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New Report: 130 Israeli Cyber Startups Funded in 2025, as Global Capital Surpasses Domestic Investment for the First Time

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GOOGL Mentioned as acquiring Wiz, a cybersecurity company. The article focuses on Israeli startups, and Google's acquisition is presented as a validation of the Israeli sector's strength rather than a direct commentary on Google's performance. CYBR Mentioned as being acquired by Palo Alto Networks. This is presented as a high-profile exit and a validation of the strength and maturity of the Israeli cybersecurity sector, indicating positive growth and success for CyberArk. PANW Mentioned as acquiring CyberArk, a cybersecurity company. The article focuses on Israeli startups, and Palo Alto Networks' acquisition is presented as a validation of the Israeli sector's strength rather than a direct commentary on Palo Alto Networks' performance.

YL Ventures' State of the Cyber Nation Report reveals multiple fundamental shifts as early stage funding surges and Israeli companies further assert dominance

SAN FRANCISCO and TEL AVIV, Israel, Dec. 8, 2025 /PRNewswire/ -- Global venture capital firm YL Ventures' 10th annual State of the Cyber Nation Report reveals that 2025 marks the first time global VCs both outpaced Israeli funds at every stage and became the leading source of seed capital for Israeli cybersecurity companies. The sector saw 130 total funding rounds spanning all stages, totaling $4.4 billion.

The report also highlights several additional fundamental shifts in the ecosystem, including a surge in seed and early-stage activity reflecting a new generation of founders focused on building category-defining companies rather than pursuing quick exits. An indication of increased ecosystem maturity, 2025 also saw the most ever acquisitions of Israeli companies by other Israeli companies, with numerous scale-ups acquiring early-stage startups.

"This year's data tells a compelling story of maturation and ambition," said Or Salom, Analyst at YL Ventures, who authored the report. "Israeli cybersecurity entrepreneurs are no longer just building great technology; the Israeli cybersecurity ecosystem is consistently producing category leading companies at global scale."

Marking its tenth year, the report also covers a decade of growth in the Israeli cybersecurity industry, which saw a surge of over 500% in total funding over the period.

Key Findings from the YL Ventures' 2025 State of the Cyber Nation Report:

Global Investment Leadership

Record Early-Stage Activity

Homegrown Consolidation

Mega-Rounds Drive Growth

Hot Investment Categories

2015-2025: A Decade of Comprehensive Analysis

The report also highlights several high-profile exits, including Wiz's acquisition by Google and CyberArk's acquisition by Palo Alto Networks, further validating the strength and maturity of the Israeli cybersecurity sector.

"After a decade of analysing every funding round and exit in this ecosystem, the trajectory in 2025 is unmistakable," added Yoav Leitersdorf, Managing Partner at YL Ventures. "Israeli cybersecurity now operates at a scale, pace and level of consistency that surpasses anything we've seen. The question is no longer how much Israeli cybersecurity companies can scale, but rather how fast."

The full YL Ventures State of the Cyber Nation 2025 report, including all data updated through the end of the year, will be published on January 7, 2026.

To see key findings and register to get the full report when it goes live, visit: stateofcybernation.ylventures.com

About YL Ventures

YL Ventures is a venture capital firm dedicated exclusively to cybersecurity. For nearly two decades, the firm has partnered with top Israeli founders from inception, helping build category-leading companies that define the market. With offices in Silicon Valley and Tel Aviv and $800M under management, YL Ventures provides access to an unrivaled network of CISOs and industry leaders, shaping the next generation of Israeli cybersecurity innovation. Repeatedly recognized by PitchBook and TIME magazine for both performance and influence, YL Ventures stands at the forefront of cybersecurity venture capital.

Learn more at www.ylventures.com

Media Contact

Zack Rothbart, Concrete Media

[email protected]

SOURCE YL Ventures