Against All Odds: Israeli Tech Surpasses US $12 Billion in Funding in 2024 Amid Ongoing Conflict

Tuesday, 14 January 2025 | Israeli tech companies secured an estimated US $12.2 billion in funding in 2024, reflecting a 31% increase compared to 2023, according to a new report published by Startup Nation Central on Tuesday.

The Jewish state’s technology sector achieved record M&A (mergers and acquisitions) activity of $15.8 billion and drove economic growth, with the tech GDP rising by 2.2% even as the economy contracted, noted the report, which culled data from Startup Nation Central’s Finder platform.

In 2024, Israeli tech saw 15 US $100 million-plus mega-rounds, totaling US $4 billion, accounting for 41% of total funding. The development marked a significant increase from 2023’s nine rounds amounting to US $2 billion.

Cybersecurity firms maintained their upward trajectory, representing just 7% of Israeli tech companies yet securing 36% of total funding with US $3.8 billion. In addition, 2024 marked the Jewish state’s strongest year for acquisition-driven exits, increasing by 49% to a total of US $15.8 billion.

“As we enter 2025, the return of [US] President [Donald] Trump and the ongoing development in the Middle East introduces fresh opportunities for Israel’s tech ecosystem, potentially deepening Israel’s collaboration within the region and opening new pathways for innovation and investment,” said Startup Nation Central CEO Avi Hasson.

Israeli high-tech in 2024 “showcased resilience and adaptability despite domestic uncertainties and geopolitical tensions. Global dynamics, particularly US investment trends, helped Israel maintain its status as a global innovation hub and leader in sectors like cybersecurity,” he added.

Approximately 10% of the technology sector’s workforce have missed significant amounts of time at work due to having to perform military reserve duty since the war with Hamas began on October 7, 2023.

In addition, many Israeli startups have stepped up to address war needs, developing solutions for challenges arising from the conflict. From communication to logistics support and healthcare innovations, tech companies are leveraging their expertise to contribute to the war effort.