In January, I attended the Cybertech conference in Tel Aviv, on a trip sponsored by the America–Israel Friendship League and the Israeli Foreign Ministry. Also on the trip was Richard Stiennon who wrote about it here. In his illuminating article, he calculated the number of information security vendors per country.
Predictably the United States came out on top with 827 firms. Surprisingly, Israel was second with 228. What’s astonishing from Stiennon’s research is that Israel has more security companies than the next 5 countries combined. How is it that Israel has more security firms than the UK, Canada, India, Germany and France combined? The question is even more compelling given that Israel has a population of roughly 8 million; while those five countries have roughly 1.5 billion inhabitants.
An excellent resource with detailed listings of Israeli technology startups is the IVC Research Center High-tech Yearbook. It has trend analysis and YOY investor activity, along with detailed profiles of investors, including venture capital funds, private equity funds, incubators, angels and corporate investors investing in Israel.
For a visual listing of firms, the Israel CyberScape map from Bessemer Venture provides a listing across 14 information security domains.
So just how did Israel become a global information security superpower? Here’s a few of reasons.
Israeli Prime Minister Benjamin Netanyahu set the goal of making Israel one of the world’s five leading global cyber powers. When a government makes something a priority, and backs it up with financials incentives including research and development grants, which Israel has done; that’s a compelling initiative to generate interest.