$15.6 Billion In, $74 Billion Out: Inside Israel's 2025 Capital Cycle
Two numbers define the year. Per Startup Nation Central, Israeli tech raised $15.6 billion in 2025 and produced $74.3 billion in M&A across 150 transactions — one of the most active capital cycles since 2021.
Capital concentrated
Funding rounds dropped to 717 — the lowest level in a decade — while half of all capital raised went into deals above $100 million. In 2024, mega-rounds accounted for 41% of total fundraising; in 2023, just 22%. Median deal size rose to $10 million in H1 2025, an all-time high for the ecosystem.
The market composition changed materially. "While early-stage founders face tougher funding conditions, global corporations are moving decisively in the opposite direction," Yariv Lotan of Startup Nation Central told the press at the year-end report.
Where the capital went
Two sectors absorbed roughly 70% of 2025 fundraising. Enterprise software, including AI applications, led with $4.5 billion. Cybersecurity followed at $4.1 billion. Healthcare recorded a record 152 funding rounds, the highest of any sector.
The mega-rounds that moved the year
- Cyera — $400 million at a $9 billion valuation, Blackstone-led, sixfold valuation increase in just over a year
- Armis — $435 million in November 2025, ahead of a planned IPO; reportedly in advanced talks with ServiceNow at up to $7 billion
- Eon — $300 million Series D at a $4 billion valuation
- 7AI — $130 million Series A — record-size first round, raised by former Cybereason founders
- Heven AeroTech — $100 million at a $1 billion valuation, IonQ-led — Israel's first defense-tech unicorn
- Wonderful — $100 million Series A four months after a $34 million Seed
- Majestic Labs — $90 million Series A from ex-Google and Meta executives
The M&A composition
Wiz at $32 billion and CyberArk at $25 billion together represent $57 billion of the $74.3 billion total M&A. The remaining $17 billion across 148 transactions still represents a 12% increase over 2024 excluding the two headline deals.
Other 2025 transactions: Sentrycs to Ondas Holdings ($225M), General Robotics to Sig Sauer, Carbyne to Axon ($625M), Run:ai to Nvidia, Iguazio to McKinsey/QuantumBlack.
The IPO return
Per Ynet, eToro debuted on Nasdaq on May 14, 2025, at a $4.3 billion IPO valuation; the stock surged nearly 29% on its first trading day, briefly reaching a market cap above $5.5 billion. The offering raised $712 million including the greenshoe.
Per Calcalist, Navan listed on Nasdaq under ticker NAVN on October 30, 2025, raising $923 million at an implied $6.21 billion valuation — though the stock dropped 20% on its first trading day amid US government shutdown timing complications. Navan was the third Israeli technology company to go public in 2025, following Via and eToro.
Combined with convertible bond offerings from Wix and Check Point — Check Point's first capital raise since its IPO three decades ago — public-market activity contributed an additional $10.3 billion.
What's driving foreign capital
Israel's growth rate stood out globally in H1 2025: private funding rose 62% versus H2 2024, while the United States rose 23%, Europe declined 20%, and Asia declined 42%.
Avi Hasson, CEO of Startup Nation Central, framed the year directly: "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 $74.3B 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."
Source data: Startup Nation Central 2025 Annual Report, IVC-LeumiTech, PwC Israel, SEC filings, Calcalist, Globes, Times of Israel, Bloomberg, Reuters.
