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Ecosystem Landscape

Optional H3

In the first three quarters of 2025, Israel’s high-tech private funding sector recorded fewer funding events but larger deal sizes. The number of private funding rounds year-over- year declined from 677 to 529, while total capital raised grew by 26% to $11.6B. Public funding events rose 15% with a nearly fourfold increase in value from $1.1bn to $4bn. Merger and acquisition (M&A) activity also strengthened, with 104 transactions compared to 77, and disclosed deal value rising nearly 6 times to $71.1bn from $12.4B in the same period of 2024. First time M&A activity saw a 38.2% boost in the number of events and a fourfold increase in value from $10.1bn to $41bn.

Initial public offering(IPO) activity moderated in volume but not in scale. Four companies went public compared to 7 in the prior year period, while total transaction values surged 12 times from $97M to $1.2B. These developments point to a shift toward fewer but larger transactions across funding, public markets, and IPOs, alongside early-stage exits at smaller valuations. The data indicate a continued recalibration of capital flows within Israel’s innovation ecosystem.

Private Companies

Private Funding Trends

Optional H3

In Q3 2025, Israel’s private tech sector raised an estimated $2.56B across 162 funding rounds, with a median round size of $10.5M. Compared to Q2 2025, both deal values and activity contracted, with total capital raised declining 12% (excluding the $2B Safe Superintelligence round) and the number of rounds were down 23%. These shifts are consistent with an ongoing adjustment in global and domestic investment patterns, where capital is concentrated in fewer but larger transactions.

Early-stage funding showed a mixed picture. While the number of early-stage rounds decreased from 96 in Q2 to 85 in Q3, total capital invested increased by 45% to $982M. Convertible debt and other non-equity instruments also expanded in scale: despite a decline in round count from 50 to 33, invested capital declined from $231M in Q2 to $228M in Q3. Since 2021 structural changes in the market have extended the average time between fundraising cycles and this is reflected in Q3 2025. outcomes point to a longer-term trend toward fewer but larger transactions, with emphasis on company maturity and selectivity in capital allocation.

Selective, Higher-Value Deal Flow Continues in Israel

For an objective comparison of Israel’s performance with other regions, only reported private funding metrics are considered, excluding any estimates and outliers.

For cross-regional comparisons, only reported private funding metrics are included, excluding estimates. In Q3 2025, the United States raised $78.4B in private tech funding, a 2% increase from Q2 2025 and 83% higher than in Q3 2024. Israel’s private funding totaled $3.33.2B ($5.33B including the $2B Safe Superintelligence round), a 38% decline quarter-over-quarter but a 20% decline compared to the same period in 2024.

The number of funding rounds contracted across all regions. In the U.S. rounds declined 25% quarter-over-quarter and 33% year-over-year, while in Israel the decreases were 23% and 29%, respectively.

Europe recorded a 21% increase in funding from Q2 and 16% year-over-year, while rounds declined 39% quarter-over-quarter and 46% year-over-year.. In Asia, funding increased 20% quarter-over-quarter but declined 13% compared to Q3 2024, while the number of rounds declined 17% from Q2 2025 and 40% from the previous year.

These trends highlight an ongoing global recalibration in private capital deployment, with varying degrees of contraction across regions.

Israel

USA

Europe

Asia

Scale-Ready Startups Lead Private Funding

Private funding in Q3 2025 was dominated by a concentrated wave of B rounds, with capital flowing into health tech, business software, cybersecurity and fintech. Health tech was a key magnet for capital with major rounds closed by Aidoc ($110 million). Cybersecurity and business software followed with major rounds closed by Noma Security ($100 million), LayerX Security ($100 million) and Decart.AI ($100 million).

Here is a list of all companies that raised funds during Q3 2025.

Investor Confidence Holds as Deal Flow Diversifies

To ensure comparability, this analysis excludes the $1B Safe Superintelligence round in Q3 2024 and the $2B round in Q2 2025, allowing underlying trends to be assessed more clearly.

Israel secured $0.41B in mega-round funding in Q3 2025, representing a strong 290% increase year-over-year relative to Q3 2024. Quarter-over-quarter levels moderated from Q2 2025, which had been elevated by exceptional one-off transactions. Mega-deals accounted for one in five funding rounds in Q3 2025, a marked step down from the unusually high share in Q2, underscoring a normalization toward a more balanced funding environment. Capital was distributed across a broader mix of deal sizes rather than concentrated in a single transaction.

