Israeli tech is back—and the numbers prove it. According to a mid-year analysis by Startup Nation Central, private capital investment in Israeli startups reached $9.3 billion in H1 2025, the strongest half-year showing since the 2021 boom. That’s a 54% jump from H2 2024, marking a clear vote of confidence from global investors despite regional instability.
What’s driving the momentum? Bigger deals, fewer rounds. While the number of funding rounds declined, the capital raised nearly doubled quarter-over-quarter—from $3.3B in Q1 to $6B in Q2. The standout was Safe Superintelligence (SSI), which closed a record-breaking $2 billion Series B, one of the largest in Israeli history.
Other highlights include:
- 32 mega rounds (over $50M), up from 20 in the previous half.
- Enterprise software led with $3.19B across 71 deals, followed by cybersecurity ($1.98B) and fintech ($751M, including a $500M raise by Rapyd).
- Health tech had the most deals (69) but modest funding at $623M.
- Pre-seed and seed funding rose by 50% to $607M, signaling renewed support for early-stage innovation.
The median round size jumped to $9M, showing a clear trend: quality over quantity. Investors are doubling down on companies they already know and trust—follow-on investments are on the rise.
M&A activity also hit a high, totalling $39.2 billion, propelled by Google’s $32B acquisition of Wiz. Even without the mega-deal, M&A remained strong at $7.2B, with other major exits like Next Insurance ($2.6B) and Melio ($2.5B).
Public markets are thawing too. IPO activity surged to $1.6B across 13 deals, headlined by eToro’s long-awaited Nasdaq debut, which jumped 30% on day one.
International investors played a key role: 62% of the 447 active investors in H1 2025 were non-Israeli, and 69% of rounds included at least one global backer.
As Avi Hasson, CEO of Startup Nation Central, put it:
“Even during the escalation with Iran, we recorded 31 funding rounds. Founders are building. Investors are backing them. Israeli tech is not just resilient—it’s resurging.”
The full H1 report, due mid-July, will provide further insights into sector trends, early-stage signals, and Israel’s evolving role in global innovation. There’s a lot of potential to Defence tech following this war, but one thing is already clear: as a tech ecosystem, Israel is back on offence.
I'm a former general partner at google ventures, head of Google for Entrepreneurs in Europe and founding head of Campus London, Google's first physical hub for startups.
I'm also the founder of Techbikers, a non-profit bringing together the startup ecosystem on cycling challenges in support of Room to Read. Since inception in 2012 we've built 11 schools and 50 libraries in the developing world.
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