024 compared to the previous year, reaching a volume equivalent to 40% of the U.S. market, while European and Asian markets contracted. This is revealed by the Cybersecurity Spotlight 2025 report, published by the nonprofit organization Startup Nation Central.

Despite geopolitical challenges, including the war between Israel and Hamas, the report emphasizes that these data reflect "unwavering investor confidence in the unique Israeli innovation model."

According to the report, Israeli cybersecurity companies captured 38% of all technology investment in the country during 2024, despite representing only seven percent of the national technology ecosystem.

The main exit path for these companies was mergers and acquisitions (M&A), with 11% of companies being acquired at early stages, compared to a mere 1% that managed to go public. This figure contrasts with the average of four percent of IPO exits in other technology sectors.

The sector also showed signs of robust growth: 16% of cybersecurity companies in Israel are in expansion stages—more than double the average of other technology sectors, which is around seven percent.

Additionally, 31% of Israeli companies in the sector employ more than 50 people, which indicates, according to the organization, "a high level of scalability and a stronger growth profile than that of the technology ecosystem in general."