Israeli cyber attracted investments in a record sum of $ 1.5 billion during the first Q of 2021


by Ifi Reporter Category:Hitech Apr 5, 2021

The Israeli cyber industry has always been a focus of interest for foreign eyes, and in the first three months of the year it also attracted the eyes of investors, who invested a record $ 1.5 billion in 17 fundraisers by Israeli start-ups in the field during the first quarter of 2021.
The amount raised is 137.7% compared to the investments made by Israeli companies in the field in the first quarter of 2020, when they stood at $ 631 million, and 455.5% more than in the first quarter of 2019, when $ 270 million was invested in them. This is according to data from the research company IVC, which analyzes the high-tech industry in Israel.

This is a continuation of a trend that the field began to experience in 2020, which the Israeli cyber companies concluded with a record fundraising of $ 2.9 billion, which accounted for 31% of all cyber investments in the world.
In Israel, 50% of the 22 unicorns are private companies that have reached a value of over $ 1 billion in global cyber, and one of them is Orca Security, which raised $ 210 million last March at a value of $ 1.2 billion, just two years since its establishment in 2019. .
Gil Garon, one of the founders of Orca Security, said that "a value of $ 1 billion or more for companies in the field is often found to be underestimated. The cloud security market in which we operate, for example, will roll in about $ 11 billion within three years, and many Israeli companies come The growing number of business and financial corporations, and even countries, foreign investors understand this, comes in the form of various international funds, which in the last two years have set themselves an investment target in Israeli cyber, and some have even increased investment activity, such as GGV Capital or ICONIQ. "More than other areas in the Israeli technology sector, and this contributes to the navigation of investments in the field."
The Israeli reputation may be eye-catching, but it was the Corona that accelerated the need for cyber defenses and the accompanying sales. "The intensive investments we are seeing are a direct result of the damage and risks the world is experiencing in Corona," said Pavel Gurevitch, CEO of the cyber Guardicore company, one of whose investors is Prime Minister and former Defense Minister Ehud Barak.
Gurevitch added, "This was a time when ransom demands were higher than ever, and an example of this can be found at a cost of $ 50 million, which the computer maker Acer was asked to pay in ransom demand. Corona disruptions also accelerated Israeli cyber sales, which are now mostly zoomed. And almost without the need for the huge sales teams that the companies have had in the past. "
Kobi Samborsky, founder and co-director of the Glilot Capital Fund, added that "Israeli companies have matured. If in the past they were mainly waiting for an exit, today they want to be the largest company in the field, and investors are willing to go with them. There is more money looking for investments in the fields of technology in general and in cyber in particular. "
Glilot Capital Fund manages about $ 500 million in various venture capital funds, and has been investing in Israeli cyber since it was founded by Kobi Samborsky and Arik Kleinstein in 2011. Samborsky and Kleinstein are managing partners in the fund, along with Nofar Amikam and Lior Litvak, who joined them after its establishment.



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