Compared with Q3 2024, also influenced by the Safe superintelligence $1B outlier, the latest quarter reflects a healthier distribution of activity, with ongoing investor engagement even as headline-grabbing transactions have eased. The overarching trend is of a late-stage market that remains active but increasingly selective, with capital flowing into a wider set of growth opportunities while momentum is maintained beyond earlier extraordinary peaks.

Sector Analysis

Sector Mix: Mature Verticals Lead Deal Value

The Q3 2025 sector breakdown shows a clear concentration of capital in mature, high-performing verticals. Cybersecurity led with $769 million raised across 33 rounds, supported by a healthy median deal size of $17 million. The sector continues to draw strong international attention, reaffirming Israel’s position as a global security innovation hub.

Industrial Technologies secured $337 million over 14 rounds, with a median of $18 million, underscoring the capital intensity of companies operating at the intersection of hardware, automation, and advanced manufacturing.

Business Software followed closely, raising $330 million across 26 rounds, though with a more modest median round size of $11 million. Fintech attracted $210 million from 8 rounds, but stood out with the highest median size at $21 million.

Landscape Maps of Key Sector Players

Explore detailed maps of key players across sectors, offering a clear view of the major companies and innovations shaping each industry. Use them to understand the landscape and spot opportunities in the following sectors:

The Fundraising Journey

Israel’s Startup Funding: Longer times, Larger Rounds and Tighter Funnel

The fundraising journey continues to lengthen, reflecting a market recalibration toward stronger fundamentals and disciplined growth. Between 2014 and 2025, median time-to-next-round increased across all stages. The interval from Founding to Pre-Seed rose from 9 months in 2024 to 13.5 months in 2025, while Pre-Seed to Seed extended slightly from 16 to 17 months. The Seed to Series A transition stretched from 29 to 35 months, and Series A to B from 28 to 31 months. These longer timelines indicate that startups now face higher thresholds for product–market fit, revenue visibility, and operational efficiency before advancing to subsequent rounds.

Round sizes have expanded in parallel with stricter investor expectations. In 2025, the median Pre-Seed round remained steady at $0.8M, while Seed rounds rose to $7M, a 40% increase from 2024. Series A rounds held constant at $17M, and Series B climbed from $35M in 2024 to $50M in 2025, exceeding the $40M median recorded in 2022. The rise in later-stage medians underscores a more concentrated capital deployment, with investors channeling larger sums into companies that demonstrate proven maturity, scalable traction, and sustained performance.

The funding funnel continues to tighten across all stages, with capital concentrating in fewer, higher-conviction investments deeper in the pipeline. This shift signals a market that prioritizes quality over volume, rewarding startups that demonstrate clear traction and solid business fundamentals. For founders, the key takeaway is to plan for longer intervals between milestones and use this time to strengthen core foundations, validated customer demand, durable unit economics, and operational readiness. While investors remain selective, those that meet the higher bar are being rewarded with larger, later-stage rounds that reflect stronger conviction and sustained performance.

Startup Progression: Stronger Early Entry, Sharper Selectivity at Later Stages

For this analysis, we examined the share of startups that raised a subsequent round after their initial funding, capturing how many companies progressed along the funding pipeline. The analysis reflects conditional progression rates, the percentage of companies that, after raising a given round (e.g., pre-seed), successfully advanced to another stage (e.g.,seed + or A+ or B+). Only cohorts with sufficient time to mature are included; thus, No results for start-ups established in 2024–2025 were used as these companies may still evolve as more companies continue their fundraising journey.

Between 2014 and 2023, startup progression rates show a consistent yet selective funding pathway. Around 39% of companies that raised an initial round went on to raise again, a level that held steady across the decade before easing slightly in 2022–2023 to 34%. Early-stage advancement remained limited, with only 6% of startups progressing beyond Pre-Seed and 9% advancing from Seed to later rounds in 2022. Progression to Series A or higher stabilized around 10%, peaking between 2018 and 2021 amid a strong funding climate before softening in recent years. The 2019 cohort stands out for its strong follow-on activity, while 2022–2023 cohorts reflect a more constrained investment environment.

