The Media Line: Israeli Tech Funding Surges to $15.6B as M&A Activity Hits Record $74B  

Israeli Tech Funding Surges to $15.6B as M&A Activity Hits Record $74B  

By The Media Line Staff  

Israel’s tech sector staged a strong rebound in 2025, with private funding climbing to an estimated $15.6 billion and mergers and acquisitions reaching a record $74.3 billion, according to early figures from Startup Nation Central.  

Despite the surge in capital, deal count dropped to 717, the lowest in a decade, highlighting a clear investor shift toward fewer, larger bets. The median private deal hit $10 million, a 67% increase year over year, indicating a recalibration from hypergrowth to scale and maturity.  

Mega-rounds alone made up roughly half of the year’s total funding. “2025 was not about a return to business as usual; it was a pivot toward high-conviction maturity,” said Avi Hasson, CEO of Startup Nation Central. He pointed to expanded investment by companies like Nvidia as evidence that Israel continues to serve as a strategic hub for innovation in AI and cybersecurity.  

Business Software led private funding with $4.5 billion, followed by cybersecurity at $4.1 billion. While cybersecurity had fewer deals, its median round size reached $20 million— double that of business software. Health tech recorded the most rounds at 152, reflecting breadth even as capital concentrated elsewhere.  

In the M&A landscape, just two transactions—Google’s $32 billion acquisition of Wiz and Palo Alto Networks’ $25 billion purchase of CyberArk—accounted for most of the value. Even excluding those deals, M&A value rose 12% from 2024, with 150 total transactions.  

“We are seeing a growing gap between public sentiment and corporate behavior,” said Yariv Lotan, VP of Product and Data. “Where the market sees risk, strategic buyers see opportunities they cannot afford to miss.”  

Mid-stage funding surged to $5.2 billion, while early-stage investments recovered to $3.9 billion on fewer rounds. Late-stage funding fell to $2.5 billion, suggesting greater selectivity at the top.  

Public company funding also gained momentum, totaling $10.3 billion, driven by high-profile US offerings from firms like Navan, eToro and Via.  

The report’s early data, based on Startup Nation Finder platform activity through Dec. 17, will be finalized in early 2026.