Israeli startups raised US$9.3 billion in the first half of 2025, according to data from Startup Nation Central (SNC).

This figure marks a 54% increase compared to the same period in 2024 and represents the strongest performance since 2022.

The total includes a US$2 billion funding round by Safe Superintelligence, an AI company with connections to Israel but based in both Palo Alto and Tel Aviv.

Excluding this funding round, Israeli startups raised US$7.3 billion, surpassing the total of US$10 billion raised during all of 2024.

In the second quarter of 2025, startups raised US$6 billion, an increase from US$3.3 billion in the first quarter.

The number of funding rounds, however, declined, with 365 rounds completed in the first half of 2025, a 10% decrease from the second half of 2024.

Nevertheless, larger funding rounds are increasing, with 32 rounds exceeding US$50 million, up from 20 in the previous period.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Israeli tech demonstrates conflict resilience as a sector trait

The ability of Israeli startups to attract $9.3 billion in the first half of 2025, with a third of deals closing after the start of the Iran conflict, highlights the ecosystem’s extraordinary resilience under pressure.

This trend extends beyond the current conflict, revealing how the Israeli tech sector has developed a degree of resilience to regional tensions, a quality international investors have come to recognize and factor into their decisions1.

Israeli stocks rose during the conflict period, contrasting with traditional market responses to geopolitical crises, as investors increasingly perceive military actions as demonstrations of deterrence rather than existential threats1.

The startup ecosystem’s resilience likely stems from its deeply internationalized nature. The Innovation Israel report notes that Israeli high-tech is particularly global, conducting a significant portion of transactions in foreign currencies and maintaining strong international ties2.

Even during times of regional instability, the strong connections to foreign markets, particularly the U.S., provide a buffer against local disruptions, allowing capital to continue flowing despite challenging circumstances.

2️⃣ Growth-stage deals signal maturing ecosystem and investor confidence