Israeli Tech Surges with $15.6 Billion in 2025 Funding

After two years of downturn, Israeli high-tech is roaring back. In 2025, Israeli tech companies secured $15.6 billion across 717 private funding deals, marking a powerful resurgence even as the number of individual transactions hit a 10-year low. The figures, released by Startup Nation Central, signal renewed investor confidence and strategic interest in the nation’s cutting-edge industries.

While the volume of deals dropped, the quality soared. The median deal size skyrocketed to $10 million a 67% increase year-over-year highlighting a decisive shift toward larger, more concentrated investments. Notably, mega-rounds accounted for about half of all capital raised, reflecting a clear trend: investors are betting big on mature Israeli startups ready to scale globally.

Mergers and acquisitions also made headlines, totaling $74.3 billion across 150 transactions. Two deals alone Google’s $32 billion acquisition of cloud security firm Wiz and Palo Alto Networks’ $25 billion buyout of CyberArk drove much of the surge. Even excluding these giants, M&A activity rose 12% compared to 2024, a testament to the international appetite for Israeli innovation.

Cybersecurity continued to lead the way, pulling in $4.1 billion at a median deal size of $20 million. Business software topped the sectors in total funds raised, with $4.5 billion, while Health Tech saw the most deal activity, with 152 rounds.

Public markets also played their part, contributing $10.3 billion to the tech rebound. Major U.S. listings from Israeli-founded companies like Navan, eToro, and Via brought global attention back to the strengths of Startup Nation.

“Global corporations are moving decisively to secure critical innovation,” said Yariv Lotan, VP of product and data at Startup Nation Central. “Where the market sees risk, strategic buyers see opportunities.”

This resurgence is more than a financial story it's a national one. Israeli tech continues to thrive against the odds, reaffirming its place as a powerhouse of innovation, even amid geopolitical challenges. From Tel Aviv to Haifa, from cybersecurity to healthcare, the creativity and drive of Israel’s entrepreneurs remain unmatched.

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