LeumiTech, the high-tech banking arm of Bank Leumi, and IVC, a data, quantitative research, and business intelligence provider, today published preliminary findings from the Israeli Tech Review Q4 2025 and full-year report. The full report will be released in the first half of January 2026.
According to IVC data, as of December 22, Israeli technology companies raised $11.1 billion during the year in 418 funding rounds. This represents a 15% increase in capital raised compared to 2024, alongside a 9% decline in the number of disclosed funding rounds.
Maya Eisen Zafrir, CEO of LeumiTech, said, “The past year reflects the resilience and continued growth of Israeli tech, despite a prolonged period of uncertainty and turbulence on both the local and global fronts.”
She added, “The capabilities and reputation Israel has built over recent decades in cybersecurity, together with the leadership we are seeing in AI, constitute a force multiplier and a strategic asset for Israel. The AI revolution is not only driving the market forward, but also creating new needs in data protection and privacy.”
Taking into account funding rounds whose details remain undisclosed (stealth rounds) or may be revealed later, IVC estimates that 1,000–1,100 funding rounds were completed in 2025.
The final number of rounds (black line) refers to the total for the period and differs from the normalized number of rounds used for trend analysis in the report (red line). See IVC’s report methodology for further details.
In the fourth quarter, capital raised totaled $3.43 billion across 94 disclosed rounds, a 45% increase in funding volume compared to Q3, alongside a 25% decline in the number of rounds. Including undisclosed rounds, IVC estimates that 200–210 funding rounds took place during the quarter.
Four large funding rounds exceeding $200 million were reported in Q4, accounting for approximately 42% of total quarterly fundraising:
Armis raised $453 million; Cyera raised $400 million; Deel raised $300 million (the company operates a significant R&D center in Israel and is therefore included despite its indirect Israeli connection); and Eon IO also raised $300 million.
Throughout the year, nine mega-rounds exceeding $200 million were completed, led by Cyera, which raised an exceptional $940 million in two rounds in May and December. Excluding rounds above $200 million, total capital raised in 2025 still increased by 18% compared to 2024.
Exits rebound strongly in 2025
The year also stood out in terms of exits, concluding with 180 acquisitions and IPOs totaling $17.7 billion. In addition, 13 acquisition deals are currently in the closing process—announced but not yet finalized due to regulatory approvals—which could add approximately $63 billion, bringing total exit value close to $80 billion.
Among the pending deals are the standout acquisitions of Wiz by Google for approximately $32 billion, and CyberArk by Palo Alto Networks for around $27 billion. The impressive volume of M&A activity brings the sector back to the levels seen between 2017 and 2020, reinforcing optimistic expectations for meaningful investor returns in the coming years.
Cybersecurity and generative AI dominate
Funding rounds in cybersecurity and generative AI companies were dominant throughout 2025. Forty percent of all funding rounds took place in these sectors, which together accounted for approximately 70% of all capital raised. Fintech and defense tech companies also stood out during the year, albeit at more moderate funding levels.
Cyber companies continued to attract exceptional attention in 2025, reflected in several mega-deals. However, excluding unusually large rounds (over $100 million each), cyber fundraising in 2025 exceeded even the strong levels recorded in 2021, a peak year for the sector.
Investor behavior
Throughout 2025, venture capital investors favored follow-on investments in existing portfolio companies over first-time investments in new companies. A significant gap emerged in investor participation: while the number of VC investors involved in follow-on rounds increased, the number of investors participating in initial investments declined over the course of the year.
Guy Holtzman, Chairman of IVC, said, “2025 concluded with an exceptional achievement on the exits front. After several years of slowdown, M&A activity returned to—and even surpassed—the levels seen at the end of the previous decade. In addition, the mega-deals involving Wiz and CyberArk, despite not yet being completed, provide strong tailwinds for investors and reinforce confidence that Israeli high tech is sufficiently robust to meet expectations even in challenging periods. We believe this positive sentiment will continue into next year.”