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The Israeli cybersecurity industry is a rapidly growing sector within Israel's technology and innovation ecosystem. Israel is internationally recognized as a powerhouse in the cybersecurity domain, with numerous cybersecurity startups, established companies, research institutions, and government initiatives. Tel Aviv itself is being ranked 7th in annual list of best global tech ecosystems, as reported by the Jerusalem Post. [1] [2] [3] [4] [5]
The roots of Israel's cybersecurity industry can be traced back to the country's strong focus on national security and intelligence. The establishment of elite military units such as Unit 8200, the Israeli Intelligence Corps unit responsible for signals intelligence and code decryption, played a significant role in the development of cybersecurity expertise in the country. Many former members of Unit 8200 have gone on to establish successful cybersecurity companies or join existing organizations, bringing their unique skill sets and experience to the private sector. [6] [7]
As of 2024 [update] , Israel housed more than 450 cybersecurity startups and companies. In 2023, the value of exits by Israeli tech companies reached $7.5 billion. [8]
Israel's cybersecurity industry is characterized by a high concentration of startups develop new technologies in areas such as network security, endpoint protection, data security, cloud security, and threat intelligence. In recent years, the sector has attracted significant investment from both local and international venture capital firms, as well as major technology companies such as Microsoft, Google, and IBM. [9] [10] [11]
Several Israeli cybersecurity companies have gained global recognition and success, with some being acquired by major corporations or conducting successful initial public offerings (IPOs).
Some key Israeli cybersecurity companies include:
Israel’s cybersecurity sector has seen significant financial activity. As of 2023, mergers and acquisitions in the cybersecurity sector totaled $2.8 billion. [8]
In the first quarter of 2024, the sector secured $846 million in private funding. [8]
The military experience helped much. Israel's mandatory military service, combined with the expertise developed within elite units such as Unit 8200, has fostered a strong talent pool with practical experience in cybersecurity.
Israel's thriving startup ecosystem, often referred to as the "Startup Nation," has fostered an environment of innovation and collaboration that has contributed to the growth of the cybersecurity industry. [12] [13] [14]
Israeli cybersecurity companies often collaborate with international partners, both in the private and public sectors, to share knowledge and develop joint solutions. [15] [16]
The government also supported well through various initiatives, such as the Israel National Cyber Directorate (INCD), which works to strengthen cybersecurity defenses and promote the development of the sector. [17]
Israeli universities and research centers are involved in cybersecurity research and education, contributing to the development of new technologies and training the next generation of cybersecurity professionals. [18] [8]
Academic Tech transfer offices in Israel also facilitate the commercialization of cybersecurity technologies. [8]
Some academic institutions with cybersecurity laboratories include: [8]
Science and technology in Israel is one of the country's most developed sectors. Israel spent 4.3% of its gross domestic product (GDP) on civil research and development in 2015, the highest ratio in the world. In 2019, Israel was ranked the world's fifth most innovative country by the Bloomberg Innovation Index. It ranks thirteenth in the world for scientific output as measured by the number of scientific publications per million citizens. In 2014, Israel's share of scientific articles published worldwide (0.9%) was nine times higher than its share of the global population (0.1%).
High technology, also known as advanced technology or exotechnology, is technology that is at the cutting edge: the highest form of technology available. It can be defined as either the most complex or the newest technology on the market. The opposite of high tech is low technology, referring to simple, often traditional or mechanical technology; for example, a slide rule is a low-tech calculating device. When high tech becomes old, it becomes low tech, for example vacuum tube electronics. Further, high tech is related to the concept of mid-tech, that is a balance between the two opposite extreme qualities of low-tech and high tech. Mid-tech could be understood as an inclusive middle that combines the efficiency and versatility of digital/automated technology with low-tech's potential for autonomy and resilience.
UST, formerly known as UST Global, is a provider of digital technology and transformation, information technology and services, headquartered in Aliso Viejo, California, United States. Stephen Ross founded UST in 1998 in Laguna Hills. The company has offices in the Americas, EMEA, APAC, and India.
Unit 8200 is an Israeli Intelligence Corps unit of the Israel Defense Forces responsible for clandestine operation, collecting signal intelligence (SIGINT) and code decryption, counterintelligence, cyberwarfare, military intelligence, and surveillance. Military publications include references to Unit 8200 as the Central Collection Unit of the Intelligence Corps, and it is sometimes referred to as Israeli SIGINT National Unit (ISNU). It is subordinate to Aman, the military intelligence directorate.
Gil Shwed is an Israeli software engineer and entrepreneur. He is the co-founder and CEO of Check Point Software Technologies Ltd, one of Israel's largest technology companies and the world's largest pure-play cybersecurity company.
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Venture capital in Israel refers to the financial capital provided to early-stage, high-potential, high risk, growth startup companies based in Israel. The country's venture capital industry was born in the mid-1980s and has rapidly developed. Israel currently has more than 276 active venture capital funds, of which 71 are international VCs with Israeli offices. Israel's venture capital and incubator industry plays an important role in the booming high-tech sector that has been given the nickname "Silicon Wadi", considered second in importance only to its Californian counterpart, the Silicon Valley.
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Illusive Networks is a cybersecurity firm headquartered in Tel Aviv, Israel and New York. The company produces technology that stops cyber attackers from moving laterally inside networks by finding and eliminating errant credentials and connections, planting deceptive information about given network's resources, emulating devices, and deploying high interactivity decoys. Network administrators are alerted when cyber attackers use security deceptions in an attempt to exploit the network. Illusive Networks is the first company launched by the Tel Aviv-based incubator, Team8. In June 2015, Illusive Networks received $5 million in Series A funding from Team8. To date, it has raised over $54M.
Keren Elazari, also known as k3r3n3, is an Israeli cybersecurity analyst, writer, and speaker. She is a senior researcher at the Tel Aviv University Interdisciplinary Cyber Research Center.
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Shlomo Kramer, is an Israeli information technology entrepreneur and investor. He is the co-founder of cyber-security companies Check Point and Imperva, as well as Cato Networks, a cloud-based network security provider.
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PlaxidityX is an Israeli automotive cyber security company. It was purchased by Continental AG in 2017, for $430 million. In October 2017, Argus added a solution to enable OEMs to deliver over-the-air vehicle software updates.
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