The final numbers are in from the PwC Israel Exits Report for 2025 (the final report has yet to be published but the PR was shared in the media), and the headline is absolutely staggering: The aggregate value of all tech exits and follow-on transactions hit a massive $89.8 Billion* (including large secondary transactions or acquisitions of previously exited companies). This is a 340% increase compared to 2024.
While this figure represents an extraordinary rebound, it secures the position as the second-largest aggregate value in Israeli tech history, surpassed only by the $100+ billion record set during the IPO boom of 2021. This record-setting year reveals a dual reality for the Israeli exit market: a top-tier dominated by mega-deals, and a bustling sub-market driven by the aggressive pursuit of young, AI-focused talent.
To fully appreciate this figure, it’s vital to understand the two components:
- New Exits (M&A and IPOs): This category, which includes initial sales of privately held companies, soared by 340% from the prior year to reach $58.8 billion.
- Follow-on Deals: Large secondary transactions and acquisitions of previously exited or public Israeli companies (like the $2.5B acquisition of Sapiens or the $2B acquisition of Verint) added approximately $31 billion to the total, cementing the final $89.8 Billion aggregate.
In lieu of the PWC final report, here’s some preliminary figures reported in Q3 by Startup Nation Central:
The Power of the Billion-Dollar Deal
The aggregate value is dramatically inflated by a handful of landmark transactions. The undisputed king of the year was the $32 billion acquisition of Wiz by Google, a singular event that reset the global benchmark for cybersecurity M&A. This, combined with the pending CyberArk deal and other massive transactions like the Next Insurance ($2.6B) and Melio ($2.5B) fintech exits, saw nine exceptionally large deals account for $53 billion of the new exit value.
Key Takeaways from the Top Tier:
- New Benchmarks: Deals like Wiz and CyberArk prove that Israeli tech has achieved true global scale and strategic importance, particularly in cybersecurity.
- The IPO Revival: The public market opened up significantly, with seven Israeli companies going public for a total valuation of $14.6 billion (up from just $781 million in 2024). Navan ($6.2B) and eToro ($4.4B) led the charge, signaling a healthy return to Wall Street.
The Race for AI: Fast, Small, and Strategic
Exclude the Wiz transaction, and the picture shifts dramatically. While the remaining deal value still doubled over 2024, the average acquisition size plummeted 40% to just $160 million.
This decline is explained by the proliferation of smaller, rapid-fire acquisitions of young companies. PwC recorded 22 transactions involving companies founded in the last three years, most of them valued under $50 million, and nearly half focusing on AI.
As Yaron Weizenbluth, PwC Israel’s Tech Partner, noted, these are not distressed sales but strategic ‘acqui-hires’—large tech firms making aggressive, often defensive, moves to secure small, efficient teams and critical AI capabilities.
Case in Point: Aim Security was sold to Cato Networks for $350 million before its third anniversary, and Base44 was snapped up by Wix for $80 million a year after founding. This trend highlights a new VC strategy: building AI-native companies that can command a fast, high-return exit based on talent and technology moat, rather than prolonged revenue growth.
A Market of Extremes
This ‘Great Bifurcation’ squeezed the middle of the market:
| Deal Size Category | % of Total Deals (2024) | % of Total Deals (2025) | Implication |
| Mega-Deals (>$500M) | Low (Value-heavy) | Value-Heavy | Dominate total value |
| Mid-Sized ($100M – $500M) | 44% | 25% | Sharp decrease in traditional growth-stage exits |
| Small/AI-Driven (<$100M) | High (Volume-heavy) | Volume-Heavy | Proliferation of quick exits, often for talent/IP |
Fintech and Cyber led the value rankings, but the sheer volume of deals was driven by AI & Cloud (20 transactions) and Cybersecurity (19 transactions).
Looking Ahead
2025 proved that Israeli tech can still deliver world-class returns. However, it also signaled a clear mandate for founders and VCs: focus on achieving mega-deal scale in critical sectors like Cyber and Fintech, or build an AI-first, capital-efficient machine for a rapid, strategic acquisition. The traditional mid-sized path has become significantly harder.
American acquirers remain dominant, executing 51% of all deals by number, yet the domestic ecosystem showed a doubling of “Blue and White” deals, an encouraging sign of local capital and companies maturing to become acquirers themselves.
For the VC community, the challenge is clear: spot the next Wiz early, or commit to the sprint-to-exit model dominating the AI landscape. There is no longer a soft middle ground.
He is a former General Partner at Google Ventures (GV) in Europe, former head of Google for Entrepreneurs in Europe, and founding head of Campus London, Google's first startup hub. Eze writes on Israeli tech, venture capital, artificial intelligence, and founder strategy.
He is also the founder of Techbikers, a nonprofit that brings together the startup ecosystem on cycling challenges in support of Room to Read.
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