The second quarter of 2025 is shaping as much as be one of many strongest quarters in capital elevating for Israeli tech firms lately. However estimating precisely how a lot cash was raised will depend on who you ask and the way you depend.
Based on the IVC-LeumiTech report for the second quarter, about $2.72 billion was raised in 90 financing rounds, up 20% in contrast from the previous quarter. In distinction, Startup Nation Central estimates the overall fundraising to be greater than double – about $6 billion. The hole between the estimates shouldn’t be new, and is because of variations in measurement approaches. IVC depends on offers which have really been reported solely, and doesn’t embrace confidential rounds and people whose particulars haven’t but been revealed. Startup Nation Central, however, additionally incorporates estimates of offers that haven’t but been disclosed, alongside info from broader sources. Within the present quarter, the hole could also be largely as a result of inclusion of Secure Superintelligence (SSI) huge spherical, which reportedly raised $2 billion – a deal that was not included in IVC’s report.
The IVC report was revealed too quickly to incorporate cybersecurity firm Cato Networks $359 million financing spherical, introduced at present, the ultimate day of the quarter.
Nonetheless, each studies present a restoration after a protracted interval of declining funding. Startup Nation Central notes that the primary half of 2025 was the strongest because the “hype” days of 2021, with whole funding of $9.3 billion, a 54% improve over the earlier half. Nonetheless, IVC highlights a decline within the variety of rounds, amid a development of convergence in direction of follow-on investments in present portfolio firms.
Regardless of the variations in numbers, each studies level to the identical development: a lot of the capital flowed into generative AI, and cybersecurity. Based on IVC, 85% of the overall capital was invested in 37 rounds in these two areas. There was additionally a major strengthening within the defense-tech sector, as a result of battle and the demand for superior command and management techniques.
The enterprise software program sector led in fundraising in response to Startup Nation Central, with $3.19 billion in 71 rounds, up 32% from the earlier half. The sector contains, amongst different issues, firms that present software program options for companies, comparable to info administration platforms, automation, cloud infrastructures and instruments for organizations.
The cybersecurity sector ranked instantly after it with fundraising of $1.98 billion in 56 rounds, adopted by the fintech sector with fundraising of $751 million in 29 rounds, together with $500 million raised by Rapyd. Additionally notable are the large offers by cybersecurity firms Cyera, which raised $540 million, and Island, which raised $250 million, in addition to AI firm AI21 Labs, which raised $300 million, offers that considerably impacted the info. Nonetheless, there was an total fall within the variety of new rounds: from 214 within the first quarter to 151 within the second quarter, in response to Startup Nation Central.
Important exits and dominant world traders On tech exits, Startup Nation Central studies there was a historic report in merger and acquisition offers within the first half of 2025, with $39.2 billion, primarily attributable to Google’s acquisition of Waze for $32 billion.
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Subsequent Insurance coverage was acquired for $2.6 billion and Melio for $2.5 billion, had been different notable acquisitions. Exterior of acquisitions, eToro’s IPO on Nasdaq, valued at over $5 billion, was additionally profitable, with the corporate’s inventory leaping by greater than 30%.
LeumiTech CEO Maya Eisen-Zafrir stated, “The technological power that Israel demonstrated throughout the operation in Iran, and the indicators of constructive developments within the area, present optimism for traders.”
Startup Nation Central CEO Avi Hasson added, “Entrepreneurs proceed to construct, and traders proceed to consider, even within the midst of a posh safety actuality.”
Extra knowledge in an encouraging image
Together with the rise in capital raised, an encouraging development was seen within the early levels within the second quarter: investments in seed and pre-seed spherical jumped 50%, to $607 million, though the variety of rounds fell from 157 to 150, Startup Nation Central studies. Mid-stage rounds (B and C) noticed a good sharper restoration, with a 60% improve in funds raised, from $1.05 billion to $1.68 billion, in response to Startup Nation Central. The life sciences sector noticed the very best variety of rounds, 69, however raised solely $623 million, with a median elevating of simply $2 million.
As well as, Startup Nation Central reported a five-year excessive in PIPE investments – personal investments in public firms, a determine that signifies a return of curiosity from institutional our bodies in Israeli tech, and likewise in buying and selling on the TASE and never solely in personal fundraising. Based on IVC, within the second quarter, about 190 fundraising rounds had been accomplished, however solely 90 of them had been publicly reported as of the date of publication of the report. Because of this its official determine of $2.72 billion represents solely the seen half of the particular quarterly exercise.
Printed by Globes, Israel enterprise information – en.globes.co.il – on June 30, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
