Israeli Cyber start-up industry – why is it so hot and still warm?

Israeli Cyber start-up industry – why is it so hot and still warm?

In 2020 we saw the Israeli cyber industry “explosion” with almost 3-billion-dollar investment.

What are the key factors that helped the Israeli cyber continue grow-up and why will these trends continue in the future?
Israel is a start-up nation and, for many reasons, build Israel’s innovative country, but I think the Israeli cyber is special.
In this short article, I will describe my idea about the Israeli cybernation.



Israel is a digital country with a strong economy and innovation of research and development; on the other side Israel always under security issues.
That situation drove to a blending of creative ideas and a strong engine to lead cyber start-ups. It takes the lemon and makes lemonade.

Cyber human capital

As I mentioned in the last paragraph, “Israel always under security issue” led to many technological education programs for “Elite teenagers.” Thousands of teenagers take part in formal and informal cyber programs—this situation creating a talent mining lake for IDF and the cyber industry.
The IDF takes the most brilliant kids and helps them to shape their skills of creativity, program scheduling, team players, and of course, accumulate experience and opportunity to build cut edge cyber technology.

Bad guys – never sleep

The digital world brings with him plenty of options to our life. Fast, flat earth and connectivity are just a few things of the internet revolution. The content made king, and from that point, all our daily life has been changed.
In the first, the cyber was an “exclusive game” for superpower countries, but over time the cyber technology became available to an active player like a criminal organization; unfortunately, those players are Less restrained and cause damage to our society and our economy.

Cyber – cross-sector issue

Cyber is a cross-sector digital platform, which means that any processor in the digital and communications arena need to be cyber considered.
Cyber is more than business continuity for the digital platform; it also protects the products’ liability, such as in AI case.
Cyber is the “water” of the modern digital world. Without cyber, we cannot enjoy the fruit of advanced technology.
Whatever the cyberspace made from two fields, defenders and attackers and technology developed for both sides.

"New sectors"

The digital revolution has not passed on any sector; the more the industry is “special and unique, it will need superior cyber solutions.
We saw how digital transformation impacts on Old sectors to became digital organizations. We also saw how old sectors Vulnerable to cyber-attack.
The covid-19 created much damage and made the world sabotage, but at the same time, she began a new order that revolution make.
I believe we see the tip of the iceberg’s impact on our life. The covid-19 is more than a disruption event. “I know that we don’t know” what will happen, but I believe the covid-19 is a vast potential for a new cyber start-up.

Unsolved issues

A side effect of digital innovation is huge cyber problems. Ransomware attacks, fake news, Impersonation, identity theft, and many other issues.
Also, we have cyber-Challenges with many other sectors like; 5G, Adversarial AI, IOT secure, cyberspace, personal cyber, and so on.


The keys factor continuous increasing cyber start-ups are a combination of
Some parts represent in three demo equation:

  • Bad Guys X digital innovation = High risk
  • Elite Human capital X local security issues = creative solution
  • High-risk X creative solution = Israeli startups opportunity grow up

Our mission is to build a strong cyber start-up for the major digital problem.With great power comes great responsibility (“Peter Parker principle”)


Rafael Franco
Former deputy director-general