Funding in Israeli tech has marked its strongest period in three years. According to analysis by Startup Nation Central, a nonprofit promoting the Israeli innovation ecosystem globally, the first half of 2025 saw the strongest six-month period for Israeli tech funding since 2021, despite the challenging backdrop of the war.
Private capital raised reached an estimated $9.3 billion, a 54 percent jump compared to the second half of 2024. This recovery, which began in late 2024, accelerated into 2025, with funding rising from $3.3 billion in the first quarter of the year to $6 billion in the second quarter, despite a decrease in the number of rounds from 214 to 151.
The number of rounds exceeding $50 million rose from 20 to 32. Among them was the $2 billion Series B round by Safe Superintelligence, one of the largest in Israel’s history.
Enterprise software led all sectors with $3.19 billion across 71 rounds. Cybersecurity followed with $1.98 billion across 56 deals. Without the Safe Superintelligence (SSI) megadeal, cyber would have led the category. Fintech was third, with $751 million across 29 rounds, including a $500 million raise by Rapyd. Health tech had the highest number of rounds (69) but a lower total of $623 million, mostly early-stage.
Avi Hasson, CEO of Startup Nation Central, said: “The data from the first half of 2025 proves that the market continues to price in long-term confidence in Israeli tech, even amid a complex security reality. Just last month, during the lead-up to and throughout the campaign against Iran, we saw 31 funding rounds, providing clear evidence that entrepreneurs are still building and investors still remain confident.
“The strength of the shekel, positive market trends, and the strong presence of global players, both in VC and strategic acquisitions, all reflect the market’s view of Israel’s medium and long-term economic potential. This is yet another sign that Israeli technology, with its unique characteristics and capabilities, remains a valuable force in the global market.”
M&A activity reached a record $39.2 billion in the first half of 2025, driven by Google’s $32 billion acquisition of Wiz. Other notable deals included Next Insurance ($2.6 billion) and Melio ($2.5 billion). Even without the Wiz deal, M&A value stayed consistent at $7.2 billion. There were 60 first-time acquisitions, the most since the first half of 2022, with 51% led by global strategic buyers and 42% by local acquirers.
Public funding also showed momentum. There were 13 transactions totalling $1.6 billion, up from $200 million in the second half of 2024. eToro’s IPO on Nasdaq, the first significant Israeli tech IPO in years, was well received, with shares jumping over 30%.
A total of 447 investors have invested in Israel in the first half of 2025. Despite the ongoing regional conflict, global investors continued to dominate with a share of 62%. The share of rounds with global investor participation increased eight percentage points from 61% in H2 2024 to 69%. iAngels and Pitango were the most active Israeli investors with 15 each.