Sector dynamics reinforce these patterns. Business Software remains a steady performer, with balanced progression across rounds and resilience through market cycles, supported by scalable models and sustained enterprise demand. Fintech & Insurtech shows strong early-stage momentum but less consistency at later stages, reflecting the sector’s sensitivity to global valuation shifts and regulatory complexity. Cybersecurity displays notable mid-cycle strength, driven by investor confidence in proven technologies, though recent cohorts suggest more selective follow-on funding. Health Tech & Life Sciences advances more gradually, reflecting long validation cycles and regulatory hurdles that slow capital progression but sustain long-term investor interest. Industrial Technologies and Aerospace & Defense progress less frequently, constrained by extended development timelines and reliance on strategic or corporate capital.

The overall picture is one of a tightening funnel. While more startups can secure an initial pre-seed round, advancing beyond early funding stages has become harder. Capital is concentrated in fewer companies that meet higher thresholds for progression, especially at round A and B. For founders, this means preparing for longer paths between rounds and demonstrating stronger fundamentals before raising the next stage. For investors, it reflects a shift toward more selective, higher-conviction funding deeper in the pipeline.

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Public Companies

Public Companies Funding

Convertible Bonds and PIPEs Dominate

Initial Public Offerings (IPOs): In Q3 2025, IPOs raised $503M across two listings (etoro and Via). This was 19% lower than Q2 2025 ($713M; two deals) but represented a significant increase from Q3 2024 ($16.8M;4 deals). Activity indicates that the IPO window remains open, though at low volumes, with proceeds concentrated in larger offerings.

Convertible Bonds: Three companies (Wix, Nova, and Camtek) raised $2.18B in Q3 2025, compared to just $1.7M in Q2. This surge meant convertible bonds accounted for 60% of total public fundraising in the quarter, reflecting strong issuer preference for large-scale, lower-dilution financing structures
Private Investments in Public Equity (PIPEs): PIPE transactions reached $788M across 11 deals, compared with $94M across 12 deals in Q2 2025 and $161M across 17 deals in Q3 2024. This reflects a decline in the number of transactions but much larger average deal sizes, pointing to capital concentration among fewer issuers, it remains an efficient channel for follow-on capital.

Follow-on Public Offerings: Public offerings totaled $168M across 4 deals, down 77% from Q2 2025 ($716M; seven deals) but higher than Q3 2024, when there was no activity. Results suggest intermittent but improving access for scaled issuers. This follow-on market remains accessible, but with smaller deal sizes and fewer transactions compared to the previous quarter.

Overall: Public fundraising in Q3 2025 was marked by a shift toward convertible bonds and structured deals such as PIPEs, while IPO activity was limited to a smaller number of larger listings. Secondary share sales were also present but at a smaller scale compared to the previous quarter. The market remained selective in deal count yet continued to deliver significant capital for established issuers that met investor expectations.

Finder NASDAQ Index

Finder Index Outpaces Global Benchmarks

Over the 12 months ending June 2025, the Finder Index rose nearly 30%, significantly outperforming the NASDAQ-100 Equal Weighted Index, which gained 12%. While both indices moved broadly in sync through late 2024.

The Finder Index’s 30% gain in 2025 was led by strong performances from Elbit Systems, CyberArk, DRS RADA Technologies, Nova Measuring Instruments, and Tower Semiconductor, reflecting momentum in defense, cybersecurity, and semiconductor markets. Mid-cap names such as Oddity, Camtek, and Nayax also delivered notable gains, supported by solid earnings and investor appetite for scalable growth stories.

These advances outweighed declines in select software and renewable energy stocks, including monday.com, Nice, and SolarEdge, positioning the Index well ahead of global benchmarks and highlighting renewed confidence in Israel’s high-tech and industrial innovation sectors.

Although Israeli public equities are subject to the same global macroeconomic forces as their international peers, they have demonstrated an ability to deliver superior returns, largely fueled by focused innovation and momentum within key sectors.

Notable Public Companies

Israel’s public tech sector remained highly concentrated, with a few leading companies making up the majority of the Finder Index, the benchmark that tracks the performance of Israeli tech stocks.

In Q3 2025, a small group of companies drove the Finder Index’s strong performance. Elbit Systems and DRS RADA Technologies led the gains, reflecting heightened global defense demand and record revenues.

