Israeli technology startups are projected to attract more funding in 2025, fueled by a recent ceasefire in Gaza and declining interest rates, according to Alon Stopel, chairman of the Israel Innovation Authority.

In 2023, Israeli startups raised around US$8 billion, down from US$10 billion in 2022, amid challenges from the ongoing conflict.

With the recent ceasefire providing a temporary break, Israeli entrepreneurs can now focus on new business ventures.

Stopel also expressed concerns about the impact of recent US restrictions on advanced AI chip exports to Israel but hopes for a policy shift if former President Donald Trump returns to office.

Despite these challenges, the Israeli tech sector remains a crucial part of the country’s economy.