The recovery of Israel’s economy now appears to be well underway, with the first half of 2025 marking the strongest six-month period for Israeli tech funding in the past three years, according to a mid-year analysis published by Startup Nation Central.
The analysis was based on data from the Finder business platform.
“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,” Startup Nation Central CEO Avi Hasson commented.
“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.”
According to the report, private capital that was raised reached an estimated $9.3 billion – a 54 percent jump compared to the second half of 2024.
Although the recovery began in late 2024, things accelerated in the second quarter of 2025, with funding nearly doubling from $3.3 billion in the first quarter to $6 billion in the second quarter.
Larger rounds are becoming more common. 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.
Early-stage recovery is evident, with pre-seed and seed funding up 50 percent to $607 million. There was also a 60 percent increase in Series B and C funding, not including the SSI raise.
The overall number of deals decreased by 10 percent compared to the second half of 2024; however, the median round size grew by 28 percent to $9 million, demonstrating rising investor confidence in mature startups.
All this, despite the number of rounds having dropped from 214 to 151.
Mergers and acquisitions 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 percent led by global strategic buyers and 42 percent by local acquirers.
Public funding also showed momentum. There were 13 transactions totaling $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 percent.
A total of 447 investors have invested in Israel in the first half of 2025, representing a 12 percent decrease from the previous six months. But despite the ongoing regional conflict, global investors continued to dominate with a share of 62 percent.
The share of rounds with global investor participation increased eight percentage points from 61 percent in H2 2024 to 69 percent. iAngels and Pitango were the most active Israeli investors with 15 each.
The full report is to be released in mid-July with deeper sector trends, international comparisons, and perspectives from across Israel’s tech ecosystem.
