Estimated private funding raised by Israeli tech companies in 2025 has reached $15.6 billion, signaling a decisive rebound after two volatile years, Startup Nation Central (SNC) reports. At the same time, deal volume declined to 717 rounds, the lowest in the last decade. SNC says this divergence tells a clear story: investors are doing fewer deals but committing significantly more capital to each one. The median private deal size reached a record $10 million, up 67% from 2024, reflecting a market that has recalibrated toward scale, maturity, and higher conviction.
SNC CEO Avi Hasson says, “2025 was not about a return to business as usual; it was a pivot toward high-conviction maturity. When we see global giants like Nvidia doubling down on their physical and talent presence here, alongside a record $74.3 billion in M&A activity, it confirms that Israel isn’t just a source of innovation, it is the global anchor for critical technologies like AI and cybersecurity.”
Early-stage investment recovered to $3.9 billion, even as the number of rounds declined, indicating continued support for new company formation, but with higher thresholds. Mid-stage funding jumped to $5.2 billion, driven by larger B and C rounds, while late-stage funding moderated to $2.5 billion, reflecting a more selective approach at the top of the funnel. Mega-rounds accounted for 50% of total private funding, underscoring the growing concentration of capital.
SNC VP Product and Data Yariv Lotan says, “We are seeing a growing gap between public sentiment and corporate behavior. While early-stage founders face tougher funding conditions, global corporations are moving decisively in the opposite direction. The record M&A activity reflects a strategic push by multinationals, including first-time acquirers, to secure critical innovation. By moving past short-term market noise, these companies are effectively turning Israeli startups into their next generation of R&D engines, laying the groundwork for additional acquisitions. Where the market sees risk, strategic buyers see opportunities they cannot afford to miss.”
Business software led private funding with $4.5 billion, followed closely by cybersecurity with $4.1B, where the median deal size reached $20 million, double that of business software. Healthtech posted the highest deal volume with 152 rounds, highlighting continued innovation depth even as capital concentrated elsewhere.
Investor participation narrowed, with 592 active investors, while global investors continued to represent 60% of the total, signaling ongoing international confidence.
Total mergers and acquisitions value reached $74.3 billion in 150 deals, led by Google’s $32 billion acquisition of Wiz and Palo Alto Networks’ $25 billion acquisition of CyberArk. Excluding those two deals, M&A value still rose 12% compared to 2024, pointing to sustained strategic demand for Israeli technology.
After SNC’s report was issued, US enterprise software company ServiceNow announced that it is buying Israeli cybersecurity company Armis for $7.75 billion in cash.
At the same time, total IPO funding grew significantly and reached $10.3 billion, led by major US-listed offerings including Navan, eToro, and Via, alongside strong activity in PIPEs and convertible bonds.
Published by Globes, Israel business news – en.globes.co.il – on December 23, 2025.
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