Israeli Cyber Exits Sum Breaks All-Time Record, Despite Drop in Number of Transactions
The total sum of exits in the Israeli cyber sector in 2023 was the highest ever, reaching over $7 billion. However, the number of exits decreased by 35% compared to its peak in 2021. This data is published ahead of the Cybertech Global Tel Aviv 2024 decade conference, which opens tomorrow at the Tel Aviv Expo
Cybertech
| 07/04/2024
Amir Rapaport, founder of Cybertech. Photo by Cybertech
The state of Israeli cyber: Ahead of Cybertech Global Tel Aviv 2024, the decade anniversary of one of the world's largest cybers events, Cybertech Global and IVC – a data, quantitative research, and business information provider – are releasing a comprehensive overview of the Israeli cyber market.
Cybertech Global Tel Aviv 2024 will open today, April 8th, and run until April 10th, in collaboration with the Israel National Cyber Directorate in the Prime Minister's Office, the Israeli Ministries of Economy and Foreign Affairs, as well as with the Tel Aviv Municipality and in academic partnership with the Ben-Gurion University of the Negev.
According to the data in the Cybertech Global and IVC report, the cyber sector continues to lead the Israeli high-tech industry. Despite the ongoing war and civil unrest against the backdrop of changes in the legal system, the exit amounts of Israeli cyber companies in 2023 reached record highs, totaling $7.1 billion. This marks a 65% increase compared to $2.45 billion in 2022, and a 22.5% increase compared to $5.5 billion in 2021.
This figure is even more significant given the fact that in 2023, no Israeli cyber companies went public at all, and only acquisitions were made. The first quarter of 2024 also opened on a positive note. Despite the ongoing war, the Israeli cyber sector recorded exits totaling $985 million. However, the number of exits for Israeli cyber companies dropped by 35%, from 37 exits in 2021 to 24 exits in 2023. In the first quarter of 2024, 8 exits were recorded. The years 2022-2020 were exceptional in terms of unicorns and large exits, but compared to 2019 and 2018, the declines were not very sharp.
The total funding raised by Israeli cyber companies in 2023 amounted to $2.38 billion – the lowest figure in the past five years. This marks a decrease of 43% compared to 2022, which saw $4.17 billion raised. In the first quarter of 2024, the cybersecurity sector stood out significantly with funding rounds totaling approximately $620 million, constituting 38% of the total funding raised in the first quarter of the year.
In the first quarter of 2024, investment in Israeli cyber companies was distributed as follows: $51.77 million in seed-stage companies, $48 million in Series A companies, $30.25 million in Series B companies, $15 million in Series C companies, and $476 million in later-stage companies (Series D and beyond). Over the past six years, late-stage rounds (Series D and beyond) have been leading in fundraising. In contrast, seed-stage rounds attracted the least amount of funding, although they recorded the highest number of investments.
There are 522 active cyber companies in Israel. The majority are in the early revenue stages (276 companies), with the rest in the research and development stages (125 companies), growth stage (generating revenues of $10 million or more per year – 96 companies), and seed stage (25 companies). From 2014 to 2024, Israeli cyber companies raised $2.64 billion. Throughout this decade, the exits of Israeli cyber companies amounted to $2.506 billion.
Cybertech’s founder, Amir Rapaport, explains that "Cyber companies represent the resilience of Israeli high-tech, and even in a tense security and political situation, they serve as a secure anchor for Israeli innovation. The trend of increased mergers and acquisitions in Israeli cyber, which began last year, continues into 2024, as global cyber threats grow year by year.
“In contrast to other sectors, geopolitical tensions increase interest and investment in cyber companies. Therefore, we expect to see more investments in Israeli cyber companies and new startups that address emerging threats. We are proud to host the pinnacle of local and global cyber and provide a platform for breakthrough Israeli innovation at the largest cyber conference in Israel for the tenth time."
The Cybertech Global Tel Aviv 2024 conference will kick off its tenth edition tomorrow (April 8th) at Expo Tel Aviv (Pavilion 2) and will run for three days. This is the only international event held in Israel despite the war, and it is expected to host thousands of attendees from Israel and abroad, including representatives from over 60 countries, leading figures in the local and global cyber industry, hundreds of top-tier speakers from various cyber-related fields, senior investors from prominent venture capital firms and major banks, prominent researchers, and opinion leaders in the cyber world.
