Israeli privately-held tech companies have raised $2.13 billion in the first quarter of 2025, up 24% from the corresponding quarter of 2024, IVC-LeumiTech reports.
The IVC-LeumiTech survey for the first quarter found that there were about 200 financing rounds completed, including financing rounds that were not published, down 10% from the number of financing rounds in the first quarter of 2024.
Despite the 24% jump in the amount of money raised in the first quarter of 2025, compared with the first quarter of 2024, there was a 12% fall from the $2.41 billion raised in the preceding quarter - the fourth quarter of 2024. There was also a clear fall in the number of first investments in the first quarter of 2025, with investors preferring to invest in companies already in their portfolio.
The first quarter of 2025 saw two exceptional financing rounds of over $200 million with fintech company Rapyd raising $250 million, alongside an equal amount raised in debt, and cybersecurity company Island raising $250 million. These two financing rounds represented 25% of all the capital raised in the first quarter. However, even after deducting these huge financing rounds, the amount raised in the first quarter of 2025 was still 8% higher than the amount raised in the first quarter of 2024.
Cybersecurity leads
The cybersecurity sector continues to lead in the amount of investment in Israeli companies - Israel's leading tech sector as demonstrated earlier this month by the $32 billion acquisition of cloud security company Wiz by Google. Total investments in cybersecurity startups in the first quarter amounted to $894 million, 42% of all the money raised, in 24 financing rounds (25% of all rounds) - which indicates a clear trend of the strength of the industry.
LeumiTech CEO Maya Eisen Zafrir said, "We started the year with the Wiz deal, which is exceptional by historical standards. I hope that the positive sentiment that we are already hearing from foreign investors around the deal will translate into positive momentum for the rest of the year. At the same time, we are encouraged to see an increase in follow-on investments, which indicate the desire of investors to deepen their grip on Israeli high-tech."
Published by Globes, Israel business news - en.globes.co.il - on March 31, 2025.
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