Private investment in Israeli Tech climbs

Israeli high-tech companies raised $15.6 billion in private funding in 2025, up sharply from $12.2 billion in 2024, according to preliminary data released on Monday by Startup Nation Central (SNC).

The technology sector, one of the most dynamic globally, continues to play a central role in Israel’s economy, accounting for around 20% of GDP, 15% of total employment, and more than half of the country’s exports. 

The latest figures highlight the sector’s resilience, even as the war in Gaza, which began in 2023, weighed on economic activity. Total funding that year stood at $10 billion.

Despite geopolitical uncertainty, global technology leaders such as Nvidia announced plans in 2025 to expand both their physical footprint and talent base in Israel, reinforcing confidence in the country’s innovation ecosystem.

While the number of funding deals fell to 717, the lowest level in a decade, deal sizes increased significantly. SNC reported that the median private funding round reached a record $10 million, representing a 67% increase compared with 2024.

“2025 was not about a return to business as usual; it marked a shift toward high-conviction maturity,” said Avi Hasson, CEO of SNC.

Mergers and acquisitions also surged, reaching a record value of $74.3 billion across 150 deals. 

The trend was driven by major transactions, including **Alphabet’s $32 billion acquisition of cybersecurity firm Wiz and **Palo Alto Networks’ $25 billion purchase of rival CyberArk.

According to SNC, the strong M&A activity reflects multinational corporations’ efforts to secure access to critical innovation. “These companies are increasingly turning Israeli startups into their next generation of R&D engines,” the report noted.

Funding in 2025 was led by mid-stage rounds totaling $5.2 billion, followed by $3.9 billion in early-stage investments and $2.5 billion for later-stage companies. In addition, several Israeli firms went public during the year, collectively raising more than $10 billion.

Overall, the data point to a high-tech sector that is smaller in volume but stronger in value, reinforcing Israel’s position as a global hub for innovation and advanced technology.