Despite a cooling trend across many technology sectors, the investment environment for artificial intelligence and cybersecurity startups remains resilient in 2025. Industry reports indicate that investor confidence in these sectors continues to hold steady, reflecting growing demand for innovation in digital protection and intelligent automation.
For Glilot Capital, this aligns with what the firm is already seeing on the ground. “The climate for our focus on cyber and AI is very strong,” said Kobi Samboursky, one of Glilot Capital’s founding partners. “This year has been a record one for us, showing just how high the demand is.”
Co-founder Arik Kleinstein added that the market is maturing in ways that benefit investors who prioritize value creation over hype. “The noise of the market has quieted down, which means investors can now focus on real innovation and business fundamentals,” he said. “That’s where Glilot has always excelled: backing teams that combine vision with execution.”
Playing the Long Game
While some investors pursue quick wins, Glilot takes a patient, long-term approach. “Good investors always play the long game,” Samboursky said. “The potential today is huge. AI and cybersecurity are disrupting existing markets and creating entirely new ones, but that kind of transformation takes time.”
That philosophy has defined Glilot’s investment strategy since its founding. With 23 successful exits to date, the firm’s track record underscores the strength of its approach. “We’ve been able to prove that you can build big companies while also generating significant liquidity,” Samboursky added. “That balance allows us to think long term while still delivering strong DPI to our investors.”
Kleinstein agreed, noting that Glilot’s approach is built on trust and partnership. “Our job is not just to fund companies but to help them scale responsibly,” he said. “That’s how we achieve consistent outcomes and maintain alignment with our founders over the long term.”
$500 Million Fund Fuels Next Wave of AI and Cybersecurity Innovation
This long-term vision is being backed by significant new capital. In September 2025, Glilot Capital announced it had raised $500 million to accelerate investments in artificial intelligence and cybersecurity. The new funds will be used to support early-stage startups as well as later-stage companies driving innovation in these high-growth sectors.
Standing Out in a Crowded Market
In Israel’s highly competitive deep-tech ecosystem, where AI and cybersecurity innovation are thriving, Glilot’s ability to deliver measurable results helps it stand apart. “Our ability to help portfolio companies is unique,” Samboursky said. “It’s attractive to great founders, which means we win twice by bringing in top talent and by delivering strong returns.”
Kleinstein added that Glilot’s operational involvement gives it a competitive edge. “We don’t just invest; we partner closely with our companies. Whether it’s strategy, hiring, or global expansion, we’re hands-on from day one,” he said.
Samboursky expects the venture capital landscape to evolve over the next few years. “We’re big believers in the specialization model,” he said. “Cybersecurity is a unique domain that requires focused expertise. But we also expect consolidation among larger, generalist funds as new, specialized teams emerge.”
New Frontiers for AI and Cybersecurity
As AI models grow more powerful, so do the risks associated with them. Samboursky sees immense potential across three core areas of opportunity. “We see huge opportunities across three super domains,” he explained. “First, protecting AI itself—the models, data, and tools. Second, using AI as part of cyber operations to counter AI-driven attacks. And third, AI-native companies that can replace older cyber incumbents.”
Kleinstein added that this evolution is reshaping how businesses think about defense. “Security is no longer just about protection; it’s about enabling innovation safely,” he said. “The companies that can strike that balance will lead the next wave of digital transformation.”
Business models are evolving just as rapidly as the technology itself. “The main model will likely remain B2B,” Samboursky said. “But the rise of AI agents opens new possibilities for usage-based or service-style models we haven’t seen before.”
Exit Outlook and Risk Strategy
Even amid slower IPO activity, Samboursky remains confident about the near-term exit environment for cybersecurity and AI startups. “One of the big advantages of cybersecurity investing is its relatively strong exit environment,” he said. “We’re seeing growing M&A activity not just from big cyber players but also from technology firms, service providers, and even mid-sized companies looking to strengthen their defenses.”
Glilot typically invests in around 12 AI and cybersecurity startups per fund, maintaining a focused yet diversified portfolio. “We’ve always believed in a relatively concentrated portfolio,” Samboursky said. “Twelve companies is a good balance, especially given our high hit rate and the returns we’ve achieved with this model.”
To mitigate the risk of technological obsolescence, Glilot backs teams with deep technical insight and adaptability. “We try to identify companies that are running the risk of becoming obsolete early,” Samboursky added. “If needed, we help them find another home before the risk becomes material.”
Kleinstein emphasized that Glilot’s proactive approach to risk is part of what keeps its performance consistent. “We don’t wait for problems to surface; we anticipate them,” he said. “That mindset is critical in fields that move as fast as AI and cybersecurity.”
What’s Ahead for AI
Samboursky believes that the convergence of AI and cybersecurity represents a transformation even greater than the cloud revolution. “AI has a bigger impact on our lives than cloud ever did,” he said. “Already, analysts are identifying multiple sub-domains for AI protection, and this is only the beginning.”
For Glilot, this is not just an investment cycle but the start of a decade-defining opportunity. “The depth and breadth of AI usage are growing so quickly that new attack surfaces appear almost daily,” Samboursky said. “That’s exactly where the biggest opportunities lie.”
Kleinstein agreed, framing this moment as one that will shape the future of digital security. “The next generation of cybersecurity companies will be born from AI itself,” he said. “It’s an incredible time to be building in this space.”
As the digital landscape evolves, Glilot is positioning itself at the intersection of innovation and resilience but also building companies designed not only to defend against tomorrow’s threats but also to define the future of digital security.