Investor Shelf

State of the Cyber Nation 2025 (YL Ventures)

ReportYL VenturesJanuary 202514 pages21 min readOriginal source
Key number
$5.1 billion
Total Funding Raised in 2025 p.3
What changed
50 to 75 rounds
Seed Rounds Volume p.4
Largest segment
75 rounds
Most Active Round Stage in 2025 p.4

Summary

  • Israeli cybersecurity total funding reached $5.1 billion across 136 rounds in 2025.p.3
  • Seed funding experienced record activity in 2025 with 75 completed rounds and an average round size of $9.5 million.p.6
  • Early-stage expansion accelerated as Series A rounds rose to 34 and Series B rounds increased to 18 in 2025.p.4
  • Global VCs led seed-stage participation for the first time in 2025, backing 46 seed rounds compared to 37 by Israeli VCs.p.8
  • Series C+ funding rounds declined to 9 in 2025 from 16 in 2024 as companies focused on deploying existing capital toward platform acquisitions.p.5
  • Landmark M&A transactions reached unprecedented scale, highlighted by Google's acquisition of Wiz for $32 billion and Palo Alto Networks' purchase of CyberArk for $25 billion.p.12

Key insights

  1. Total funding in Israeli cybersecurity recovered to $5.1 billion across a record 136 rounds in 2025.p.3
  2. Seed-stage deal volume reached 75 rounds with a high average check size of $9.5 million in 2025.p.6
  3. Series A and Series B rounds expanded to 34 and 18 respectively, indicating stronger pipeline progression.p.4
  4. Foreign investors led seed participation for the first time by joining 46 seed rounds in 2025.p.8
  5. Split-seed rounds co-led by U.S. global VCs and Israeli cybersecurity firms grew to 14 in 2025.p.9
  6. Series C+ rounds contracted from 16 in 2024 to 9 in 2025 due to timing and acquisition-led growth strategies.p.5
  7. Security focus shifted toward governing autonomous AI agents operating directly within business operations.p.10
  8. Exit activity set historic records with three multi-billion dollar acquisitions occurring in rapid succession.p.12

Topics and entities

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