Alongside the main conference sessions and other special events, attendees will also enjoy a rich exhibition featuring leading international corporations and innovative startups.
Various speakers are expected to participate in the main stage’s discussions and cross-disciplinary cyber-related lectures, including the President of the State of Israel, Isaac Herzog; the head of the Israeli National Cyber Directorate, Gabi Portnoy; the CEO of Israel Aerospace Industries (IAI), Amir Peretz; the Managing Director at INCIBE (the Spanish National Institute for Cybersecurity), Félix Antonio Barrio Juárez; and other speakers from senior governmental ranks of European countries such as Britain, Germany, and Norway.
Additionally, founders and senior executives from a variety of leading funds from Israel and abroad are expected to participate in the exhibition and take their place on the main stage, as well as representatives from major cyber companies such as CyberArk, Check Point, Cisco, FireEye, Imperva, YL Ventures, and more.
Among the prominent speakers in this context will be Gil Shwed, CEO of Check Point; Nadav Zafrir, CEO and Co-Founder of Team8 and the former commander of Unit 8200; Amiram Shachar, CEO and Co-Founder of Upwind; Esti Peshin, General Manager of the Cyber Division at Israel Aerospace Industries (IAI)l; and many others.
As with the previous conference, this year's Cybertech event will offer a fresh and in-depth perspective on burning issues and trends in the global cyber landscape. Throughout the three-day conference, attendees can expect to find special events and discussions focused on challenges and opportunities in various areas of cyber.
The diverse panels and lectures will encompass topics such as artificial intelligence and cybersecurity, deep fake, G5 & IoT, health tech, fintech, cloud, cybersecurity at national and international levels, influence campaigns and shaping reality through the cyber dimension and social networks, maritime cybersecurity, cybersecurity in space, cyber entrepreneurship, investments (particularly against the backdrop of local and global crises), attack and defense, building innovative and international ecosystems, women in the tech industry, global cooperation in the cyber era, supply chains, cyber crisis management, infrastructure, and more.
The total sum of exits in the Israeli cyber sector in 2023 was the highest ever, reaching over $7 billion. However, the number of exits decreased by 35% compared to its peak in 2021. This data is published ahead of the Cybertech Global Tel Aviv 2024 decade conference, which opens tomorrow at the Tel Aviv Expo
Amir Rapaport, founder of Cybertech. Photo by Cybertech
The state of Israeli cyber: Ahead of Cybertech Global Tel Aviv 2024, the decade anniversary of one of the world's largest cybers events, Cybertech Global and IVC – a data, quantitative research, and business information provider – are releasing a comprehensive overview of the Israeli cyber market.
Cybertech Global Tel Aviv 2024 will open today, April 8th, and run until April 10th, in collaboration with the Israel National Cyber Directorate in the Prime Minister's Office, the Israeli Ministries of Economy and Foreign Affairs, as well as with the Tel Aviv Municipality and in academic partnership with the Ben-Gurion University of the Negev.
According to the data in the Cybertech Global and IVC report, the cyber sector continues to lead the Israeli high-tech industry. Despite the ongoing war and civil unrest against the backdrop of changes in the legal system, the exit amounts of Israeli cyber companies in 2023 reached record highs, totaling $7.1 billion. This marks a 65% increase compared to $2.45 billion in 2022, and a 22.5% increase compared to $5.5 billion in 2021.
This figure is even more significant given the fact that in 2023, no Israeli cyber companies went public at all, and only acquisitions were made. The first quarter of 2024 also opened on a positive note. Despite the ongoing war, the Israeli cyber sector recorded exits totaling $985 million. However, the number of exits for Israeli cyber companies dropped by 35%, from 37 exits in 2021 to 24 exits in 2023. In the first quarter of 2024, 8 exits were recorded. The years 2022-2020 were exceptional in terms of unicorns and large exits, but compared to 2019 and 2018, the declines were not very sharp.
