By Steven Scheer
JERUSALEM, Dec 22 (Reuters) – Israeli high-tech companies raised $15.6 billion in private funding in 2025, up from $12.2 billion in 2024, Startup Nation Central said in a report on Monday citing preliminary data.
The tech sector, regarded as one of the largest in the world, accounts for about 20% of GDP, 15% of jobs and more than half of Israeli exports.
It has proved resilient, despite the war in Gaza, which began in 2023, when total funding was $10 billion.
Global giants, such as Nvidia, in 2025 said they would increase their physical and talent presence in Israel.
The number of funding deals, at 717, was the lowest in the last decade, but the deals were higher value. The median private deal, SNC said, reached a record $10 million – up 67% over 2024.
“2025 was not about a return to business as usual; it was a pivot toward high-conviction maturity,” said Avi Hasson, CEO of SNC.
M&A activity reached a record $74.3 billion in value, spread over 150 deals, the data showed.
It was led by Alphabet’s $32 billion purchase of cyber firm Wiz and Palo Alto Networks’ $25 billion acquisition of cyber rival CyberArk.
SNC said the level of M&A in Israel reflected multi-nationals’ efforts “to secure critical innovation”.
“These companies are effectively turning to Israeli startups into their next generation of R&D engines, laying the groundwork for additional acquisitions,” it said.
Funding for tech startups in 2024 was led by $5.2 billion for mid-stage rounds, followed by early-stage investments of $3.9 billion and $2.5 billion for later stages, SNC said.
A number of Israeli companies went public, raising more than $10 billion.
(Reporting by Steven Scheer; editing by Barbara Lewis)
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