Despite the ongoing war with Hamas, Israel's cybersecurity industry is defying the downward trend in the tech sector. The surge in hacking attacks and threats from Iran and Hezbollah has led to a boost in the cybersecurity sector. Find out how Israel's cyber companies are attracting investments and attention from global players.
Israel's Cybersecurity Industry Thrives Despite Ongoing Conflict
( Credit to: Timesofisrael )
Israel's cybersecurity industry is defying the downward trend in the tech sector, despite the ongoing war with the Hamas terror group. The surge in hacking attacks and threats from Iran and Hezbollah has led to a boost in the cybersecurity sector.
( Credit to: Timesofisrael )
Despite the ongoing war, the cybersecurity sector in Israel remains resilient and continues to attract investments and attention from global players.
Mergers and Acquisitions Drive Growth in Israel's Cybersecurity Sector
( Credit to: Timesofisrael )
In the first three months of 2024, mergers and acquisitions in Israel's cyber sector generated $985 million across eight deals. Additionally, local cyber startups received $620 million in capital from investors during the same period, accounting for 38% of the total funding raised by the tech sector.
Last year, amidst political uncertainty and the outbreak of the war in Gaza, Israeli cyber deals reached a record high of $7.1 billion, out of a total of $10 billion in the local tech industry.
The trend of increased mergers and acquisitions in the Israeli cyber sector, which began last year, continues into 2024 as global cyber threats continue to grow. Geopolitical tensions have increased interest and investment in cyber companies. As a result, more investments in Israeli cyber companies and new startups addressing emerging threats are expected.
Challenges Faced by Israeli Tech Startups in Fundraising
Despite the positive trend in the cybersecurity industry, fundraising by Israeli tech startups and companies declined by 56% in 2023 compared to the previous year. Political uncertainty and the war with Hamas have made it challenging for local startups to attract essential funding, particularly from foreign investors. Major deals are also expected to be delayed.
Before and during the war, many Israeli-founded cybersecurity startups were acquired by global tech companies and local players. The number of cyberattacks experienced by Israel during this period was 2.5 times higher than in previous years, with a total of 3,380 incidents recorded. Some of these attacks were categorized as having significant potential for damage.
Resilience of Israel's Cybersecurity Sector Amidst Ongoing Conflict
Amidst the war, attacker groups originating from Iran and Hezbollah were identified. Cyber assaults targeted hospitals and aimed to undermine the war effort and gather intelligence. Despite these challenges, Israel is hosting its 10th cybersecurity conference in Tel Aviv this week. The conference will bring together delegations from 60 countries, company and government representatives, as well as cybersecurity experts and hackers.
Israel's cybersecurity industry consists of 522 startups and firms, including early-stage startups, research and development firms, and growth-stage firms generating revenues of $10 million or more.
