Tuesday, July 23, 2024
Reading Time: 3 minutesArieli EL, a subsidiary of the Arieli conglomerate, has officially announced the purchase of a 59.1% ownership stake in Elron Ventures, a seasoned player in the cyber and B2B software sector. This transaction, valued at $53.2 million, was executed with Discount Investment Corporation Ltd. This strategic acquisition underscores the vast market potential within Israel, particularly in the fields of cybersecurity and defense. Lisya Bahar-Manoah, Managing Partner at Arieli EL, spearheaded the acquisition of Elron Ventures.
Evan Renov and Eric Bentov, both Co-Founders of Arieli EL, along with Managing Partner Lisya Bahar-Manoah, played pivotal roles in this acquisition. Their combined expertise and leadership are set to drive the integration and future growth of Elron Ventures under the Arieli EL umbrella. This move is poised to enhance Arieli EL’s footprint in the cybersecurity domain, capitalizing on Israel’s renowned status as a cybersecurity powerhouse.
The cybersecurity landscape is rapidly evolving, with Gartner projecting global security and risk management expenditures to exceed $200 billion in 2024, marking a 14.3% increase from the previous year. This surge in spending highlights the escalating significance of cybersecurity measures worldwide. Israel, with its robust ecosystem of over 500 cybersecurity firms, continues to be at the forefront of this critical industry, offering innovative solutions and technologies.
This acquisition by Arieli EL not only reinforces its strategic expansion but also aligns with global trends emphasizing the importance of cybersecurity. As the demand for advanced security solutions grows, Arieli EL’s enhanced capabilities through Elron Ventures position it to leverage emerging opportunities and strengthen its market leadership in the cyber and B2B software sectors.
“The gap between real-time cyber solutions and evolving cyber threats is a critical challenge,” said Lisya Bahar-Manoah, Managing Partner at Arieli EL. “In 2023, there were more than 300 million victims of cybercrime globally, with data breaches rising by 78% in the US alone. Israeli cybersecurity exits in 2023 grew by 65% totalling $7.1 billion, and we see this trajectory only gathering pace in 2024 as demonstrated by reports of Google’s acquisition of Wiz for $23 billion. We are excited to be partnering with Elron’s team as well as Elron’s joint venture with Rafael Advanced Defense Systems to further contribute to this sector and continue building innovative solutions for sustained growth.
Elron Ventures has over $250 million in assets under management and its portfolio includes over 19 companies across the cybersecurity, B2B Software, and health-tech spaces. Since 2010, Elron’s portfolio has had 15 exits, totaling $2.2B. Notable portfolio companies include: Cynerio, a healthcare cybersecurity company, ensures patient safety and data protection by securing the connected medical device ecosystem; Cybersixgill, developing automated threat intelligence solutions across the clear, deep, and dark web; Cyvers, offering a real-time platform for detecting and mitigating cyber attacks on cryptocurrency and digital assets; IRONSCALES, an automated phishing prevention, detection & response platform; Sayata, automating insurance company processes; Red Access, providing the first agentless platform to secure all browsing activities of corporate employees on any browser, web app or cloud service and Scribe Security, providing a comprehensive solution to secure software supply chains.
“We are excited to have the opportunity to combine our joint experience and know-how in nurturing Israeli tech ventures throughout all stages of growth with Arieli’s vast global network to provide the platform for our portfolio’s success,” said Dan Hoz, Chairman of the Elron Venture’s board.
