Unprecedented Growth in Israeli Tech Funding Signals Confidence
Strong Growth in Israeli Tech Funding
Startup Nation Central has revealed an analysis of platform activity indicating the first half of 2025 showcased an impressive rebound in Israeli tech funding, marking the strongest performance in three years. An estimated total of $9.3 billion was raised in private capital, showcasing a remarkable 54% increase compared to the latter half of 2024. This surge highlights a robust recovery trajectory that began in late 2024 and accelerated dramatically in the second quarter of 2025, where funding figures jumped from $3.3 billion in Q1 to $6 billion in Q2. This surge occurred despite witnessing a drop in the number of funding rounds, which decreased from 214 to 151.
Changes in Capital Deployment
The landscape of funding is evolving, with larger funding rounds becoming increasingly prevalent. The number of funding rounds exceeding $50 million has risen significantly from 20 to 32. Particularly notable was the exceptional $2 billion Series B round raised by Safe Superintelligence, which stands as one of the largest funding rounds in Israel's technological history.
Sector Performance
Among various sectors, enterprise software secured the top position, raising an impressive $3.19 billion through 71 rounds. Cybersecurity closely followed with $1.98 billion across 56 deals. If we exclude the mega-deal involving Safe Superintelligence, cybersecurity would have taken the lead. The fintech sector claimed third place with $751 million raised over 29 rounds, including a significant $500 million funding by Rapyd. Although health technology had the highest number of funding rounds at 69, its total amount of $623 million mostly stemmed from early-stage funding.
Investor Confidence and Market Trends
Evidence of early-stage recovery is emerging, with pre-seed and seed funding experiencing a commendable 50% increase to reach $607 million. Series B and C funding also saw a substantial 60% growth, excluding the SSI raise. While the total count of deals fell by 10% relative to the latter half of 2024, the median round size soared soaring by 28% to an impressive $9 million. This uptick underscores a growing investor confidence in the maturity of startups.
Mergers and Acquisitions on the Rise
In M&A activity, a remarkable record was set in the first half of 2025 with $39.2 billion in transactions. This growth was propelled by Google's landmark acquisition of Wiz for $32 billion, alongside noteworthy deals involving Next Insurance at $2.6 billion and Melio at $2.5 billion. Without the Wiz acquisition, M&A valuations remained healthy at $7.2 billion, complemented by 60 first-time acquisitions—the highest number since early 2022. Of these, 51% were driven by global strategic buyers, while 42% were led by local firms.
Public Investment Trends
The public funding landscape also revealed momentum, with 13 transactions accounting for a total of $1.6 billion, a marked rise from $200 million in the second half of 2024. eToro's highly anticipated IPO on Nasdaq broke ground as the first significant Israeli tech IPO in years, well-received by the market as shares surged over 30%.
The Future Outlook for Israeli Tech
The first half of 2025 witnessed participation from a total of 447 investors in the Israeli tech sector, down 12% from the previous six months. Encouragingly, global investors maintained dominance, holding a 62% market share, with the participation of global investors in funding rounds increasing significantly from 61% to 69% between the two halves of 2024. Leading Israeli investors, iAngels and Pitango, each marked 15 contributions in the funding landscape.
Avi Hasson, CEO of Startup Nation Central, noted, 'The data from this first half reveals a resilient market continually adapting to complex conditions while maintaining long-term confidence in Israeli tech innovation. Confidence persists among entrepreneurs and investors alike, showcasing a robust capability inherent within Israeli technology.'
Yariv Lotan, VP of Digital Products and Data at Startup Nation Central, added, 'We observe a trend towards quality over quantity in investments, with fewer but more substantial funding rounds allowing startups greater flexibility. There's a notable recovery at early stages, evidenced by rising pre-seed and seed investments, along with vigorous activity in stealth-stage companies, together signaling potential unlocks within Israel's tech ecosystem.'
The detailed report set to be released soon will delve into specific sector trends, cross-border comparisons, and insights from the vibrant Israeli tech sphere.
About Startup Nation Central
Startup Nation Central is dedicated to linking global solution seekers with the innovation expertise found within Israel. Through its platform, Finder, it promotes immediate access to insightful data and business connections, facilitating interaction across sectors and bolstering global collaboration in innovation.
Frequently Asked Questions
What were the total funds raised in Israeli tech in H1 2025?
The total funds raised were approximately $9.3 billion, marking a 54% increase from H2 2024.
Which sector saw the highest funding in the first half of 2025?
Enterprise software led the sectors, raising $3.19 billion over 71 funding rounds.
What was notable about the Series B round by Safe Superintelligence?
Safe Superintelligence's Series B round was a monumental $2 billion, one of the largest funding rounds recorded in Israeli history.
How did the public investment landscape perform in H1 2025?
There were 13 transactions totaling $1.6 billion, significantly up from $200 million from the previous half.
What does the future hold for Israeli tech funding?
The outlook remains strong, with continued investor confidence and emerging opportunities reported throughout the tech ecosystem.
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