This is a preview of your story

Powered by


The Israeli Cybersecurity Tech Sector​
Q1 2023 Report by Start-Up Nation Central​

An analysis of private and public investments, M&A activity, and IPOs by period and subsectors in the rapidly evolving Cybersecurity landscape.


Summary of Insights

A Guest Commentary by YL Ventures based on data collected by Start-Up Nation Finder.

Assessing the performance of the Q1 2023 cybersecurity investment landscape requires a sobering perspective following the extraordinary peak of 2021 and the stark decline of 2022. While the market’s vacillations have indeed dramatically impacted investor risk appetites, investor interest in cybersecurity innovation this quarter remained high.

The growing sophistication of malicious actors has underlined the importance of prioritizing security as a leading budget item, and this quarter’s data shows that investors are still willing to bet handsomely on groundbreaking technology built by promising startups, and want to see a consolidation of capabilities in one solution that can resolve multiple problems.

Consolidation has also become an operative word on the M&A front. Post-2022, acquisitions have become a potential safety net for startups severely affected by the economic downturn. Some contend with decreased valuations that make it difficult to raise follow-on rounds, others have experienced aggressive growth over the past two years and are now finding their runway significantly diminished, and other startups previously raised capital at high valuations without backing it up with ARR (Annually Recurring Revenue) and real customer traction. Large vendors - determined to expand their offerings before the competition does - happily acquire them.

"If Q1 is any indication, cybersecurity will remain a top-quartile investment sector with hesitant but enthusiastic investors, eager to find the next great cybersecurity solution.”

Ofer Schreiber, Senior Partner, YL Ventures​





Amount of Equity Invested
Q1 2023

Q4 2022


Amount of Exits value

Q1 2023

Q4 2022

* A sample of prominent companies in the subsectors​​

Private Funding in Q1 2023​

Finder's Report Analysis

This report was composed by Yariv Lotan, VP of Digital Products, Development and Data, and Einat Ben-Ari, Head of Data and BI |

Start-Up Nation Central is a non-profit organization that connects Israeli innovation to the world to help international entities solve global challenges. Inspired by the book Start-Up Nation and immersed in the Israeli technology ecosystem, we provide a platform that nurtures business growth and generates partnerships to strengthen Israel’s economy and society.


Methodology Notes​

  • The report is based on the START-UP NATION FINDER database.​

  • It is a snapshot of Q1 2023 activity as of April 16, 2023.​

  • Q1 2023 figures might further revise in the future as the activity in this quarter continues to be revealed. In particular, funding rounds in early-stage startups are usually published with a delay.​

  • The definition for companies and investors can be found in the FINDER Glossary under the terms “Companies” and “Investors”, respectively.​

  • The report includes only companies that their primary sector is classified as Cybersecurity. ​

  • Companies may be classified into multiple Cybersecurity subsectors.​

  • Active Investors are defined as investors with at least 3 investment rounds since 2021.​

  • Investments Types included: Pre Seed, Seed, A, B, C, D, E, F, G Rounds, Convertible Debt, Post-IPO Equity Funding, Private Equity, Undisclosed Round. Excluded: Crowdfunding, Equity Crowdfunding , Debt Financing and Grants.

  • Links are dynamic and provide current snapshots, so the results might not exactly match the figures in the report.

Copyright ​🔽

Copyright ​🔼