Some $9.3 billion was invested in Israeli hi-tech since the beginning of the year, a 54% jump compared to the second half of 2024, according to a mid-year analysis by Startup Nation Central.

This recovery, which began in late 2024, accelerated in Q2 2025, with funding rising from $3.3 billion in Q1 to $6 billion in Q2, despite a decrease in the number of investment rounds from 214 to 151, the report found.

Enterprise software led all hi tech sectors with more than $3 billion invested in the first half of the year—due to a $2 billion deal with Safe Superintelligence—followed by cybersecurity, with nearly $2 billion invested. Fintech was third with some $750 million, followed by health tech with about $620 million.

“The quantity-to-quality trend we’ve been tracking is only getting stronger, with fewer deals, but each round is larger and more focused,” said Yariv Lotan, VP of Digital Products and Data at Startup Nation Central.  “Along with active dealmaking in stealth-stage companies, this reinforces the ‘startup baby boom’ trend we pointed to at the end of 2023 and mark a standout investment opportunity in Israel’s tech ecosystem.”

The peak year for foreign investment in Israeli high-tech was in 2021, with more than $30 billion in funding.