Israel’s high‑tech sector showed signs of recovery in 2025, with total fundraising rising to 15.6 billion dollars, a 27.9‑percent increase from the previous year, according to an annual report released Monday.
The total slightly exceeded the 15.5 billion dollars raised in 2022 — before Israel’s multifront tensions escalated following the October 2023 Hamas attack — and marked a sharp rebound from the 8.3 billion dollars recorded in 2023, the report by the nonprofit Startup Nation Central said.
Despite the rise in capital, the number of investment rounds fell to 717, the lowest in a decade, suggesting investors are making fewer but larger deals, the report said.
Enterprise software drew the most funding at 4.5 billion dollars, followed by cybersecurity at 4.1 billion dollars. Health tech led in deal count with 152 transactions.
Exit and merger activity surged, with total deal value reaching 74 billion dollars, the highest since 2018. The jump was driven largely by Google’s 32‑billion‑dollar acquisition of Israeli cybersecurity firm Wiz and Palo Alto Networks’ 25‑billion‑dollar purchase of Israeli information security company CyberArk Software.
The report said the record‑setting deals reflect strong global confidence in Israeli high‑tech companies and their long‑term prospects.