Opinion
Europe wakes up to cyber - Will entrepreneurs and investors seize the opportunity in time?
"Europe is investing unprecedented resources in building cyber resilience, and the market is open to collaborations with international players with a proven track record. Will Israel be content with watching from the sidelines, or will it know how to use this momentum to become a strategic partner of Europe?" writes Tomer Amir, a Product Manager at Google Cloud’s European team in London.
For years, Israel has been considered a global leader in the cyber field, primarily in the American market, where Israeli companies have successfully established their position as key players in a booming industry. The Israeli advantage in this sector has become clear to all: it's the product of a unique combination of high-quality talent, graduating from technological units, and practical, real-time experience in handling cyber threats. This is combined with the mental flexibility and daring that have become synonymous with Israeli entrepreneurs. As a case in point, in recent weeks alone, we witnessed a massive deal in which the Israeli company CyberArk was acquired for an immense sum by another Israeli cyber giant, Palo Alto Networks.
Over the years, for obvious reasons, Israeli entrepreneurs have grown accustomed to focusing on the United States as their starting point for building a successful company in the cyber industry. But these days, Europe is in the midst of a significant strategic move in the cyber domain - one that may open a rare window of opportunity for Israeli entrepreneurs who want to be at the forefront of this revolution. Under the radar of most entrepreneurs, Europe is becoming a growing, hungry market that is ready for long-term collaborations and is gradually becoming more than just a stop on the way to America.
Europe in Focus: Unprecedented Attacks and Massive Investment in Solutions
Since the beginning of 2025, Europe has been hit by a series of major cyber attacks that have sent shockwaves across the continent, exposing critical vulnerabilities in local cyber defenses. In the UK, major retail chains like M&S, Co-op, and Harrods suffered severe network breaches, leading to widespread service disruptions, supply chain delays, and significant financial losses. In April, the national electricity grids in Spain and Portugal mysteriously collapsed for a full day, leaving millions of citizens without power. In France, a hacker group published dozens of gigabytes of sensitive data from security infrastructure, including a significant leak from Naval Group, a leading company in the naval defense industry, which raised fears of damage to national security. The economic fallout from each of these attacks, beyond the security and reputational damage, was estimated in the hundreds of millions of euros, whether due to operational shutdowns, repair costs, or the allocation of future budgets for more sophisticated defense systems.
These attacks are not happening in a vacuum. They come on top of ongoing geopolitical tensions, stemming in part from the deepening rift between Europe and the United States under Trump's isolationist foreign policy, as well as the instability caused by the war in Ukraine. In light of all this, Europe is facing a new reality, with a constant threat to its critical infrastructure alongside a growing technological dependency.
In response, the European Union is formulating and implementing a detailed action plan that includes significant grants and incentives for cyber startups, aiming to develop innovative solutions, breakthrough technologies, and advanced methodologies for protection against attacks. Just recently, the EU announced an unprecedented investment of over €247 million in the field as part of the flagship Horizon Europe program, which allocates grants to researchers and ventures from EU member states and associated countries, including Israel.
At the same time, Europe is also accelerating the pace of regulatory changes. Last February, the EU Cyber Solidarity Act came into effect, aiming to create a real-time action and information-sharing mechanism among member states to facilitate rapid identification and response to cyber threats. In July, the UK added another layer with new legislation requiring online age and identity verification - a move designed to protect users but one that also poses technological and operational challenges. European regulation, which in many cases is even stricter than its American counterpart, on one hand creates new demands on companies, but on the other hand also opens doors for strategic expansion.
Looking Ahead: A Test for Israel
The current wave of cyber attacks on Europe is not expected to disappear - on the contrary, it's expected to intensify and become more focused and tailored. Europe is investing unprecedented resources in building cyber resilience, and the market is open to collaborations with international players with a proven track record. Will Israel be content with watching from the sidelines, or will it know how to use this momentum to become a strategic partner of Europe?
Our advantage is clear: a combination of knowledge, experience, and exceptional execution capabilities. Now the question is whether we will know how to turn this advantage into an economic and security anchor in the European arena, which is closer to home. For early-stage startups, Europe offers a wealth of grants and funding programs that can accelerate growth and open new doors. For more mature companies, it is an opportunity to explore strategic collaborations and adapt their products to local regulatory standards. And for investors, as the American market becomes crowded and competitive, Europe is opening up as an attractive and potential-filled destination. Don't miss the European train - it has already left the station, and the question is who will get on board in time.
Tomer is a Product Manager at Google Cloud’s European team in London.
