Israeli Cyber Industry Breaks Records with $72.6B in Exits

The Israeli cybersecurity industry has wrapped up an exceptional year with unprecedented figures: total exit value in 2025 reached approximately $72.6 billion, including signed but not yet completed deals, marking a surge of more than 1,500% compared to 2024. At the same time, capital raised by Israeli cyber companies hit an all-time high of $8.27 billion. The data was released ahead of Cybertech Global Tel Aviv 2026, opening tomorrow (January 26–28) at Expo Tel Aviv.

The figures are published as part of a joint report by Cybertech Global and IVC, providing an up-to-date snapshot of Israel’s cybersecurity market, which continues to lead the local high-tech sector despite ongoing geopolitical and economic uncertainty.

According to the report, fundraising by Israeli cybersecurity companies in 2025 nearly doubled compared to the previous year, when total funding stood at approximately $3.96 billion. This represents a new record, surpassing even the previous peak year of 2021. In parallel, the average investment per deal climbed to around $60 million, double the 2024 average, while the total number of deals remained largely unchanged.

The data points to a clear trend of capital concentration. Seed-stage activity declined, while both the number and size of Series A and Series B rounds increased significantly. Series A rounds saw roughly a 32% rise in the number of deals, with invested capital more than doubling year over year. Series B rounds also recorded substantial growth, reflecting the increasing maturity of companies advancing beyond early stages.

Exit activity in 2025 was dominated by three mega-deals involving Wiz, CyberArk, and Armis, which have been signed but not yet completed. Excluding these transactions, total exit value declined to approximately $2 billion, although the number of exits increased, indicating sustained deal activity beyond the headline transactions.

As of today, Israel is home to 597 active cybersecurity companies, up from 546 a year earlier. Most are small, early-stage companies, and the vast majority focus on software and enterprise infrastructure solutions, underscoring the software-centric nature of the Israeli cyber ecosystem.

Cybertech founder Amir Rapaport commented that Israeli cybersecurity continues to redefine the market’s limits: “Amounts that until recently were considered imaginary have become the new standard. Even in times of war, Israeli cyber attracts the majority of foreign investment and remains the true engine of the high-tech sector.”

Amir Rapaport, Cybertech founder. Photo: Cybertech

Cybertech Global Tel Aviv 2026 is expected to host thousands of participants from Israel and abroad, including delegations from around 50 countries, senior executives from the global cybersecurity industry, leading investors, researchers, and key opinion leaders. Alongside the main plenary, the event will feature a large-scale exhibition showcasing international companies and innovative Israeli startups, as well as discussions and panels covering AI and cybersecurity, cloud security, quantum technologies, infrastructure protection, global collaboration, and emerging cyber threats.