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Israeli startups raise $3.15b in first five months of 2025

May’s $550M in funding reflects a slowdown from last year’s pace

Visitors at the annual Cybertech Israel Conference and Exhibition, in Tel Aviv, attended by thousands of leading multi-national corporates, small and medium-sized businesses, startups, private and corporate investors, venture capital firms, experts and clients. Jan. 29, 2020. Photo by Miriam Alster/Flash90.
The annual Cybertech Israel Conference and Exhibition in Tel Aviv, attended by thousands of leading multi-national corporates, small and medium-sized businesses, startups, private and corporate investors, venture capital firms, experts and clients. Jan. 29, 2020. Photo by Miriam Alster/Flash90.

Israeli startups secured $3.15 billion in funding during the first five months of 2025, Israeli business daily Globes reported on Tuesday.

This figure, while substantial, indicates a tempered pace compared to previous years. In May alone, startups raised $550 million, a significant dip from the more than $1.4 billion raised in May 2024, which was bolstered by Wiz’s record-setting $1 billion round.

Notable funding rounds in May 2025 included:

  • AI21 Labs: $300 million Series D
  • Classiq (quantum software): $110 million Series C
  • Orca AI (maritime tech): $72.5 million
  • Empathy (grief support): $72 million
  • Ox Security (cybersecurity): $60 million
  • Kela: $60 million
  • PhaseV: $50 million

These seven deals accounted for over 85% of May’s total funding, highlighting a concentration of investment in a few high-profile companies.

Despite the month-over-month decline, the cumulative $3.15 billion raised in 2025 suggests resilience in Israel’s tech sector amid global economic uncertainties.

However, the current trajectory indicates that total annual funding may fall short of 2024’s $9.58 billion, which itself was a decrease from the $15 billion raised in 2022 and the record $25.6 billion in 2021.

The slowdown reflects a broader global trend of cautious investment, yet Israel’s tech ecosystem continues to attract significant capital, particularly in sectors like AI, quantum computing and cybersecurity.

Jewish News Syndicate (JNS) is the fastest-growing news agency covering Israel and the Jewish world. We provide news briefs features opinions and analysis to 100 print newspapers and digital publications on a daily basis.
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