Summary:
$4 billion raised in Israel's cybersecurity sector in 2024
Wiz and Cyera lead the charge with $1 billion and $600 million respectively
20% of early-stage fundraising from serial entrepreneurs
20 M&A deals valued at $4.8 billion
Optimism for increased capital in new cyber ventures next year
A Remarkable Year for Israeli Cybersecurity
In 2024, despite the ongoing war, Israel's cybersecurity industry experienced a remarkable surge in investment, raising approximately $4 billion across 75 transactions. This represents a more than twofold increase compared to the $1.85 billion raised in 59 transactions in the previous year. The insights are derived from an annual report by Glilot Capital Partners, a venture capital fund focused on early-stage and growth investments in cybersecurity startups.
Key Players Driving Investment
The significant increase in funding was largely driven by two standout companies:
- Wiz raised an impressive $1 billion.
- Cyera secured $600 million across two transactions.
The report also highlighted that the average Seed round in 2024 reached $8 million, while Series A rounds averaged $34.5 million. Notably, serial entrepreneurs accounted for 20% of early-stage fundraising activity. On average, Series A valuations for startups were approximately $100 million, with companies raising $25-30 million per round.
Mergers and Acquisitions on the Rise
The M&A landscape in the cybersecurity sector also gained momentum, with 20 deals valued at $4.8 billion. A notable trend was the increasing involvement of Israeli cyber firms in acquiring other local companies, accounting for 25% of the acquisitions. Major deals included:
- Wiz acquiring Dazz and Gem.
- Silverfort acquiring Rezonate.
- Check Point acquiring Cyberint.
- Cyera acquiring Trail Security.
Global Corporations Join the Fray
Global corporations ramped up their activity in Israel’s cybersecurity market. For instance:
- CrowdStrike acquired Flow Security and Adaptive Shield.
- Akamai purchased Noname Security.
- BitSight acquired Cybersixgill.
Optimism for the Future
Arik Kleinstein, co-founder of Glilot Capital, expressed optimism for the future, stating, "In the coming year, we will see a significant increase in the amount of capital raised for new cyber ventures."
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