CyberArk also posted a strong rally, supported by rising cybersecurity investment and solid earnings. In the semiconductor segment, Nova Measuring Instruments and Tower Semiconductor saw major increases as global chip production recovered. Mid-cap firms including Oddity, Camtek, and Nayax added further momentum through robust growth and investor optimism.

These companies collectively powered the Index’s near-30% rise, highlighting investor confidence in Israel’s defense, cybersecurity, and semiconductor sectors.

Overall, the market environment favors large, global-ready companies in mission-critical industries, while smaller players are navigating a more cautious investment climate.

Here is a list of all publicly traded Israeli tech companies (on the various stock exchanges) updated daily.

Mergers & Acquisitions

Contributor Perspective

Itamar Golan

CEO & Co-Founder, Prompt Security

My journey in AI security began after years of working within Israel’s defense and cybersecurity sectors, including Unit 8200 and Check Point. The early exposure to emerging risks allowed me to anticipate and tackle security challenges before AI technologies went mainstream. At Orca Security, I witnessed firsthand the dramatic expansion and risks of AI adoption – traditional security solutions simply weren’t keeping pace.

As adoption rapidly accelerated and new types of attacks emerged, we teamed up and founded Prompt Security to build a product aimed at preventing leaks of sensitive information through popular AI-powered enterprise tools. The demand for our solution was immediate and strong, we gained commercial traction, expanded operations to the U.S., and grew our revenues. Our quick wins led to substantial funding and international expansion.

The product evolved from securing AI usage to comprehensive AI protection – including vulnerability detection and real-time monitoring. Our team expanded internationally and developed modules like automated penetration testing to proactively identify and fix AI model weaknesses pre-deployment.

With Prompt Security’s product experiencing global adoption, we faced a crossroads: scale independently with massive funding or join forces with SentinelOne enabling instant reach and resources. We chose to join SentinelOne because their global reach accelerates our vision of securing AI across every major enterprise worldwide. They respect our culture and product autonomy, allowing us startup agility under a powerful corporate umbrella.

My goal is to establish our platform as the comprehensive AI security standard – covering tool usage monitoring, safeguarding sensitive organizational data, protecting custom AI applications, and continuously identifying new vulnerabilities. This approach includes breadth and depth: adding high-quality new modules with constant adaptation to emerging protocols and attack methods.

Persistence and grit remain the most important success factors for founders. The startup journey is brutal and unpredictable. Those who endure the rollercoaster, maintain vision, and push forward despite setbacks ultimately build game-changing companies. This mindset has carried me and my team through challenges to build an AI security company positioned for global impact.

The Israeli tech ecosystem excels globally in cybersecurity, owing much to Unit 8200’s elite veteran talent. However, Israel still lags in foundational AI infrastructure compared to the U.S. and China. I hope to see an expansion of Israeli deep-tech AI infrastructure innovation, in addition to the thriving application-level startups.

M&A Trends

Landmark Deals Propel 2025 Toward Historic Highs

Global Players Anchor Market Momentum Through Landmark Deals

Israel’s tech M&A market recorded $25 across 33 exits in Q3 2025, the second-highest quarterly total on record after Q1 2025. While the number of transactions remained steady, two large acquisitions accounted for the majority of disclosed value: Google’s acquisition of Wiz ($32B) and Palo Alto Networks’ acquisition of CyberArk’s acquisition ($14B).

Excluding the large headline acquisitions, 32 transactions contributed $6.97B in disclosed value. This represents a 53% increase from Q2 2025 and a 25% rise year-over-year, with activity largely concentrated in early- to mid-stage companies. The trend underscores the role of M&A as a driver of technology integration and talent acquisition, reinforcing longer-term market dynamics.

Broader Exit Activity Reinforces Long-Term Market Strength

Excluding the $32B acquisition of Wiz and $14B acquisition of CyberArk, exit activity in 2025 shows moderation from the exceptionally strong first half of the year. In Q3 2025, disclosed value reached $2.1B across 28 deals, down from $3.3B in Q2 and $3.7B in Q1. While quarterly totals have eased, results remain above Q3 2024 levels ($1.1B across 16 deals), pointing to a healthier year-over-year trend. This reflects an exit environment that, despite short-term fluctuations, is delivering more consistent outcomes than in 2023 and early 2024, supported by a steady pipeline of early- and mid-stage acquisitions.. 2025 is tracking as Israel’s strongest exit year to date.

