CYBERSECURITYIsrael’s Cybersecurity Market is Maturing, and Just in Time

By Zachy Hennessey

Published 20 April 2024

As tensions around the world rise and cyber threats multiply like digital rabbits, the Israeli cyber scene’s maturation seems like a saving grace.

Israel’s cyber security industry is fast approaching maturation, and there’s no better time for that to happen. After October 7, followed by Iran’s massive attack on Israel on Saturday, and tensions escalating between nations, the threat of increasingly sophisticated cyberattacks are as serious as they’ve ever been.

Last week’s Cybertech Israel conference provided a microcosm of the industry’s evolution. The show floor — which was, relative to other post-October 7 events in Israel, bustling — was populated by numerous booths and tables, each one populated by another interesting startup promising to offer the greatest cybersecurity solutions that any company, government office or organization could want.

The low-lit exposition hall was filled with light fog, a constant array of dazzling lasers and a general sense of confidence which seemed to communicate one unanimous message: “Hello companies, government offices and organizations — we know you want us.”

That sense of confidence is far from off-base. IVC research data shows that Israeli cyber exits reached $985 million in the initial quarter of 2024, and set a new record in 2023, with exits surpassing $7.1 billion, marking a 65% surge on 2022 and a 22.5% rise on 2021.

The More Swords There Are, the More Shields You Need
“There’s definitely been a lot more demand for cybersecurity lately, thanks to increased cyber instability,” noted a representative from Sikreta, a startup dedicated to performing thorough penetration testing for its users.

The company has been approached by an increasing number of clients who want to make sure that their networks can’t be broken into, and they’re willing to pay to make sure of it.

“There’s been a lot more phishing and website hacks — mostly Iranian,” Sikreta’s rep noted.

Indeed, this claim is backed by a recent report from cybersecurity sector leader Check Point. According to the company, there has been a doubling of cyberattacks from Iran against Israel in the past week alone. These attacks, exceeding 4,000 in number, targeted a range of entities including local authorities and academic institutions.

While the Islamic Republic’s bombardment on April 14 accomplished very little in terms of damage in Israel, their continued pressure on Israel’s cyber defenses is nothing to sneeze at.