Why Israel, Why Now: A Conversation on Investing for the Future

In my role connecting global investors with Israel’s thriving tech ecosystem, I’m continually struck by Israel’s unique strengths as a strategic investment hub. Israel’s resilience and ingenuity are evident in its ability to create breakthrough solutions that meet global challenges head-on.

Recently, I’ve had the privilege of speaking with leading investors who see Israel not just as a tech powerhouse but as a future-focused ecosystem where investments yield both financial returns and meaningful impact. This isn’t just about returns on paper—it’s about aligning with an ecosystem that embodies “Impatient Innovation,” quickly delivering solutions with urgency and purpose.

Today, as Israel continues to lead in sectors like cybersecurity, health tech, and AI, I am inspired by the many investors who recognize Israel’s tech ecosystem as both resilient and forward-thinking. Here’s a look at why Israel stands out as a premier choice for those seeking high-impact investments that are built for a changing world, according to the investors leading this change.

A Thriving Tech Ecosystem

Israel is celebrated worldwide as a tech powerhouse, boasting one of the highest rates of startups per capita. This dynamic ecosystem fosters groundbreaking innovations across fields as varied as cybersecurity, artificial intelligence, fintech, and biotechnology. Supported by top-tier universities, a creative culture, and a government committed to R&D investment reaching nearly 6% of its GDP, Israel consistently delivers solutions that address pressing global challenges.

Remarkably, even amid global market volatility and regional conflicts, Israel’s private tech funding increased by 30% year-on-year, reaching an estimated $10.2 billion in Q1-Q3 2024, compared to $7.8 billion in the same period of 2023. This growth reflects strong investor confidence in Israel’s tech ecosystem:

“Israeli technologies and companies are a solid investment today—not only due to the adaptability and resilience of their teams but also because they’re introducing innovations for sectors like defense that will eventually enrich civilian markets. Historically, Israel’s best tech has emerged from defense and flourished in the civilian sector. We’ll see a similar wave of impact once the current conflict subsides. Moreover, startups are raising funds at competitive rates. Investors putting resources into Israel now will see substantial growth by 2025.”

–Naava Mashiah of The Founders Kitchen

Resilience in the Face of Adversity

Despite regional challenges, Israel has proven itself as a stable, secure hub for tech innovation. The events of the past year, including the regional conflict that began on October 7th, 2023, have put the ecosystem’s strength to the test, yet the sector continues to grow. This year alone, Israel maintained its position as the third-largest global hub for capital raised, following only Silicon Valley and New York. Major U.S. multinationals and global investors like Sequoia Capital have continued their partnerships and investments, reinforcing their confidence in Israel’s technological future.

“Resilience is the foundation of renewal. Just as New York rebuilt with strength and vision after 9/11, Israeli startups today are reshaping challenges into avenues of opportunity. Investing in these companies is an investment in a future defined by innovation and tenacity—where obstacles serve as catalysts for groundbreaking solutions.”

–Tal Kerret, President of Silverstein Properties

Building Long-Term Value

Investing in Israel allows for portfolio diversification beyond traditional markets in North America, Europe, and Asia. Israeli companies, though based locally, are deeply engaged in global markets and strategically positioned to capture international growth. With a high-tech economy that emphasizes sustainable practices and resource efficiency, Israeli investments represent a strategic choice aligned with long-term growth and resilience.

Notably, M&A activity surged 40% to $12 billion in Q1-Q3 2024, up from $8.6 billion during the same period in 2023. This growth, driven largely by exits in business software and health tech, highlights sustained global confidence in Israel’s innovative capabilities, despite broader economic uncertainties, and establishes Israel as a reliable player in global tech innovation:

“A generation of founders will emerge from these times, strengthened by adversity in both business and life. This challenging experience grants them a unique perspective: that anything is achievable and no challenge is insurmountable.”

–Charlie Federman of SilverTech Ventures

Israel’s Value for Investors Today

Israel’s tech-driven economy and culture of resilience create a unique investment opportunity for those seeking both growth and impact. From defense innovation to climate tech solutions, Israel’s tech sector is evolving rapidly. Companies leading this charge are not only prepared to face challenges but to thrive in them. Today, Israel stands as an investment destination where resilience, growth, and long-term value intersect—traits that will continue to shape the future of global innovation.

“I’m extremely optimistic about investing in Israeli startups both now and into the future. Israel’s startup scene has always offered outstanding opportunities, rooted in resilience and tenacity—qualities essential for founders tackling complex, resource-intensive challenges. The training Israelis receive in the military and at top universities gives them a strong technical edge, and a focus on global markets from day one ensures that Israeli startups are prepared to scale. Recent events have created opportunities for dedicated investors at stable or even lower valuations, setting the stage for a revitalized ecosystem that will only grow stronger.”

–John Harthorne of Two Lanterns Venture Capital

Investing in Israel’s Pivotal Moment

Israel’s technology sector is at a pivotal moment. With over 7,000 startups, 280 active investors, and a tech ecosystem that’s projected to keep growing, Israeli startups are innovating under pressure, leveraging resilience and adaptability as drivers of change. Investing in Israel means aligning with a future-focused ecosystem that’s engineered to meet the demands of a complex world.

Israel’s unmatched resilience, proven global reach, and investor-friendly valuations make it a destination where innovation and investment meet purpose, strategically poised for a promising future that blends growth with meaningful global impact.