Israel’s tech sector saw private funding decline in Q3 2025, while mergers and acquisitions (M&A) reached record highs.

Private funding totaled US$2.4 billion, down 38% from Q2 excluding Safe Superintelligence’s raise, and 18% year-on-year.

Deal volume dropped to 141, a 24% quarterly and 38% annual decline, but the median round size rose 50% to US$10.5 million.

Active investors fell to 230, the lowest since early 2024, showing weaker market participation.

M&A value surged to US$31.8 billion, led by Palo Alto Networks’ US$25 billion CyberArk acquisition, with cybersecurity dominating both investment and deal activity.

🔗 Source: Calcalist