THANK YOU FOR SUBSCRIBING
The Israeli cybersecurity market continues to draw investors' confidence, who appear to realize its heightened necessity during times of crisis.
FREMONT, CA: The beginning of a new year presents the perfect opportunity to reflect on Israel’s cybersecurity landscape's annual performance and prepare for what the coming years of innovation will bring. With the cybersecurity market outperforming this year’s pandemic-stricken expectations, here is how Israel’s market functions with it, its strongest performer, compared—and predict what it has in store.
The cybernation remained strong throughout the pandemic and saw a rise in fundraising, particularly around the application and cloud security, following the evolution of remote workflow security gaps brought on by social distancing. Encouraged by this, investors have illustrated committed enthusiasm to its growth. Emboldened by the industry’s overall strength and novel opportunities, today’s Israeli visionaries build stronger convictions to build larger firms; many of them, already successful entrepreneurs, are making their bets in the sector as serial entrepreneurs and angel investors.
Investors are concentrating their funds on larger seed rounds for serial entrepreneurs and the foremost trends. More than $2.75 billion was invested in the industry this year to back firms across all stages, a 97 percent increase from last year’s $1.39 billion. However, though they indicate progress, the numbers still make the requirement for a demographic reset clear. Like the rest of the sector, Israel’s cybersecurity landscape must keep pace with the changeset out by this year’s social movements, and the time has long passed for true diversity and gender representation in cybersecurity leadership.
As the market’s leading leaders garner experience and expertise, the bar for entry to Israel’s cybersecurity startup arena has gradually risen over the years. However, this did not appear to affect this year’s entrepreneurial breakthroughs. Fifty-eight percent of Israel’s newly founded cybersecurity firms received seed rounds this year, totaling 64 seeded companies in 2020 compared with last year’s 61. The total number of newly founded enterprises increased by 5 percent, reversing last year’s downward trend. This continues an upward trend in seed rounds, which have increased over the last four years due to sizable year-on-year scales.