Arieli EL strengthens Israeli tech, acquiring majority stake in Elron ventures

Arieli EL, a key player within the Arieli group of companies, has made a significant move by acquiring a 59.1% stake in Elron Ventures, a leading cybersecurity and B2B software holding company. The deal, valued at $53.2 million, is a testament to Arieli EL’s commitment to expanding its influence within the burgeoning Israeli tech ecosystem, particularly in the rapidly growing cybersecurity and defense sectors.

Specializing in high-tech and healthcare investments, Arieli EL offers unique opportunities to family offices and institutional investors. Partnering with Arieli Capital, a global leader in innovation, and Elron Ventures, a cybersecurity and B2B software investor, they focus on addressing global challenges through strategic investments and impactful partnerships.

Elron Ventures, publicly traded on the Tel Aviv Stock Exchange, has long been a cornerstone in the Israeli tech investment landscape. With over $250 million in assets under management, Elron’s portfolio boasts 19 cybersecurity, B2B software, and health tech companies. Since 2010, Elron has successfully overseen 15 exits totaling $2.2 billion, demonstrating its ability to nurture early-stage companies into global industry leaders.

This acquisition is being spearheaded by Lisya Bahar-Manoah, who recently joined Arieli EL as Managing Partner. “The gap between real-time cyber solutions and evolving cyber threats is a critical challenge,” said Bahar-Manoah, “In 2023, there were more than 300 million victims of cybercrime globally, with data breaches rising by 78% in the US alone."

Bahar-Manoah emphasized the growing importance of cybersecurity on the global stage, noting that Gartner forecasts a 14.3% year-over-year increase in security and risk management spending, which is expected to exceed $200 billion in 2024. 

"We are excited to be partnering with Elron’s team as well as Elron’s joint venture with Rafael Advanced Defense Systems (Rafael) to further contribute to this sector and continue building innovative solutions for sustained growth,” she added. 

Elron Ventures’ portfolio features several leading companies at the forefront of tackling critical cybersecurity challenges. Among them are Cynerio, which specializes in securing connected medical devices to protect patient safety and data, Cybersixgill, a developer of automated threat intelligence solutions across the clear, deep, and dark web, and IRONSCALES, a platform for automated phishing prevention, detection, and response.

Additionally, the portfolio includes Cyvers, which offers a real-time platform for detecting and mitigating cyber-attacks on cryptocurrency and digital assets; Sayata, which streamlines insurance processes, Red Access, providing an agentless platform to secure corporate browsing activities, and Scribe Security, which delivers a comprehensive solution for securing software supply chains.

Dan Hoz, Chairman of Elron Ventures, shared his optimism about the new partnership, stating, “We are excited to combine our expertise in nurturing Israeli tech ventures with Arieli’s vast global network to provide a platform for our portfolio’s continued success.”

The acquisition of Elron Ventures by Arieli EL is a testament to the growing market opportunities within the Israeli tech ecosystem, particularly as cybersecurity becomes an increasingly critical concern worldwide. Arieli EL’s forward-thinking investment strategy is designed to leverage these opportunities while continuing to offer family offices and institutional investors access to unique, high-impact ventures.