A look at notable funding trends, trips and exits
From the curve of COVID-19 For election polls, incentive checks to check the public’s temperature were dominated by the 2020 numbers – the guiding compass of any self-respecting entrepreneurial investor.
As Vice Chancellors especially Israelis focus on investment in cybersecurity, the numbers that guided us have become the most interesting to watch over the past year.
The start of a new year represents the perfect opportunity to reflect on the annual performance of Israel’s cybercity ecosystem and prepare for the next twelve months of innovation. With the global cyber security market outperforming this year’s nervous expectations, we looked carefully through the data to see how Israel’s market, compared to its strongest performer – and predict what is in store.
The cyber security market continues to attract the trust of investors, who understand its increasing importance in times of crisis.
The “cyber nation” not only remained strong during the epidemic, but also saw an increase in fundraising, particularly around application and cloud security, following the emergence of remote workflow security gaps brought on by social disturbances. Encouraged by this, investors have demonstrated enthusiasm for its development and the M&A landscape.
Overwhelmed by the region’s overall power and new opportunities, today’s Israeli visionaries are developing convictions for building large companies; Many of them, who are already successful entrepreneurs, are stepping into the industry as serial entrepreneurs and angel investors.
The number also describes how investors are focusing their funds on big seed rounds for serial entrepreneurs and leading industry trends. More than $ 2.75 billion was poured into the industry this year to back companies at all stages, a 97% increase from the previous year’s $ 1.39 billion. If its long-term slope is any indication, we can only expect it to continue.
However, although they clearly indicate progress, the numbers still illustrate the need for a demographic reset. Like the rest of the industry, Israel’s cybersecurity ecosystem must adapt to the pace of change set by this year’s social movements, and a long time has passed for real diversity and gender representation in cybersecurity leadership.
Seed rounds reveal attractive crosses
As the market’s biggest leaders gain experience and expertise, the bar for entry into Israel’s cybersecurity startup ecosystem has gradually increased. However, it did not affect this year’s entrepreneurial successes. 58% of Israel’s newly established cyber security companies received seed rounds this year, compared to a total of 64 seeded companies in 2020, compared to 61 the previous year. The total number of newly established companies increased by 5%, reversing the declining trend of the previous year.
The amount invested on the seed hit an all-time high in 2020 as an average deal size increased by 11%, averaging $ 5.2 million for the deal. This average continues upward in seed rounds, which has increased year-over-year in the last four years. This provides further support for a shift towards higher caliber seed rounds with a strategically focused and “all-in” approach. In other words, the founders meeting the new bar for entry are making big rounds for a more ambitious vision.
Where is the Money Going?
2020 proved to be an exceptional year for application security and cloud security startups. Perhaps the fugitive successes of Snake and the Czechmarcs made a strong impression. This year saw an explosive 140% increase in application security company seed investments (like Enso Security, build.security and CloudEssence), as well as cloud security seed investments (like Solvo and DeControl) up 200% over the previous year. . .