Israeli tech rebounds as funding and exits climb, new report shows

Israel’s technology sector posted its strongest year since the global slowdown, with investment, exits and company formation all rising in 2025, according to a new report published today by IVC and LeumiTech.

The Tech Review 2025 found that Israeli tech companies raised $11 billion across 428 deals, marking a 14 per cent increase compared with 2024. Exit activity also accelerated over the year, reaching $17.7 billion across 182 transactions, as large acquisitions and late-stage deals returned to the market.

Cybersecurity and generative AI continued to dominate investor appetite, leading the largest funding rounds throughout 2025, the report said. Momentum strengthened as the year progressed, with Q4 fundraising hitting $3.67 billion, the strongest quarterly total recorded in the past three years.

After more than a decade of decline, the report also highlighted a rise in the number of newly established tech companies, signalling renewed confidence among founders despite ongoing geopolitical and macroeconomic uncertainty.

Taken together, the findings suggest that Israel’s tech ecosystem is entering a more stable phase, underpinned by a growing base of experienced founders, resilient capital flows and sustained global demand for advanced cyber and AI technologies.

The full report provides a detailed breakdown of funding trends, exit volumes and sector performance, alongside analysis of the structural shifts shaping the Israeli tech landscape as it moves into 2026.