There are 436 cybersecurity companies operating in Israel today at various stages of development a new report by IVC Research Center, which tracks Israel’s tech industry, shows.
From 2013 to the end of 2019, cybersecurity exits — the number of merger and acquisition deals and initial public offerings of shares — totaled $11.3 billion, the data shows. Whereas in 2013 there were just three exits, totaling $747 million, in 2019 there were 23 exits totaling $3.46 billion — a record for the 2013-2019 period.
In the same period, Israeli cybersecurity firms raised $6.32 billion from investors in 594 deals, IVC said. In 2013, cybersecurity firms raised $240 million in 52 deals, and in 2019 firms raised $1.88 billion in 75 deals, indicating that the funding rounds were bigger that year. The dollar amount raised is the highest for the 2013-2019 period.
Out of the 400 cybersecurity startups that were set up between 2013-2019, 23% of the firms stopped their activities, the figures showed. Just 12 new cybersecurity firms were set up in 2019, compared to 54 in 2013, and 86 in 2015, which was a record high for the period.
The data was published ahead of the Cybertech 2020 conference that will take place in Tel Aviv at the end of the month, where Prime Minister Benjamin Netanyahu is scheduled to address the audience. Hundreds of companies from Israel and abroad as well as government officials will take part in the conference, which will also see a record number of delegations attending from the US, India, Germany, Spain, the UK and Japan, among others, the organizers of the conference said in a statement.
Intelligence gathering, the effect of the cyber-sphere on election cycles, international investigations into cybercrime and how to prepare for large-scale hacks will be among the topics addressed by the speakers at the event. In addition, a cyber incident will be acted out in a flight simulation that will be figured out by technicians and decision makers. Cybercrime in the financial, communications and medical sectors will also be addressed.
Alongside the conference, there will be an exhibition of companies and organizations, including Israel’s Mossad intelligence agency, the Israel Police, Check Point Software Technologies, CyberArk, IBM, Microsoft, FireEye and Elbit Systems. There will also be a pavilion of exhibitors from India, China and Ontario, Canada, the statement said.