Israeli high-tech firms raised US$2.13 billion in Q1 2025, a 24% increase from last year, according to LeumiTech and the IVC Research Center.

The cybersecurity sector was a key contributor, representing 25% of all funding rounds and 42% of total capital.

Notably, US$250 million funding rounds for Rapyd and Island accounted for nearly a quarter of the overall capital raised.

Excluding these rounds, funding still grew by 8% compared to Q1 2024, indicating broader market growth. However, completed funding rounds dropped by 10%, totaling 96.

The quarter saw a rise in follow-on investments, reflecting support for existing companies rather than new startups.

Analysts believe Google’s US$32 billion acquisition of Israeli cybersecurity firm Wiz has strengthened confidence in the tech sector.