Notable M&As

M&A Scale and Sectoral Breadth

The set of recent acquisitions featured on Finder illustrates the breadth of Israel’s technology ecosystem, spanning cybersecurity, fintech, business software, health tech and aerospace. The largest disclosed transaction was CyberArk’s $25B acquisition by Palo Alto Networks, underscoring the scale of Israel’s cybersecurity industry. Other significant cybersecurity exits included Aim Security ($350M, acquired by Cato Networks), Findings ($305M, acquired by Diginex), Prompt Security ($275M, acquired by SentinelOne), and Cynerio ($180M, acquired by Axonius).

Fintech activity featured the acquisition of Sapiens International Corporation by Advent International for $2.5B. In business software, Verint Systems was acquired by Thoma Bravo for $2B and Atero AI was acquired by Crusoe for $150M. In health tech, Vectorious Medical Technologies was acquired by Edwards Lifesciences for $497M. SatixFy represented aerospace with a $269M acquisition by MDA Space,. Together, these transactions show Israel’s continued role as a source of strategic technology acquisitions, with cybersecurity leading in both scale and frequency, complemented by meaningful activity across multiple verticals.

Here is a list of all Israeli tech companies that were acquired in Q3 2025

Investors

Contributor Perspective

Eyal Niv

Managing Partner, Pitango

Investor Trends

Investor Base Narrows

In Q3 2025, 233 investors participated in Israeli tech funding rounds, representing one of the lowest quarterly totals since Q4 2023. This marked a 21% decline compared to Q2 2025 (294 investors) and a 25% decline year on year (311 investors in Q3 2024).

Global investors accounted for 132 of the participants, down 28% from Q2 and 24% year on year. Israeli investors totaled 101, declining more moderately at 10% quarter on quarter and 27% year on year. As a result, global investors represented 57% of total participants, a share slightly lower than the previous quarter (62%) but broadly in line with 2024 levels.

The contraction in active investors is consistent with the overall reduction in funding rounds and the trend toward fewer, higher-value transactions. While both global and domestic participation decreased, the sharper pullback among global investors suggests heightened selectivity in cross-border capital flows. This decline is also taking place against a backdrop of regional uncertainty linked to the war, which has added another layer of caution for some international investors alongside broader global market dynamics.

Global Investor Participation

Global Investor Participation Back to Peak Levels

In Q3 2025, global investors participated in 91 funding rounds, while Israeli investors participated in 44. This represents a sharp contraction compared to Q2 2025 (125 global; 54 Israeli) and Q3 2024 (119 global; 75 Israeli). Global investors accounted for 67% of all funding rounds,slightly down from 72% in Q2 2025 and up from 61% in Q3 2024.

The data highlights two parallel trends: overall investor activity has fallen, but the relative share of global investors has increased. This reflects the ongoing contraction in local participation alongside a continued role for international investors in Israeli tech.

The data show that global participation fell more steeply than domestic participation compared to earlier quarters. This suggests that while the overall reduction in investors is consistent with the global shift toward fewer, larger transactions, regional instability has added an additional layer of caution for cross-border investors.

Notable Investors

Local Investors

TLV Partners was among the most active local investors, participating in 8 rounds, including 7 first-time investments. iAngels and Vertex Ventures Israel both followed with 7 rounds, 2 of which were first time rounds. Peregrine Ventures recorded 6 rounds with one first time round and Glilot Capital Partners followed with 5 rounds, 2 of which were first-time investments. Several firms recorded 4 rounds each: Team8 (3 first-time) Cerca Partners and Picture Capital (2 first-time each), S Capital VC (1 first-time).

Global Investors

Bessemer Venture Partners was the most active global investor in Q3 2025, participating in 6 rounds, all of which were first-time investments.Ibex Investors followed with 5 rounds and 2 first time rounds. NFX Capital and Norwest Venture Partners followed with 4 rounds each, including 2 first-time investments apiece. Insight Partners and Maor Investments both participated in 3 rounds, with 1 first-time investment.

Several firms recorded 2 rounds each, including Battery Ventures, Maccabee Ventures, O.G. Venture Partners, Samsung Catalyst Fund, and SVCI, all of which were entirely first-time investments.

This activity highlights consistent engagement from leading global funds, with a strong emphasis on first-time investments, particularly from Bessemer and several mid-size funds.

