Israel’s cybersecurity sector booms with $8.27b funding, $72.6b exits in 2025
Israel’s cybersecurity sector booms with $8.27b funding, $72.6b exits in 2025
Publish Date: 2026-01-26 01:35:00
Source Domain: allisrael.com
Israel’s cybersecurity sector wrapped up 2025 on an historic high, recording unprecedented fundraising levels and a dramatic spike in exit values, according to new figures released by Cybertech Global and IVC ahead of the Cybertech Global Tel Aviv 2026 conference, which opens Monday at Expo Tel Aviv.
According to The Jerusalem Post, the report shows total exit value reached approximately $72.6 billion – including transactions signed but not yet finalized – marking an increase of more than 1,500% from 2024. Fundraising also surged to a record $8.27 billion, nearly doubling year-on-year from $3.96 billion in 2024 and surpassing the previous peak of $7.5 billion set in 2021.
The report underscores cybersecurity’s central role in Israel’s tech economy, showing that despite little change in deal volume, average deal size climbed sharply, doubling to roughly $60 million.
It was revealed that early-stage investment has tightened, with seed rounds declining from 71 to 63. At the same time, funding shifted toward more mature companies, as Series A and B rounds expanded significantly.
Series A activity rose by nearly one third, and the capital invested in those rounds more than doubled. Growth was even stronger at the Series B level, which saw sharp increases in both the number of deals and total investment.
Later-stage rounds came to dominate the market, accounting for more than $5.4 billion in funding.
While Series C rounds dropped steeply – falling to three deals from seven the year before – activity in later-stage rounds remained broadly stable, with 13 deals in 2025 versus 16 in 2024.
The report showed that most of the jump in exit value can be traced to three outsized transactions by Wiz, CyberArk, and Armis, signed in 2025 and still pending completion. Stripped of those deals, exits would have totaled about $2 billion – just under last year’s figure. However, the underlying…
