Israel Tech Funding Surges To USD 11.9 Billion By Q3 2025
Israel’s tech sector raised USD 11.9 billion in the first three quarters of 2025, up 13% from the previous year, according to Startup Nation Central’s latest report. Despite a 22% decline in deal volume, investors showed growing confidence in scalable ventures, with median deal sizes climbing 50% year-over-year to a record USD 10.5 million.
M&A activity reached unprecedented levels, totalling USD 71 billion, nearly five times higher than in 2024. Exits hit USD 41 billion, driven by landmark deals such as Palo Alto Networks’ USD 25 billion acquisition of CyberArk, the second-largest transaction in Israel’s tech history. The cybersecurity sector dominated, accounting for 58% of total M&A value.
The report also noted renewed momentum in public markets, with eToro and Via Transportation completing successful IPOs. Avi Hasson, CEO of Startup Nation Central, described 2025 as a turning point — fewer rounds, but larger and more strategic investments underscoring continued global confidence in Israel’s innovation economy.
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