Here is a list of all investors in Q3 2025

Economic Indicators & Impacts

Contribution to GDP and Exports

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Local Employment Trends

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Employment by Israeli Tech Companies

Introduced in our Q1 2025 report, Startup Nation Central’s Global Employment Indicator provides a comprehensive view of Israel’s high-tech workforce by aggregating professional employment data from over 5,000 Israeli-founded companies worldwide. The indicator complements official CBS figures by capturing the global footprint of startups and scale-ups, including employees based abroad.

For Q3 2025, the dataset recorded ~618K employees in Q2 and ~616K in Q3, reflecting a 0.3% quarter-over-quarter decrease following a period of steady growth. This marks a continued recovery from late 2024, when total employment fell by more than 6% before stabilizing in early 2025. While CBS data for Q2 2025 has not yet been released, historical comparisons show consistent directional alignment between the two measures, with the global dataset typically displaying smoother trends and lower volatility than local employment figures.

Summary

Q3 2025

In Q3 2025, Israel’s tech ecosystem demonstrated strong momentum, with estimated private funding reaching $11.9 billion, an 18% increase from the previous year, driven by larger rounds and growing investor focus on scale-ready companies. Mega-rounds totalled $0.41B in Q3 2025, 290% increase year-over-year relative to Q3 2024. Quarter-over-quarter levels eased from Q2 2025, which had been elevated by exceptional one-off transactions. Mega-deals accounted for 20% (one in five) of funding rounds in Q3 2025, a normalization from the unusually high share in Q2, underscoring a more balanced funding environment. Capital was distributed across a broader mix of deal sizes rather than concentrated in a single transaction.

Exit activity in 2025 shows moderation from the exceptionally strong first half of the year. In Q3 2025, disclosed value reached $2.1B across 28 deals, down from $3.3B in Q2 and $3.7B in Q1. While quarterly totals have eased, results remain above Q3 2024 levels ($1.1B across 16 deals), pointing to a healthier year-over-year trend. The trends are supported by a steady pipeline of early- and mid-stage acquisitions. 2025 is tracking as Israel’s strongest exit year to date.

Israel’s performance trends were on par with the U.S. and significantly outperformed Europe and Asia. The Finder NASDAQ Index rose 30%, stronger than NASDAQ-100 EW which rose by 12%.

Fundraising timelines lengthened, with the median time from Seed to Series A reaching 35 months, reflecting greater investor scrutiny. The future of the Israeli tech ecosystem in H2 2025 and beyond will be influenced by several factors:

Geopolitics and capital markets. Ongoing regional tension and macro uncertainty may constrain late-stage fundraising and exit activity, keeping the IPO window intermittent and pressuring valuations.
Investor consolidation and selectivity. A smaller, more discerning investor base elevates requirements for diligence, traction, and capital efficiency, particularly for Series A to later rounds.
Talent and employment. Tight labor markets in AI, semiconductors, and cybersecurity, alongside wage pressures, could raise operating costs and slow product delivery if not managed proactively.
Scale-up execution. With capital concentrated in fewer companies, execution discipline becomes decisive: efficient go-to-market, durable unit economics, governance, and milestone planning are critical, especially in industrial, health tech, and infrastructure.
Security-tech concentration. Defense, cyber, and aerospace are likely to continue attracting capital, but procurement cycles, regulatory constraints, and budget timing introduce volatility even as these sectors anchor strategic growth.

While Q3 2025 underscored the durability of Israel’s tech ecosystem, the near-term outlook remains balanced. Persistent global headwinds—alongside geopolitical risk and heightened investor selectivity—could moderate momentum into H2. Even so, Israel’s deep innovation base, expanding global footprint, and strength in strategic sectors such as cybersecurity, defense, and semiconductors position the ecosystem to navigate uncertainty. Sustained success will hinge on the ability to scale efficiently and retain critical talent, with disciplined execution and capital efficiency as defining advantages.

Looking to engage with Israeli tech?

