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Google's $32 billion acquisition of Wiz comes as Israel's cybersecurity sector shows resilience and growth despite regional challenges, according to a new report from Cybertech Global and IVC.
The data, released ahead of the Cybertech Global Tel Aviv 2025 conference, reveals a 56% increase in capital raised by Israeli cyber companies in 2024, totaling $3.79 billion.
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Moran Chamsi talks about the Wiz acquisition
(Video: Miki Schmidt)
"I think they have many reasons," Chamsi said. "Google wants to get into the cloud security environment, and we all know they have been pursuing Wiz for months. Now it has happened."
When asked about the timing of the deal, Chamsi pointed to valuation and market demand as key factors.
"We know from media reports that nine months ago, Google offered a $23 billion valuation, and now it's $32 billion," Chamsi said. "The need for cybersecurity, especially in the cloud, is growing day by day. Google wants to position itself alongside Amazon and Microsoft and become a significant player in this field."
The acquisition also holds substantial implications for both companies, with Wiz expected to retain some operational independence despite being integrated into Google's ecosystem.
"We read yesterday that Wiz will remain a private company and can continue to serve Google's competitors," Chamsi said. "That's a significant shift from what was proposed nine months ago. Google aims to be a category leader in cloud security, and this acquisition positions them to do that."
Maintaining independence post-acquisition is a challenge many companies face, but Chamsi cited successful examples like LinkedIn under Microsoft.
"We've seen successful integrations like Mobileye and Intel," Chamsi said. "Google has completed many mergers and acquisitions over the years, and I believe we will see a successful merger here. Wiz can establish itself as a category leader in cloud security with Google's support. This deal is a major milestone for Israel's tech industry."
Israel's cyber sector shows growth despite challenges
The Cybertech Global and IVC report outlines significant developments in Israel's cyber sector, highlighting growth in funding despite a decline in total exit values.
According to the report, Israeli cyber companies raised $3.79 billion in 2024, a 56% increase from the $2.42 billion raised in 2023. The average capital raised per deal was $32.67 million.
Seed-stage investments increased by 9.5%, with 58 deals completed in 2024. However, Series A deals decreased by approximately 21% to 23 transactions, while Series B saw a more substantial decline of 36%, with only 14 deals. In contrast, Series C and later-stage funding rounds (D and beyond) rose by 40%, with seven and 14 deals, respectively.
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Wiz founders Yinon Costica, Assaf Rappaport, Ami Luttwak and Roy Reznik
(Photo: Avishag Shaar-Yashuv)
The total value of exits for Israeli cyber companies in 2024 fell by 37%, totaling $4.39 billion compared to $7.1 billion in 2023. Despite this decline, the number of exits increased slightly from 24 to 26, with the majority occurring through mergers and acquisitions. Only one exit was completed via an initial public offering (IPO).
"Cyber continues to attract the majority of foreign investments in Israel and remains the true driving force of the high-tech sector," said Amir Rapaport, journalist and founder of Cybertech Global. "The number of cyber companies in Israel is second only to the United States."
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In 2024, 546 cyber companies were registered as active in Israel, up from 522 the previous year. Among these, 300 companies are in the early revenue stage, while 115 are focused on research and development. About 100 companies reported annual revenues of $10 million or more, and 31 remained in the seed stage.
"Israel's cyber strength will continue to foster leading technologies," Rapaport said. "Cybertech Global Tel Aviv has become a central meeting point for top cybersecurity leaders worldwide."
Cybertech Global Tel Aviv 2025
The report was released in anticipation of the 12th edition of Cybertech Global Tel Aviv, one of the world's largest cyber gatherings. The event, scheduled for March 24-26 at Expo Tel Aviv, is being held in collaboration with the Israel National Cyber Directorate, the Israeli Ministries of Economy and Foreign Affairs, the Tel Aviv Municipality, and Ben-Gurion University of the Negev.
The conference is expected to draw thousands of attendees from Israel and abroad, including delegations from 52 countries, industry leaders, and key opinion makers. High-profile speakers will include Israeli President Isaac Herzog, Minister of Economy and Industry Nir Barkat, and former CIA Chief Technology Officer Bob Flores, among others.
Panels will cover a broad range of topics, including artificial intelligence and cybersecurity, cloud security, quantum technology, national and international cyber defense, and the future of global cyber cooperation.
"This year’s Cybertech Global Tel Aviv will showcase significant innovations and in-depth analyses of the latest developments in the cyber landscape," organizers said in a statement.
The conference will also include a joint session with the Sparks Innovation Summit on March 26, extending Tel Aviv Tech Week's lineup through March 28.