The story behind the success of Israeli innovation

The Israeli tech landscape in H1 2024 showed strong activity with 7,158 active companies and 217 active investors. Private funding rose for the first time since H2 2021, reaching $5.1 billion across 322 rounds, driven by Q2’s $3.3 billion surge, the highest since Q2 2022. Public funding is relatively stable at $825 million. M&A exits were at $4.1 billion from 29 deals, the highest since H2 2021. Despite a slight decline in active startups, the ecosystem’s overall robust performance highlights enduring confidence in Israel’s tech innovation despite the complexities posed by the war and geopolitical challenges.

In H1 2024, the Israeli tech ecosystem saw 14 mega rounds (above $100 million). This is an increase from 8 mega rounds in H2 2023. These mega rounds accounted for $2.8 billion out of the total $5.1 billion in private funding, representing 56% of the total compared to 32% in H2 2023. This marks the highest ratio of mega rounds to all private funding since H2 2021, which stood at 59%. Wiz stands out with a $1 billion round, representing 20% of all private funding. Notably, 8 of these mega rounds were in the cybersecurity sector.

Currently there are nearly 450MNC Innovation and R&D Centers in Israel​

Despite immediate challenges to Israel’s tech sector after October 7th, new report shows resilience.
Israeli tech continues to attract significant investments, raising $7.8 billion even during the conflict. While there is cautious optimism, with 54% of companies expecting growth, the sector is still facing significant hurdles,” said Startup Nation Central VP of Digital Products and Data, Yariv Lotan. “Funding uncertainty remains a major concern, with 49% of companies experiencing some level of investment cancellations.