The latest State of the Cyber Nation Report by YL Ventures showed that Israel's cybersecurity sector secured $4 billion in 2024, more than double the $1.89 billion that cyber firms raised in 2023, according to Reuters.
The surge was attributed to increased investment in cloud security and artificial intelligence, alongside broader global interest in Israeli startups. The report highlighted 89 funding rounds, with 50 focused on seed or early-stage startups, which collectively raised $400 million. Growth-stage rounds saw significant expansion, raising $2.9 billion -- an increase of over 300% from $888 million in 2023.
YL Ventures emphasized Israel's elite military intelligence units as key to fostering an entrepreneurial and hands-on approach to cybersecurity innovation. However, the geopolitical impact of the October 2023 war, which mobilized many in the tech sector for military service, posed challenges to operational continuity. Founders had to navigate these disruptions while maintaining business stability amid economic uncertainty. The report forecasts sustained growth in 2025, underpinned by increased venture capital engagement and the global prominence of Israeli cybersecurity startups.
