Israel High-Tech Sees Mixed Signals
The IVC–GNY–KPMG Investors Report for H1 2025 shows that Israel’s high-tech industry faced reduced first-time investments and new capital raising during a period marked by war and economic pressures.
Only 12 new venture capital funds launched in the first half of the year, and foreign investors scaled back activity. Israeli investors, however, continued to participate at consistent levels.
Despite the headwinds, momentum remains strong in generative AI, fintech, cybersecurity, and defense technologies. The Israel Innovation Authority introduced the Startup Fund and Yozma 2.0 to bolster liquidity, while Israeli venture capital funds still hold about USD 11 billion available for investment.
According to Yuval Horn, Chair of GNY’s Technology and Life Sciences Practice, clients are increasingly exploring fund formation and limited partner opportunities.
The report underscores both challenges and opportunities shaping Israel’s innovation ecosystem.
Gornitzky, in collaboration with KPMG Israel and IVC Data and Insights, continues to track developments in the market.
Learn more here.
