Israeli Tech Funding Reaches $9.3B in First Half of 2025, Highest in Three Years

Israeli tech is bouncing back stronger than ever, with private capital investment reaching an estimated $9.3 billion in the first half of 2025—marking the strongest six-month performance for the industry in three years. The figures, published in a mid-year analysis by Startup Nation Central, show a 54% increase compared to the second half of 2024, signaling growing global investor confidence in Israeli innovation despite ongoing regional challenges.

The data, drawn from Startup Nation Central’s Finder business platform, highlights a surge in deal size rather than volume. While the total number of funding rounds fell from 214 in Q1 to 151 in Q2, the amount raised nearly doubled—from $3.3 billion to $6 billion—pointing to a clear trend of larger, more strategic investments.

Among the standout deals was a massive $2 billion Series B round by Safe Superintelligence (SSI), one of the largest in Israeli history. In total, 32 rounds exceeded $50 million, up from 20 in the previous period.

Sector-wise, enterprise software led the pack with $3.19 billion raised across 71 rounds. Cybersecurity came close behind with $1.98 billion from 56 deals—though without the SSI megadeal, cyber would have taken the top spot. Fintech ranked third with $751 million, largely driven by a $500 million round by Rapyd. Health tech saw the highest number of rounds (69), though funding remained modest at $623 million, mostly concentrated in early-stage startups.

Early-stage investment is also showing strong signs of recovery. Pre-seed and seed funding rose 50% to $607 million, while Series B and C rounds (excluding the SSI deal) saw a 60% increase. Though the total number of deals dropped 10% compared to the previous half-year, the median round size jumped 28% to $9 million, underscoring a shift toward fewer but higher-quality investments.

“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,” said Avi Hasson, CEO of Startup Nation Central. “Just last month, during the lead-up to and throughout the campaign against Iran, we saw 31 funding rounds—clear evidence that entrepreneurs are still building, and investors remain confident.”

Beyond private funding, M&A activity skyrocketed to a record $39.2 billion, largely due to Google’s $32 billion acquisition of cybersecurity firm Wiz. Even excluding that mega-deal, M&A value remained steady at $7.2 billion. Notable additional acquisitions included Next Insurance ($2.6 billion) and Melio ($2.5 billion). A total of 60 first-time acquisitions were recorded—the highest since early 2022—with global strategic buyers leading over half of them.

Public funding also gained momentum, growing from $200 million in H2 2024 to $1.6 billion across 13 transactions in H1 2025. The long-awaited IPO of eToro on Nasdaq marked a milestone, with its stock soaring more than 30% on its debut.

Despite the region’s instability, international investor interest remains strong. Out of 447 active investors in the Israeli tech ecosystem this year, 62% were from outside Israel, and their participation in funding rounds increased to 69%. Among local investors, iAngels and Pitango topped the activity charts with 15 deals each.

“We’re seeing fewer deals, but each one is more meaningful,” said Yariv Lotan, VP of Digital Products and Data at Startup Nation Central. “Even at the earliest stages, we’re seeing signs of a rebound, reinforcing the ‘startup baby boom’ we noted at the end of 2023.”

The full H1 2025 report is set to be released in mid-July, offering deeper insights into sector-specific trends and the evolving landscape of Israeli tech on the global stage.