Israeli Cybersecurity Funding Hits $4.4 Billion Record High

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 figure marks a 9% rise from $4.03 billion in 2024 and comes from 130 funding rounds, well above the 89 rounds announced the previous year. Seed rounds accounted for 71 deals raising about $680 million, while 50 Series A and B rounds raised roughly $920 million each, and nine Series C+ rounds added around $1.9 billion.

US-based firms led 44 seed rounds, Israeli VCs led 35, with 13 seed rounds co-led by both US and Israeli investors. Seed investment in AI security firms increased (12 companies versus 8 in 2024), and endpoint security saw a surge with 11 rounds in 2025 compared with only one in 2024, as major rounds from Armis, Cato Networks, Cyera, Dream and Island were highlighted.

YL Ventures has tracked the ecosystem for a decade, noting growth in total funding from $689 million to $4.4 billion and in the number of rounds from 72 to 130.