Contact us to explore tailored opportunities

Methodology Notes

The report is based on the Startup Nation Finder database, with the following exceptions:
○ Selected metrics in the Global Comparison and Finder Index sections are based on Pitchbook.
○ Selected metrics in the Economic Indicators and Impact section are based on the Central Bureau of Statistics survey data
The report offers a snapshot of Q3 2025 activity as of Sep 28, 2025. Data might be further updated in the future. As a result, figures in this report may differ from figures in prior (and future) published reports.
The definition and criteria for companies and investors can be found in the Finder Glossary.
Active Investors are defined as investors with at least 1 investment round in Q3 2025.
Aggregate metrics may include rounds that are not visible in Finder, per the request of the profile owners.
Funding Type definitions:
○ Private Funding includes the following round types: Pre Seed, Seed, A, B, C, D, E, F, G Rounds, Convertible Debt, SAFE, Equity Crowdfunding, and Undisclosed rounds.
○ Funding for Public companies includes the following event types: IPO (including IPO via SPAC or Reverse Merger), Non-Initial Public Offering, PIPE, Convertible Bonds.
○ The following events are excluded: Crowdfunding, Debt Financing, Secondary, and Grants.
Some Finder lists are dynamic and provide current snapshots. Hence the results might not match the figures in the report.
The Finder Index is an index calculated by Startup Nation Central, based on Israeli companies traded in NASDAQ with a $50 million market cap minimum threshold and using an equal-weighting methodology.
The Fundraising Journey chapter is based on a new analysis. Figures may be revised based on expanded data availability and future methodology enhancements.
○ The Israeli analysis is based on the Startup Nation Finder database.
○ Israeli metrics are calculated based on the values of Pre Seed, Seed, A and B Rounds and the median time from the prior round.
○ Definitions of funding stages align with those used in Finder. Durations between rounds are approximate.
○ Company progression was measured capturing how many companies progressed along the funding pipeline. The analysis reflects conditional progression rates, the percentage of companies that, after raising a given round (e.g., pre-seed), successfully advanced to a next stage (e.g.,seed + or A+ or a B+ round).
○ Only cohorts with sufficient time to mature are included; thus, we did not use results for 2024-2025 as they may still evolve as more companies continue their fundraising journey.

About Us

Startup Nation Central is a free-acting NGO providing global solution seekers frictionless access to Israel’s bold and impatient innovators to help tackle the world’s most pressing challenges. Our free business engagement platform, Finder, grants unrestricted access to real-time, updated information and deep business insights into the Israeli tech ecosystem.

A special thanks to Dr. Sergei Sumkin, Senior Researcher at the Aaron Institute for Economic Policy, for his continuous contribution to the Economic Indicators & Impacts chapter.

We wish to also thank Assaf Zvaig for his valuable contributions to the report.

Q3 2025 Report

Israeli Tech Ecosystem

Content

Introduction

Executive Summary

Yariv Lotan

Yariv Lotan, VP of Product and Data, Startup Nation Central

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Ecosystem Landscape

Optional H3

Private Companies​

Private Funding Trends

Optional H3

Selective, Higher-Value Deal Flow Continues in Israel

Israel

USA

Europe

Asia

Scale-Ready Startups Lead Private Funding

Investor Confidence Holds as Deal Flow Diversifies

Sector Analysis

Sector Mix: Mature Verticals Lead Deal Value

Landscape Maps of Key Sector Players

The Fundraising Journey

Israel’s Startup Funding: Longer times, Larger Rounds and Tighter Funnel

Startup Progression: Stronger Early Entry, Sharper Selectivity at Later Stages

Public Companies

Public Companies Funding

Convertible Bonds and PIPEs Dominate

Finder NASDAQ Index

Finder Index Outpaces Global Benchmarks

Notable Public Companies

Mergers & Acquisitions

Contributor Perspective

Itamar Golan

CEO & Co-Founder, Prompt Security

M&A Trends

Landmark Deals Propel 2025 Toward Historic Highs

Global Players Anchor Market Momentum Through Landmark Deals

Broader Exit Activity Reinforces Long-Term Market Strength

Notable M&As

M&A Scale and Sectoral Breadth

Investors

Contributor Perspective

Eyal Niv

Managing Partner, Pitango

Investor Trends

Investor Base Narrows

Global Investor Participation

Global Investor Participation Back to Peak Levels

Notable Investors

Local Investors

Global Investors

Economic Indicators & Impacts

Contribution to GDP and Exports

Local Employment Trends

Employment by Israeli Tech Companies

Summary

Q3 2025

Looking to engage with Israeli tech?

Contact us to explore tailored opportunities

More on the Israeli Tech Ecosystem

Methodology Notes

About Us

Private Companies