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Israeli tech rebounds with $15.6 billion in funding

Mergers and acquisitions surged in 2025, while private funding shifted to fewer, larger deals focused on scale-ready, high-conviction companies.

Tel Aviv
The Tel Aviv skyline, with several high-rise buildings under construction, on July 6, 2025. Photo by Shahar Yaari/Flash90.

Israeli technology companies raised $15.6 billion in private funding across 717 deals in 2025, marking a rebound after two years of decline but representing the lowest deal count in a decade, according to early data from Startup Nation Central released on Monday.

The median deal size hit a record $10 million, up 67% year-over-year, as investors concentrated capital in fewer, larger investments. Mega-rounds captured approximately 50% of total funding, signaling a shift toward backing more mature companies.

Mergers and acquisitions reached $74.3 billion across 150 transactions, driven by Google’s $32 billion acquisition of Wiz and Palo Alto Networks’ $25 billion purchase of CyberArk. Excluding those deals, mergers and acquisitions value still rose 12% from 2024.

Cybersecurity led sector performance with $4.1 billion raised at a $20 million median deal size, while Business Software captured $4.5 billion. Health Tech recorded the highest deal volume with 152 rounds.

Public market funding totaled $10.3 billion, including major U.S. listings from Navan, eToro and Via.

“Global corporations are moving decisively to secure critical innovation,” said Yariv Lotan, VP of product and data at Startup Nation Central. “Where the market sees risk, strategic buyers see opportunities.”

The data, based on deals through Dec. 17, may change as additional transactions are finalized by Jan. 1.

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