The total funding raised by Israeli cyber companies in 2023 amounted to $2.38 billion – the lowest figure in the past five years. This marks a decrease of 43% compared to 2022, which saw $4.17 billion raised. In the first quarter of 2024, the cybersecurity sector stood out significantly with funding rounds totaling approximately $620 million, constituting 38% of the total funding raised in the first quarter of the year.
In the first quarter of 2024, investment in Israeli cyber companies was distributed as follows: $51.77 million in seed-stage companies, $48 million in Series A companies, $30.25 million in Series B companies, $15 million in Series C companies, and $476 million in later-stage companies (Series D and beyond). Over the past six years, late-stage rounds (Series D and beyond) have been leading in fundraising. In contrast, seed-stage rounds attracted the least amount of funding, although they recorded the highest number of investments.
There are 522 active cyber companies in Israel. The majority are in the early revenue stages (276 companies), with the rest in the research and development stages (125 companies), growth stage (generating revenues of $10 million or more per year – 96 companies), and seed stage (25 companies). From 2014 to 2024, Israeli cyber companies raised $2.64 billion. Throughout this decade, the exits of Israeli cyber companies amounted to $2.506 billion.
Cybertech’s founder, Amir Rapaport, explains that "Cyber companies represent the resilience of Israeli high-tech, and even in a tense security and political situation, they serve as a secure anchor for Israeli innovation. The trend of increased mergers and acquisitions in Israeli cyber, which began last year, continues into 2024, as global cyber threats grow year by year.
“In contrast to other sectors, geopolitical tensions increase interest and investment in cyber companies. Therefore, we expect to see more investments in Israeli cyber companies and new startups that address emerging threats. We are proud to host the pinnacle of local and global cyber and provide a platform for breakthrough Israeli innovation at the largest cyber conference in Israel for the tenth time."
The Cybertech Global Tel Aviv 2024 conference will kick off its tenth edition tomorrow (April 8th) at Expo Tel Aviv (Pavilion 2) and will run for three days. This is the only international event held in Israel despite the war, and it is expected to host thousands of attendees from Israel and abroad, including representatives from over 60 countries, leading figures in the local and global cyber industry, hundreds of top-tier speakers from various cyber-related fields, senior investors from prominent venture capital firms and major banks, prominent researchers, and opinion leaders in the cyber world.
Alongside the main conference sessions and other special events, attendees will also enjoy a rich exhibition featuring leading international corporations and innovative startups.
Various speakers are expected to participate in the main stage’s discussions and cross-disciplinary cyber-related lectures, including the President of the State of Israel, Isaac Herzog; the head of the Israeli National Cyber Directorate, Gabi Portnoy; the CEO of Israel Aerospace Industries (IAI), Amir Peretz; the Managing Director at INCIBE (the Spanish National Institute for Cybersecurity), Félix Antonio Barrio Juárez; and other speakers from senior governmental ranks of European countries such as Britain, Germany, and Norway.
Additionally, founders and senior executives from a variety of leading funds from Israel and abroad are expected to participate in the exhibition and take their place on the main stage, as well as representatives from major cyber companies such as CyberArk, Check Point, Cisco, FireEye, Imperva, YL Ventures, and more.
Among the prominent speakers in this context will be Gil Shwed, CEO of Check Point; Nadav Zafrir, CEO and Co-Founder of Team8 and the former commander of Unit 8200; Amiram Shachar, CEO and Co-Founder of Upwind; Esti Peshin, General Manager of the Cyber Division at Israel Aerospace Industries (IAI)l; and many others.
As with the previous conference, this year's Cybertech event will offer a fresh and in-depth perspective on burning issues and trends in the global cyber landscape. Throughout the three-day conference, attendees can expect to find special events and discussions focused on challenges and opportunities in various areas of cyber.
The diverse panels and lectures will encompass topics such as artificial intelligence and cybersecurity, deep fake, G5 & IoT, health tech, fintech, cloud, cybersecurity at national and international levels, influence campaigns and shaping reality through the cyber dimension and social networks, maritime cybersecurity, cybersecurity in space, cyber entrepreneurship, investments (particularly against the backdrop of local and global crises), attack and defense, building innovative and international ecosystems, women in the tech industry, global cooperation in the cyber era, supply chains, cyber crisis management, infrastructure, and more.
