From Unit 8200 to Wiz’s $32B exit: The blueprint for Israeli cyber success
New data breaks down what makes Israel’s cyber entrepreneurs so effective.
The Israeli cybersecurity industry has long been a force in global technology, producing a steady stream of startups that deliver high-profile exits. But this week, the sector reached a new milestone: Google’s $32 billion acquisition of Wiz, the largest cybersecurity deal in history, underscoring the immense value created in Israel’s cyber ecosystem. As investors and analysts attempt to decode the formula behind these successes, new research by VC fund Ibex Investors sheds light on the traits that define Israel’s top cyber entrepreneurs.
Even before the Wiz deal, Israeli cybersecurity companies have generated more than $23 billion in exit value over the past six years alone. The sector’s momentum is accelerating—67% of cybersecurity acquisitions in 2024 crossed the $100 million threshold, nearly tripling the number of such exits compared to 2019. This trend highlights the surging demand for sophisticated security solutions as cyber threats become more complex.
So what makes Israel’s cybersecurity founders so successful? A comprehensive study of nearly 200 Israeli cybersecurity companies acquired in the last 15 years suggests that a handful of key factors set these entrepreneurs apart.
Unit 8200: The Cyber Proving Ground
For decades, Israel’s Unit 8200, an elite military intelligence unit, has been described as the “Ivy League” of global cybersecurity. The data backs up the claim—nearly 50% of founders whose companies were acquired for over $100 million in the last decade served in the unit. The impact of this experience is significant: the average acquisition value for Unit 8200 alumni-led startups surpasses $317 million, with a median deal size of $200 million.
The explanation for this success lies in the unit’s unique culture. Every year, around 1,000 recruits—most of them barely 19 years old—enter one of the most demanding training programs in cyber intelligence. Within a short span, they must master the art of cyber warfare, innovation under pressure, and leadership in high-stakes environments. This high-intensity experience, combined with access to a tight-knit alumni network, creates a strong foundation for future entrepreneurs.
Youth and Technical Expertise Matter
The research also points to a strong correlation between the age of founders and their eventual exit value. Among companies that were acquired for over $500 million, the average CEO was just 41 years old at the time of exit. For deals above $100 million, the average age dropped to 38.
In addition to youth, technical expertise plays a defining role. Over 70% of the CEOs analyzed came from technical roles, primarily in software development, before launching their startups. This hands-on experience allowed them to build companies that directly addressed security challenges they had encountered firsthand.
The Power of Founding Teams
While solo founders exist, the research indicates that cybersecurity startups with two or three co-founders tend to achieve higher exit values. The data shows that two-person founding teams averaged exits of $367 million, while three-person teams reached an average of $387 million. Many of these partnerships were forged during military service or in previous tech roles, underscoring the importance of professional trust and complementary skill sets.
Academic Rigor Still Plays a Role
Despite the emphasis on military experience, higher education remains a key factor. More than 90% of the CEOs who led companies to exits above $100 million held degrees from Israeli universities. Computer science was the most common field of study, often paired with business or physics, reinforcing the notion that technical acumen combined with strategic thinking is a powerful asset in cybersecurity entrepreneurship.
A Blueprint for Future Success?
The success of Israeli cybersecurity founders is not just about their backgrounds—it’s about how they apply their skills to navigate a rapidly evolving industry. While Unit 8200 provides a foundation in technical expertise and leadership, its alumni succeed because they continuously adapt to shifting threats and technological trends. Likewise, while younger founders appear to have an edge, the real advantage comes from their willingness to take risks and seize emerging opportunities before the market fully catches up.
With cybersecurity continuing to be a top global priority, Israel’s ability to produce top-tier security innovators shows no signs of slowing down. As seen in this week’s record-breaking Wiz acquisition, the founders of which hail from IDF Units 8200 and 81 the combination of military-honed skills, technical expertise, and entrepreneurial ambition continues to set Israeli cyber founders apart—and investors are paying attention.
“There are certain truisms within the venture ecosystem that are developed by way of experience and mentorship,” said Ibex Investors Partner Aaron Rinberg. “It is great to be able to use data to reinforce the accuracy of those gut feelings. It is well known that Wiz was co-founded by Assaf Rappaport, an elder millennial (born 1983), repeat entrepreneur, and alumnus of Unit 81 – turns out there is a correlation that can be drawn by this towards the largest acquisition in Israel's history, Google’s acquisition of Wiz for a reported $32B.”
