Elron Ventures Exits Cyber Company IronScales Through Secondary Sale to PSG Equity at Approximately $340 Million Valuation

Exit reflects 23x return on Elron’s initial investment

  Elron Ventures (TASE: ELRN), a global cybersecurity and B2B software investment company, announced today a secondary sale of its shares in cyber portfolio company IronScales. PSG Equity (PSG) acquired the shares at a company valuation of approximately $340 million, reflecting a 23x return on Elron’s original investment, which was made together with Rafael Development Corporation (RDC). The IronScales secondary transaction coincides with the recent acquisition of Cybersixgill by BitSight, a global leader in cyber risk management. The Cybersixgill exit is expected to generate $22.5 million in proceeds for Elron.

The sale of the IronScales holdings is the second exit since Arieli Group’s acquisition of a majority stake in Elron in September 2024. IronScales, a leading provider of email security solutions, developed an AI-powered automated platform for detecting and preventing phishing attacks. IronScales was the first cyber company in Elron’s portfolio and Elron led IronScales’ initial funding round in 2016 alongside RDC. The current expected proceeds from the secondary transaction are estimated at $26 million. In 2021, Elron realized part of its investment in IronScales, yielding a return of $12.3 million. Following this secondary sale, the cumulative proceeds from IronScales exits amount to over $38 million.

Elron, together with leading global defense company and long-standing partner, Rafael Advanced Defense Systems, has established itself as a leading investor in cybersecurity and B2B software with a history of 17 exits that have a cumulative value of over $2.6 billion. The acquisition of IronScales is the latest in a long list of successful exits in recent years, including Cybersixgill, CartiHeal, Given Imaging, Cloudyn, Secdo, Jordan Valley, Canonic Security, Secured Touch, Alcide, and others. Elron’s portfolio includes both mature and promising early-stage companies across the cybersecurity and defense, B2B software, and health-tech sectors.

Lisya Bahar Manoah, Managing Partner at Arieli Group and Chairperson of the Board of Elron: “On the heels of the recent Cybersixgill acquisition, we are excited to announce another exit. Following Elron’s seed investment in IronScales, we identified an opportunity to exit at a valuation that made sense for the company and our shareholders. With our sale to PSG, we know the company remains in good hands.”

Yaron Elad, CEO of Elron Ventures: “The Cybersixgill and IronScales exits illustrate the value inherent in Elron’s cyber portfolio. It was an honor for Elron to be the first investor in Ironscales founder, Eyal Benishti, at the beginning Ironscales journey.”

Credut: Elron Ventures