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Israeli Tech Sees Strongest Half Since 2021 Hype Cycle, Led by Enterprise Software, Historic M&As, Lower Number of Rounds, and Late-Stage Resilience

TEL AVIV, Israel, July 2, 2025 /PRNewswire/ -- Startup Nation Central, a nonprofit promoting the Israeli innovation ecosystem globally, has released a mid-year analysis based on data from the Finder business platform, revealing that the first half of 2025 marked the strongest six-month period for Israeli tech funding in three years. Private capital raised reached an estimated $9.3 billion, a 54% jump compared to the second half of 2024. This recovery, which began in late 2024, accelerated in Q2 2025, with funding rising from $3.3 billion in Q1 to $6 billion in Q2, despite a decrease in the number of rounds from 214 to 151.

Larger rounds are becoming more common. The number of rounds exceeding $50 million rose from 20 to 32. Among them was the $2 billion Series B round by Safe Superintelligence, one of the largest in Israel's history.

Enterprise software led all sectors with $3.19 billion across 71 rounds. Cybersecurity followed with $1.98 billion across 56 deals. Without the Safe Superintelligence (SSI) megadeal, cyber would have led the category. Fintech was third, with $751 million across 29 rounds, including a $500 million raise by Rapyd. Health tech had the highest number of rounds (69) but a lower total of $623 million, mostly early-stage.

Early-stage recovery is evident, with pre-seed and seed funding up 50% to $607 million. There was also a 60% increase in Series B and C ...