Israeli technology companies experienced a significant rebound in the first half of 2025, with private capital investments totaling an estimated $9.3 billion—the strongest six-month performance in three years. According to a mid-year report by Startup Nation Central, this represents a 54% increase compared to the second half of 2024, demonstrating sustained global investor confidence despite ongoing regional instability.
The data shows a shift toward fewer but larger funding rounds. While the number of rounds dropped from 214 in Q1 to 151 in Q2, the total amount raised nearly doubled from $3.3 billion to $6 billion. Notably, Safe Superintelligence (SSI) closed a $2 billion Series B round, one of the largest ever in Israel. In total, 32 funding rounds exceeded $50 million, up from 20 in the previous period.
Sector-wise, enterprise software led funding with $3.19 billion raised across 71 rounds, followed by cybersecurity with $1.98 billion in 56 deals (or first place excluding SSI’s megadeal). Fintech raised $751 million, largely driven by Rapyd’s $500 million round. Health tech had the highest number of rounds (69), though with relatively modest funding of $623 million concentrated mostly in early-stage startups.
Early-stage investments showed strong recovery, with pre-seed and seed funding up 50% to $607 million. Series B and C rounds (excluding SSI) increased by 60%. Despite a 10% drop in deal volume compared to the previous half-year, the median round size rose 28% to $9 million, reflecting a preference for fewer but higher-quality investments.
Mergers and acquisitions activity surged to a record $39.2 billion, largely driven by Google’s $32 billion purchase of cybersecurity firm Wiz. Excluding that mega-deal, M&A value remained steady at $7.2 billion. Other significant acquisitions included Next Insurance for $2.6 billion and Melio for $2.5 billion. First-time acquisitions hit a high with 60 deals, mostly led by global strategic buyers.
Public funding also increased markedly, from $200 million in H2 2024 to $1.6 billion across 13 transactions in H1 2025. The IPO of eToro on Nasdaq was a notable milestone, with shares rising over 30% on debut.
International investor participation remains strong, accounting for 62% of the 447 active investors in Israeli tech and 69% of funding rounds. Leading local investors include iAngels and Pitango, each active in 15 deals.
Despite geopolitical challenges, the Israeli tech ecosystem shows resilience and growing maturity, with investors focusing on strategic, large-scale funding that supports long-term innovation.
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