Startup Nation Central report reveals although cyber firms make up just 7% of local tech scene, they drew 38% of investments this year, with US backing nearly doubling
A new report from Startup Nation Central, a non-profit promoting Israel’s hi-tech industry, revealed that 40% of all large-scale U.S. cyber investment rounds are directed toward Israeli cyber companies. The report highlights the importance of the Cyber industry to Israel’s economy.
Although cyber companies make up only 7% of the local hi-tech industry, they have attracted 38% of investments in 2024.
Investments in cyber firms nearly doubled last year compared to 2023. However, while American investments have increased, those in Europe and Asia have declined.
The report includes over 500 active companies developing next-generation solutions across a wide range of cybersecurity domains, including AI system security, cloud protection, secure enterprise browsers, and information risk management.
SNC officials say the data reflect sustained investor trust in Israel’s unique innovation model, “Cybersecurity is more important than ever as digital threats grow and technologies like cloud computing and AI evolve,” CEO Avi Hasson said. “The more digital the world becomes, the greater the dependency on securing information infrastructure. These trends create massive demand for cutting-edge solutions — and Israel, with its proven innovation capacity, is well-positioned to lead the future of global cybersecurity.”
According to the report, some 60% of Israeli cyber companies are in early stages, but the sector also demonstrates exceptional scalability: 16% of cyber firms are in the growth stage, compared to only 7% in other high-tech segments.
Workforce data further highlights the sector’s maturity. One in five cyber companies employs between 51 and 200 people, and 11% employ over 200, significantly higher than the 12% and 5%, respectively, seen in the rest of the tech industry.
These numbers, SNC says, speak not just to the resilience of Israeli cyber innovation but to its increasing relevance as digital threats grow more complex and urgent on the global stage.
The report, based on data from SNC’s Finder business intelligence platform, shows a significant uptick in deal volume, scalability, and company maturity, painting a picture of a sector that continues to expand its global footprint.
As reported by Ynetnews