Israel’s cybersecurity industry closed 2025 with extraordinary momentum, posting record fundraising totals and an unprecedented surge in exit value, according to new data released by Cybertech Global and IVC ahead of the Cybertech Global Tel Aviv 2026 conference, which opens Monday at Expo Tel Aviv.
The report found that the sector had a total exit value of approximately $72.6 billion, including deals signed but not yet completed, an increase of more than 1,500 percent compared to 2024. Capital raising also hit an all‑time high, climbing to $8.27 billion, an increase of nearly 110% compared to the previous year when funding amounted to $3.96 and surpassing the previous record set in 2021 of $7.5 billion.
Growing sector
Cybersecurity continues to anchor Israel’s high‑tech economy, and according to the report, even as the number of deals remained almost unchanged the average deal size doubled to roughly $60 million.
Early‑stage investment tightened, with seed rounds declining from 71 to 63, while Series A and B rounds expanded significantly. Series A activity rose by nearly a third, and the capital invested in those rounds more than doubled. Series B rounds grew even more sharply, both in number and in total investment. Later‑stage rounds dominated the landscape, accounting for more than $5.4 billion.
Series C rounds meanwhile saw a sharp decline, with only three deals in 2025 compared to seven in the previous year. The number of deals in later rounds remained relatively stable, with 13 deals in 2025 versus 16 the previous year.
The spike in exit value was driven largely by three mega‑deals by Wiz, CyberArk, and Armis which were all signed in 2025 but not yet completed. Without those transactions, total exit value would have fallen to around $2 billion, slightly below 2024 levels. Even so, the number of exits excluding the three major deals rose from 27 to 32, indicating steady acquisition activity across the sector.
And Israel’s cybersecurity ecosystem continues to grow, with 597 active companies now operating, up from 546 the previous year. While most remain small, with up to 20 employees, another 185 are mid‑sized and 90 others employ more than 100 people. The sector remains overwhelmingly software‑driven, with nearly 93 percent of companies focused on software (92.8%) or enterprise infrastructure solutions, while hardware and semiconductor ventures remain marginal.
Cybertech founder Amir Rapaport said the numbers reflect a sector that continues to defy expectations.
“Israeli cybersecurity is showing that the sky is the limit. Amounts that until recently were considered imaginary have shattered the glass ceiling and set a new standard for exits and capital raising. Israeli cyber continues to attract the majority of foreign investment in Israel, even in times of war, and remains the true engine of the high-tech sector,” he said. “This strength will continue to foster leading cybersecurity technology here in the years to come.
Cybertech 2026
Cybertech Global Tel Aviv 2026, held in cooperation with the National Cyber Directorate, several government ministries, the Tel Aviv–Yafo Municipality, and Ben‑Gurion University of the Negev, is expected to draw thousands of participants from Israel and abroad.
The event will cover the intersection of AI and cyber defense, quantum technologies, cloud security, healthcare innovation, national and international cyber strategy, cyber entrepreneurship, and much more. Among the speakers expected to attend include Prime Minister Benjamin Netanyahu, President Isaac Herzog, National Cyber Directorate head Yossi Karadi, NVIDIA Israel managing director Nati Amsterdam, Wiz co‑founder Yinon Costica, captivity survivor and Ben‑Gurion University computer science student Noa Argamani, and E.N.P. Israel chair Esti Peshin.