16 want people positioning to enable them to compete on the best ventures and teams,” Roy Caner notes. Active Investment in Seed and Cybersecurity Seed-stage investment remains an active area, with both local and international funds continuing to show interest in Israeli entrepreneurs. This trend is particularly evident in sectors like cybersecurity, which have retained investor attention despite the current challenges. A notable example is Sequoia Capital, the American venture capital firm, which has reaffirmed its commitment to Israel during a period of geopolitical uncertainty. Known for early investments in companies like Apple, Airbnb, and Stripe, Sequoia has appointed Dean Mayer as its representative in Israel. “Cybersecurity has become a critical component of global security, and Israeli startups are leading the charge,” Roy Caner continues. “Investors recognize that strong founding teams, not just ideas, are what make or break a startup in this space. They will invest in teams before a clear product is fully conceptualized.” Despite these continued investments, external funding remains challenging for many startups in certain sectors. While seed-stage investment is active, geopolitical and economic uncertainties have added complexity to the fundraising landscape. In this context, the persistence of intense interest in cybersecurity startups highlights the sector’s resilience even amid external pressures. M&A Activity: Domestic and International Dynamics Notwithstanding existing challenges, mergers and acquisitions (M&A) have prospered, particularly in cybersecurity. Global giants and domestic firms are acquiring innovative Israeli startups, solidifying Israel’s status as a critical player in the sector. According to a recent report by Vintage Ventures, the value of M&A deals in the past year reached a new record high of approximately $10.5 billion, marking a 22% increase from the previous record of $8.6 billion set in 2021. This surge highlights the ongoing strength of Israeli tech companies, with international acquirers continuing to recognize the value of acquiring innovative startups and more mature technology companies across various
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