CTalkHow will the defensetech exit landscape evolve in the future?
CTalk
How will the defensetech exit landscape evolve in the future?
Dorin Baniel, Leading Investments in the Region at NightDragon, spoke to CTech about the relatively new sector and how it needs to play catch-up with veteran ecosystems with reputable exits.
Dorin Beniel
(Credit: Streame)
“Defencetech has been a top headline lately. We have a lot of incredible innovation happening here and we're going to see even more,” said Dorin Baniel, Leading Investments in the Region at NightDragon. “That's what I believe and I think everyone is seeing that in 2025.”
NightDragon is a US-based VC headed by Dave DeWalt with 19 full-time employees. The firm is focused on growth stages but has exceptions for more early growth in Israel due to its younger ecosystem. It typically looks a sectors relating to cybersecurity, defensetech, dual-use, safety, and privacy.
“As you know, we have one of the biggest testing grounds for these technologies,” she continued. “Our soldiers are every single day using this technology, innovating, understanding what other problems there are to solve. And so the defensetech venture landscape is only going to evolve and increase. Frankly, I have a feeling that it's like how cyber was in 2018 and 2019 when cyber was just taking off and it became a very attractive focus area for venture capitalists to see high returns. I think that's what's happening in defense.”
Baniel also highlighted a new report she recently authored examining the Israeli cyber exits landscape. It digs deep into information on the average Israeli cyber exit size and periods, which Baniel expects to release soon in the form of a SaaS platform.
“We still don't know who the repeatable acquirers are going to be,” she explained, referring to the newer sector of defensetech. “We have a Check Point, a CrowdStrike, and a Palo Alto that are the top acquirers for cyber - we don't yet have that in defense. That's the real question for a lot of VCs. I think we're going to see companies like Lockheed and those more traditional or bigger system integrators becoming some of the buyers as well.”
You can learn more about the growing defensetech sector in the video above.
