Israel
143 companies assessed. 88 of them, 61.5%, sit in the two least protected bands, against 53.3% across all 10,525 companies assessed.
Israel's company base splits sharply along one line: does the company own something a government, bank, or hospital cannot easily replace, or is it selling a feature that a bigger platform can now bundle for free. Defense and critical-infrastructure names like Rafael, Elbit, Israel Aerospace Industries, and Cellebrite sit almost untouched, because their buyers are governments locked into long procurement cycles and there is no AI shortcut to building missiles or forensic chains of evidence. Cybersecurity is the messier middle: CyberArk, Wiz, JFrog, and Armis are holding because they got bought or scaled fast enough to set the pace, while Aqua Security, Orca, Checkmarx, and Mend.io are getting squeezed as Microsoft, Google-backed Wiz, and cheaper AI-native scanners fold their category into bigger platforms. The clearest losers are companies whose entire product was a thin AI wrapper with no data or distribution moat: AI21 Labs, LawGeex, RapidAPI, Hailo, and Cybereason all lost their edge to hyperscalers or category leaders shipping the same thing natively and cheaper. The dynamic that decides everything is distribution: whoever already owns the platform, the cloud account, the IDE, or the government contract absorbs the AI feature, while standalone tools without owned distribution get bundled out of existence.
Every company in Israel is listed in the A to Z index and in its sector league.
- Will Israeli cybersecurity companies survive the AI era?
- It depends on the company. Wiz, CyberArk, JFrog, Armis, and Silverfort are holding up because they either got acquired by bigger platforms or built a category others can't easily bundle. Aqua Security, Orca, Checkmarx, and Mend.io are under real pressure as Microsoft and Wiz bundle equivalent scanning into existing plans.
- What happened to AI21 Labs?
- AI21 Labs dropped its own foundation models to sell an orchestration layer called Maestro, but OpenAI, Anthropic, Google, Amazon, and Microsoft are now shipping similar orchestration tools directly, leaving AI21 with a moat score of just 1.
- Why is Cybereason struggling?
- Cybereason lost the endpoint detection market to CrowdStrike, SentinelOne, and Microsoft Defender, and was absorbed by LevelBlue in a November 2025 acquisition after years of losing share.
- Is Wiz a strong company compared to other Israeli cloud security firms?
- Wiz is one of the stronger positions in the group, with a moat score of 8 and pressure at only 3, and it's now backed by Google Cloud, which is actually squeezing rivals like Orca Security that run a similar agentless model.
- What is happening to Israeli AI coding tools like Tabnine and Qodo?
- Both face heavy competition: Tabnine is losing developers to GitHub Copilot's default IDE integration and Cursor's agentic coding, while Qodo competes against GitHub Copilot's free code review bundle and CodeRabbit's 140,000 paid users.
- Which Israeli tech companies are considered little protection left to losing their business?
- AI21 Labs, RapidAPI, LawGeex, Cybereason, StoreDot, OrCam Technologies, Hailo, and Deep Instinct are all flagged as wide open, each facing pressure scores of 7 or higher with weak defensible positions.
- Whether Wiz's Google Cloud backing translates into bundled pricing deals that Orca Security and Aqua Security publicly lose bids over
- Whether Checkmarx discloses further customer churn following its March-April 2026 breach
- Whether StoreDot or Hailo announce a completed sale, shutdown, or a first commercial shipment