Israel’s cybersecurity startups post another record year in 2021

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Israel, Jerusalem national official state flag in a computer technological world

Over the past decade, the Israeli cybersecurity industry has secured its place as a formidable wellspring of technological innovation. No longer famous only for its high level of human technological capital born and bred in elite army intelligence units, the Israeli industry has matured into a veritable ecosystem of its own. With enough capital in this booming ecosystem to grow massive category leaders and cultivate internal M&A, Israeli startups are now major players in the global cybersecurity industry.

In last year’s recap of the Israeli cybersecurity ecosystem, we anticipated that the record-breaking rounds of 2020 and marked-up valuations would continue in 2021, but upon collecting and assessing this past year’s data, we were taken aback by the magnitude. Israeli cybersecurity startups in 2021 raised a stunning $8.84 billion, more than triple the amount in 2020 ($2.75 billion). Investments last year were distributed across 135 rounds, up from 109 in 2020, with 15 startups raising more than one funding round last year.

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