The Israeli cyber ecosystem has evolved rapidly from 2019 through today. In recent months, this momentum was underscored by two record-breaking exits that not only set new benchmarks for deal size, but also reaffirmed the strength and maturity of the sector.
So far in 2025, Israeli cyber exits have been announced in 18 of 36 weeks, a pace that underscores just how on fire the market truly is. But while momentum is high, the multi-billion-dollar deals are reshaping perceptions: they set new benchmarks for success, yet also raise questions about sustainability, valuation discipline, and what it now means to “win big” in this ecosystem.
This report serves as an update to our Israeli Cyber Startups Exits Landscape series, providing an early look at 2025 market activity with a particular focus on M&A, building on our report from late 2024. While a full year-end report will follow, our goal here is to analyze the data available today to assess where Q4 2025 will take us.
What’s clear is that as threats around the world continue to grow and evolve, the ecosystem for SecureTech remains strong. Israel continues to play a strong role in that story, highlighted by the exits and innovation featured in this report.
All data in this report is current as of September 17, 2025.
Macroeconomic Trends
To set the stage for 2025’s review, we begin with the macroeconomic context—Public markets act as the key proxy, it shapes investor confidence, valuations, and IPO/M&A windows, and ultimately determines exit timing. Macro drivers remain highly influential: we are still in a post-COVID environment marked by geopolitical volatility, trade tensions, inflation waves and corrections, rising fiscal debt, and ongoing military conflicts.
At the same time, the Israeli cyber market is on fire, with exits happening at record pace and multi-billion-dollar deals redefining what it means to win. These mega-transactions amplify momentum but also shift perceptions, raising benchmarks and reframing how all other deals are viewed in the ecosystem.
From 2020 to 2025, Israel and the U.S. have largely followed parallel macroeconomic trajectories shaping exit conditions. Both economies saw inflation spike in 2021–2022, prompting sharp rate hikes to 4.5% that compressed valuations and narrowed IPO windows. As inflation has cooled toward 2–3%, stability is returning, even as the cost of capital remains elevated. Growth is steady in both markets, with the U.S. expanding at ~2% and Israel expected to outpace peers at 3.2%. Labor markets mirror this resilience: U.S. unemployment has settled near 4%, while Israel leads advanced economies at just 2.9%. Together, these aligned trends create a favorable backdrop for cyber exits in 2025, reinforcing the close link between the two ecosystems.
Israel Cyber IPOs in 2H 2025
Five Israeli cyber companies went public in the last six years – SentinelOne, Hub Security, Riskified, Jfrog, Tufin – in addition to Cyabra announcing its intent to go public via SPAC in July 2024. 2025 did not yet see Israeli cyber startups going public, and one of the main candidates expected to IPO (Wiz) has been acquired.
Generally, the IPO cyber market remains quiet, with a hint of an opening following the eToro IPO in May 2025, the Via IPO in September 2025, and several other likely candidates (current cyber unicorns) gearing up to go public in the coming 12 months. Conditions remain favorable for cyber. When looking at leading cyber public companies trading on NASDAQ and NYSE, you can see that cyber is outperforming the S&P500.
Mergers & Acquisitions in Israeli Cyber Market
This year marks the highest M&A activity as compared to the same time period in all previous years since 2019. Since the start of January 2025, we have had 20 Israeli cyber exits, totaling 137 exits from 2019 to now. In total, Israeli cyber has seen $82B of exit dollars announced to date. Just this year, $59B of exit dollars have been announced, which is 2.5X more than all exits from 2019-2024 combined.
As the major driver in this growth, In March 2025, Wiz was acquired for $32B, marking the largest exit in Israel’s history, the world’s largest cybersecurity M&A ever, and the largest VC-backed deal ever. Just five months later, CyberArk was acquired for $25B, marking it the second largest exit in Israel’s history. These two exits accounted for 98% of value realized this year and 70% of value realized since 2019.
Unicorns in the Israeli Cyber Ecosystem
Excluding Wiz, today we have 22 Israeli cyber unicorns worth an aggregate value of $58B, who have raised an aggregate $12B of funding in their company’s lifetimes thus far. Both Dream and Pentera became unicorns in 2025. Half of today’s unicorns have raised in the last 12 months, showing high growth activity in Israel.