Israeli cyber firms raised more money than ever in 2017

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The Israeli cybersecurity sector raised record-breaking 814.5 million US dollars from investors, second to the United States, according to the 2017 Cybersecurity Report issued by Israel’s Start-Up Nation Central.

The amount, exceeding 2016 investments by 28 percent, takes some 16 percent of overall cyber investments worldwide.

The past year saw significant new funding going into companies whose products promise to defend industrial infrastructure, connected devices, internet-ready medical devices, and connected automotive systems, said the report.

Trainees work in front of their computers at the "Cyber Gym" center, where IT and infrastructure company employees train to defend against cyber-attacks./VCG Photo

According to the Start-Up Nation Central, there were 420 active cybersecurity companies in Israel by the end of 2017, 70 of which were founded in the past year. Of those 70, one in three was in new areas such as “Internet of Things (IoT).”

"The increasing adoption rate of IoT devices and connectivity capabilities to traditional devices poses new and significant threats to enterprises, nations, and individuals," said Nir Falevich, author of the report. "During 2017, Israeli entrepreneurs and investors put many resources in offering solutions to protect IoT networks and devices," he added.

The report said that the Israeli high-tech industry is becoming more mature.

People pose in front of a display showing the word 'cyber' in binary code./VCG Photo

The share of early-stage investments out of all investments in cybersecurity declined from 77 percent in 2016 to 64 percent in 2017, according to the report. The average size of investment deals increased in 2017, particularly for seed-funding initiatives, reaching 3.6 million US dollars on average, almost twice the size in 2016.

The increase in late-stage investments in 2017 also indicates the increasing maturity of the Israeli cyber industry, as Israeli cybersecurity companies gain more opportunities to grow, become profitable, and position themselves as industry leaders, said the report.

Source(s): Xinhua News Agency