(MENAFN- GlobeNewsWire - Nasdaq) YL Ventures' State of the cyber Nation 2024 report shows unprecedented growth and global confidence in Israeli innovation
SAN FRANCISCO and TEL AVIV, Israel, Jan. 07, 2025 (GLOBE NEWSWIRE) -- YL Ventures , the global venture capital firm specializing in early-stage investing in Israeli cybersecurity startups, has released its comprehensive annual State of the Cyber Nation Report 2024 . This year's analysis reveals exceptional resilience and growth in the Israeli cybersecurity industry, with total investments reaching $4B across 89 funding rounds-more than double the $1.89B raised in 2023. This dramatic increase in funding highlights the continued global confidence in Israeli cybersecurity innovation and talent.
Each year YL Ventures monitors, analyzes and publishes data on funding and acquisitions in the Israeli cybersecurity market, with insights from industry luminaries to illuminate the trends and shifts in this fiercely competitive industry. This data is aggregated throughout the year and is analyzed according to category, funding round, type of investor, founder experience and other specific characteristics.
Key 2024 Highlights:
Record-breaking seed activity: 50 seed rounds in 2024 with total seed funding reaching $400M, demonstrating sustained confidence in early-stage Israeli cybersecurity innovation Explosive growth stage performance: 16 Series C+ rounds in 2024 (up from 7 in 2023) raised a total of $2.9B, representing a 300% increase from 2023's $888M Increased global VC interest: Top-tier venture capital firms doubled down on the Israeli ecosystem, with seed investments by global VCs in Israeli cybersecurity startups increasing from 10 rounds in 2023 to 22 in 2024 Homegrown leadership: 5 Israeli cybersecurity startups acquired other young Israeli startups, showcasing the ecosystem's maturation and strategic consolidation
"These funding numbers tell a powerful story about Israeli cyber resilience," says Or Salom, Analyst at YL Ventures. "What we're seeing isn't just a rebound, it's a validation of how our ecosystem has evolved. Israeli founders have always been technical powerhouses, but now they combine that with business acumen."
The industry saw particular growth in several key areas:
Cloud Security: 15 funding rounds in 2024, more than doubling from 6 in 2023 Identity and Access Management: Led with 16 funding rounds, up from 9 in 2023 AI Security: Continued evolution beyond enabling the secure use of GenAI technology to leveraging AI to transform traditional security domains
The emergence of homegrown consolidation and the shift toward building sustainable, long-term cybersecurity category leaders signals a maturing ecosystem. "The changes we're observing in 2024-global VCs investing earlier in companies, an opening up of the seed and growth round markets and more acquisitions, especially by Israeli companies-signal a rising tide for 2025," says Andy Ellis, Partner at YL Ventures and veteran CISO. "While the floodgates aren't going to crash open, expect to see more activity across the board: A and B rounds should become more accessible, C and later rounds larger and an increase in seed rounds."
Despite continued geopolitical instability, YL Ventures foresees the Israeli cybersecurity industry's influence expanding from a hotbed of exceptional security solutions to widespread recognition of Israeli cybersecurity startups as dominant global market leaders.
About YL Ventures
YL Ventures funds and supports visionary cybersecurity entrepreneurs from seed to scale to help them evolve transformative ideas into market-leading companies. The firm accelerates company growth with tailored support through its powerful network of Chief Information Security Officers, global industry leaders and a dedicated team of multidisciplinary experts. Based in Silicon Valley, New York and Tel Aviv, YL Ventures manages five funds with $800M in total AUM. The firm has a track record of seeding cybersecurity unicorns such as Axonius and Orca Security, and its portfolio companies have been successfully acquired by high-profile, global industry leaders including Palo Alto Networks, Microsoft, Okta and Proofpoint. PitchBook has ranked YL Ventures as one of the ten best-performing venture capital firms for two consecutive years (2022, 2023) in its prestigious Global Manager Performance Score League Tables, and the firm is the only cybersecurity-focused VC to secure a Top 10 spot on the list. Learn more at
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