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Israel’s maturing cybersecurity startup ecosystem

It often feels like half of the new security startups that receive funding are from Israel. As YL Ventures’ Yoav Leitersdorf and Ofer Schreiber wrote last month, investments in Israeli cybersecurity startups increased to $1.4 billion last year, with average seed rounds of $4.7 million, up 30.5% from 2018.

I spent some time on the ground at CyberTech Global in Tel Aviv a few weeks ago, and the energy in the nation’s security ecosystem was palpable. But this is also an ecosystem that has changed a bit over the last few years as its first wave of startups have been acquired, gone public or shut down. Now, these entrepreneurs are coming back for their second acts, which creates a different dynamic.

There are a lot of reasons why Israel excels in cybersecurity, but one of them is undoubtedly its talent pool, which is fed by intelligence units like 8200 and 81. Indeed, it’s exceedingly unusual to come across security startup founders in the country who did not receive their initial training in the intelligence services. This experience also gives these founders a network of potential co-founders and employees right from the get-go.

It’s worth noting, though, that while more than half of the workforce at Unit 8200 is female, that number does not translate to the same number of cybersecurity founders in the country, though that is slowly changing.

For a long time, Israeli startups had a bit of a reputation for selling early instead of trying to build a massive company. That’s changing a bit now, in large part because the founders themselves may have already sold their first company and aren’t looking for that life-changing sale anymore — and because they now have the experience that gives them the confidence to build larger companies.

Source: Startups – TechCrunch

Posted on

Israel’s maturing cybersecurity startup ecosystem

It often feels like half of the new security startups that receive funding are from Israel. As YL Ventures’ Yoav Leitersdorf and Ofer Schreiber wrote last month, investments in Israeli cybersecurity startups increased to $1.4 billion last year, with average seed rounds of $4.7 million, up 30.5% from 2018.

I spent some time on the ground at CyberTech Global in Tel Aviv a few weeks ago, and the energy in the nation’s security ecosystem was palpable. But this is also an ecosystem that has changed a bit over the last few years as its first wave of startups have been acquired, gone public or shut down. Now, these entrepreneurs are coming back for their second acts, which creates a different dynamic.

There are a lot of reasons why Israel excels in cybersecurity, but one of them is undoubtedly its talent pool, which is fed by intelligence units like 8200 and 81. Indeed, it’s exceedingly unusual to come across security startup founders in the country who did not receive their initial training in the intelligence services. This experience also gives these founders a network of potential co-founders and employees right from the get-go.

It’s worth noting, though, that while more than half of the workforce at Unit 8200 is female, that number does not translate to the same number of cybersecurity founders in the country, though that is slowly changing.

For a long time, Israeli startups had a bit of a reputation for selling early instead of trying to build a massive company. That’s changing a bit now, in large part because the founders themselves may have already sold their first company and aren’t looking for that life-changing sale anymore — and because they now have the experience that gives them the confidence to build larger companies.

Source: Startups – TechCrunch

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Israel’s cybersecurity startup scene spawned new entrants in 2019

As the global cybersecurity market becomes increasingly crowded, the Start Up Nation remains a bulwark of innovation and opportunity generation for investors and global cyber companies alike. It achieved this chiefly in 2019 by adapting to the industry’s competitive developments and pushing forward its most accomplished entrepreneurs in larger numbers to meet them.

New data illustrates how Israeli entrepreneurs have seized on the country’s reputation for building radically cutting-edge technologies as the number of new Israeli cybersecurity startups addressing nascent sectors eclipses its more traditional counterparts. Moreover, related findings highlight how cybersecurity companies looking to expand beyond their traditional offerings are entering Israel’s cybersecurity ecosystem in larger numbers through highly strategic acquisitions.

Broadly, new findings also reveal the Israeli cybersecurity market’s overall coming of age, seasoned entrepreneurial dominance and greater appetite for longer-term visions and strategies — the latter of which received record-breaking investor backing in 2019.

Breaking records

Source: TechCrunch