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Almost all startups in Israel are cybersecurity oriented. There is almost no dealflow for a non-Security startup in the Israeli market because Israeli VCs dema
by alephnerd 2y ago
Almost all startups in Israel are cybersecurity oriented.
There is almost no dealflow for a non-Security startup in the Israeli market because Israeli VCs demand a short exit window, Cybersecurity startups are very M&A friendly, and Israeli VCs don't have as much experience with GTMing B2C and B2B2C compared to Enterprise.
Cybersecurity is the right mix of easy but niche (only Israel, CEE, India have a thriving low level development scene because American universities increasingly moved OS and Kernel classes into "Computer Engineering" instead of "Computer Science"), easy exits (there are enough F1000 cybersecurity and enterprise companies to sell a startup to), large dealsize (cybersecurity/infra ACV tends to be mid-to-high 5 figures), and pre-existing network (the Israeli and Indian scenes started thanks to Palo Alto Network's successful IPO, and the founding team at PANW became VCs funding similar startups across Israel and India since the mid-2000s).
Also, Israel is TINY (both in area and population). Everyone is at most 3 degrees of separation from Netanyahu or any other dignitary in the country - it's barely 9 million people.
- selimthegrim 2y agoI wonder how easily Carbyne got funding but I suppose there is a homeland security/emergency management angle.