Israeli privately-held tech companies raised $12.2 billion in 2024, up 31% from 2023, Start-Up Nation Central (SNC) reported today. Of this figure, $10.6 billion was officially reported by the companies that raised the money, while an additional $1.6 billion was in deals that remain unreported.
The report also indicates a change in the patterns of investment. While in 2023, there was only moderate investment in the market, 2024 marked the return of mega financing rounds, amounting to an overall $4 billion, representing 41% of all the capital raised, compared with only nine financing rounds totaling $2 billion in 2023. The median financing round amount in 2024 was $8 million, indicating that early-stage companies continue to raise regularly.
Israeli cybersecurity companies, which account for 7% of all tech companies in Israel, raised $3.8 billion last year - about a third (36%) of total investments in the tech sector. The amount of funding in the cybersecurity sector rose by 90%, with a median financing round of $18 million, higher than the overall industry average.
The report also states that while the Israeli economy contracted by 1.5% in the first nine months of 2024, the tech sector's GDP grew by 2.2%. "Trends in the US continue to be the most influential factor on the Israeli tech ecosystem," said Avi Hasson, CEO of Start-Up Nation Central, in the report. He added, "Stability in the US market contributes to the recovery we are seeing."
Published by Globes, Israel business news - en.globes.co.il - on January 14, 2025.
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