The total funding of Israeli cybersecurity companies reached a record $4.4 billion in 2025, according to cybersecurity-focused venture capital firm YL Ventures.
The $4.4 billion raised by Israeli security firms this year — up by 9% from $4.03 billion in 2024 — came from 130 funding rounds, significantly more than the 89 rounds announced last year.
Of the total number of investment rounds, 71 were seed and raised nearly $680 million, 50 were Series A and B and raised roughly $920 million each, and nine were Series C+ rounds and raised approximately $1.9 billion.
Venture capital firms based in the United States led 44 seed rounds, while Israeli VCs led 35. Thirteen seed rounds were co-led by US and Israeli VCs.
Unsurprisingly, seed investment in AI security firms has continued to increase (12 companies compared to 8 in 2024). In addition, endpoint security companies have seen a surge in funding, with 11 rounds in 2025 compared to only one in 2024.
Significant funding rounds were announced this year by companies such as Armis, Cato Networks, Cyera, Dream, and Island. Some of these companies used the new capital for acquisitions.
YL Ventures has been monitoring the Israeli cybersecurity ecosystem for the past 10 years. During this decade, it has seen overall annual funding increasing by more than 500% (from $689 million to $4.4 billion), average seed rounds by over 230% (from $2.9 million to $9.6 million), and the number of rounds by 80% (from 72 to 130).
These and additional findings will be included in the full YL Ventures State of the Cyber Nation 2025 report, which will be published in early January 2026.
“This year’s data tells a compelling story of maturation and ambition,” said Or Salom, YL Ventures analyst and author of the report. “Israeli cybersecurity entrepreneurs are no longer just building great technology; the Israeli cybersecurity ecosystem is consistently producing category leading companies at global scale.”
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