Israel’s cybersecurity sector is showing surprising resilience and growth at a time when much of the global tech industry faces tighter capital and intensifying geopolitical risk.
Israel’s cyber cluster may account for just 7% of its broader tech industry by company count, but it drew 38% of all tech investment in 2024. The sector’s long-term expansion has also outpaced the rest of the startup economy: the number of active cyber firms grew by 86% over the past decade, compared with 36% growth for Israeli tech overall.
The report highlights more than 500 companies developing technologies ranging from AI-powered threat detection to cloud protection, secure enterprise browsers and industrial system safeguards. Despite the sheer number of early-stage companies, about 60% of the total, the ecosystem appears to scale faster than other parts of Israel’s tech scene. About 16% of Israeli cybersecurity firms are now classified as growth-stage, more than double the rate in other tech segments.
Merger and acquisition activity remains the main path to maturity. Eleven percent of Israeli cyber startups are acquired, compared to just one percent that reach an IPO, a sharp contrast with other sectors where the public route is four times more common.
According to the report, Israel remains a global leader across nearly every cybersecurity segment, from cloud to industrial systems, thanks to a strong pipeline of startups and a highly skilled workforce.
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Application & Website Security: Companies like Snyk, Island, and Salt Security help secure software and APIs against threats and vulnerabilities.
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Cloud Security: Leading players Wiz, Orca Security, and Aqua Security protect data and infrastructure in the cloud.
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Data Security: Startups like Cyera, Deep Instinct, and BigID focus on encryption, privacy, and breach prevention.
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Endpoint Security: Firms including SentinelOne, Cybereason, and Kape Technologies safeguard devices and IoT endpoints.
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GRC & Vulnerability: Companies such as Riskified, Pentera, and CyCognito help organizations manage risk and close security gaps.
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Identity Security: Global leaders Transmit Security, CyberArk, and Forter defend credentials and access systems.
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Industrial Security: Innovators like Claroty, Upstream Security, and Cylus protect critical infrastructure and connected fleets.
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Network & Infrastructure Security: Check Point, Cato Networks, and Armis develop cutting-edge tools for network and asset protection.
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Security Intelligence: Firms like Voyager Labs, KELA, and Toka provide threat intelligence and analysis.
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Security Operations: Companies such as torq, CYE, and Hunters strengthen organizations’ detection and response capabilities.
“Cybersecurity is one of the most critical sectors in global tech, driven by escalating threats and the rise of AI and cloud technologies,” said Avi Hasson, CEO of Startup Nation Central. “As digital systems increasingly underpin how we live, work, and govern, the demand for resilient cyber solutions will only intensify. Israel is uniquely positioned to lead this transformation.”
The report attributes the country’s enduring strength in cybersecurity to its deep bench of military-trained engineers and an innovation model that prioritizes global markets from day one. The findings also spotlight an emerging frontier in AI security: startups like Zenity, Aim Security and Prompt Security are racing to protect AI infrastructure and mitigate risks from generative AI and autonomous agents.
