Israeli cyber startups raised $4B in 2024 amid war, led by Wiz and Cyera
Israeli cyber startups raised $4B in 2024 amid war, led by Wiz and Cyera
With Wiz and Cyera accounting for nearly 40% of the total, Israel's cyber sector defied challenges to double last year's fundraising totals.
Despite the ongoing war throughout 2024, Israel's cybersecurity industry saw a remarkable surge in investment, raising approximately $4 billion across 75 transactions over the past year. This marks more than a twofold increase compared to the $1.85 billion raised in 59 transactions in the previous year. The data comes from an annual report on Israel's cybersecurity sector published by Glilot Capital Partners, a venture capital fund specializing in early-stage and growth investments in cybersecurity startups.
The significant increase in funding was largely driven by two standout companies: Wiz, which raised an impressive $1 billion, and Cyera, which secured $600 million across two transactions. The report notes that the average Seed round in 2024 was $8 million, while Series A rounds averaged $34.5 million. 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.
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Glilot Capital's Arik Kleinstein (left) and Wiz XEO Assaf Rappaport.
(Photos: Netanel Tobias, Orel Cohen)
Mergers and acquisitions (M&A) in the cybersecurity sector also gained momentum, with 20 deals collectively valued at $4.8 billion. A notable trend was the increasing involvement of Israeli cyber firms in acquiring other local companies. Israeli firms accounted for 25% of the acquisitions, with major deals including Wiz acquiring Dazz and Gem, Silverfort acquiring Rezonate, Check Point acquiring Cyberint, and Cyera acquiring Trail Security.
Global corporations also ramped up their activity in Israel’s cybersecurity market. For instance, CrowdStrike acquired Flow Security and Adaptive Shield, Akamai purchased Noname Security, and BitSight acquired Cybersixgill.
Arik Kleinstein, co-founder of Gillot 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."
