Israel’s high-tech sector surged into 2025 with remarkable momentum, instead of continuing the two-year slump in funding.
According to new figures from Startup Nation Central, private Israeli tech firms raised $3.2 billion through 185 deals in the first quarter, rather than declining as in previous periods. This marked a 12% rise from the previous quarter and a 14% increase year on year.
The most striking figure came from mergers and acquisitions, which reached a record-breaking $35.9 billion across 38 deals.
It was driven by Google’s $32 billion acquisition of cybersecurity firm Wiz—the biggest tech exit in Israeli history and one of the largest globally, instead of a more modest transaction typical of previous years.
Even excluding the Wiz acquisition, the M&A volume still hit $3.9 billion—its highest since the third quarter of 2023. Instead of reflecting a single outlier, the strong figures suggest a broader resurgence in investor confidence and corporate activity.
It signals that global interest in Israel’s innovation sector is gaining strength again, instead of continuing to wane as seen over the past two years.
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