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Israeli tech sector raises $3b in funding in Q1 of 2025

More than 40% of the total private funding was in investments of more than $100 million each, known as mega-rounds.

Illustrative photo of 200-shekel bills. Photo by Nati Shohat/Flash90.
Illustrative photo of 200-shekel bills. Photo by Nati Shohat/Flash90.

Israeli tech firms received more than $3 billion in private funding in the first quarter of the year, in a sign of long-term investor confidence despite the 18-month-old war against Hamas in Gaza, an Israeli nonprofit promoting innovation announced on Monday.

Some $3.2 billion was invested in Israeli high-tech in the first quarter of the year, according to Startup Nation Central. More than 40% of the total private funding was in investments of more than $100 million each, known as mega-rounds.

About 25% of the investments were in the cybersecurity sector, where Israel ranks as a world leader.

While the number of active investors declined by 16% from the previous quarter, the investment total increased.

There was also a record-breaking $35 billion M&A activity in the first quarter of the year, with Google’s acquisition of Wiz accounting for a whopping $32 billion, more than twice the previous record held by Mobileye.

“What we saw in 2024 and continuing into 2025 is that the Israeli hi tech sector is very resilient and continues to deliver which is the opposite of what people would expect considering the war and the number of days Israeli hi tech workers serve in the military reserves,” Yariv Lotan, Vice President of Digital Products and Data at Start up Nation Central, told JNS on Monday.

The peak year for foreign investment in Israeli high-tech was in 2021, with more than $30 billion in funding.

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