Israeli startups raise $3.15b in first five months of 2025

Despite the month-over-month decline, the cumulative $3.15 billion raised in 2025 suggests resilience in Israel’s tech sector amid global economic uncertainties.

By JNS

Israeli startups secured $3.15 billion in funding during the first five months of 2025, Israeli business daily Globes reported on Tuesday.

This figure, while substantial, indicates a tempered pace compared to previous years.

In May alone, startups raised $550 million, a significant dip from the more than $1.4 billion raised in May 2024, which was bolstered by Wiz’s record-setting $1 billion round.

Notable funding rounds in May 2025 included:

AI21 Labs: $300 million Series D

Classiq (quantum software): $110 million Series C

Orca AI (maritime tech): $72.5 million

Empathy (grief support): $72 million

Ox Security (cybersecurity): $60 million

Kela: $60 million

PhaseV: $50 million

These seven deals accounted for over 85% of May’s total funding, highlighting a concentration of investment in a few high-profile companies.

Despite the month-over-month decline, the cumulative $3.15 billion raised in 2025 suggests resilience in Israel’s tech sector amid global economic uncertainties.

However, the current trajectory indicates that total annual funding may fall short of 2024’s $9.58 billion, which itself was a decrease from the $15 billion raised in 2022 and the record $25.6 billion in 2021.

The slowdown reflects a broader global trend of cautious investment, yet Israel’s tech ecosystem continues to attract significant capital, particularly in sectors like AI, quantum computing and cybersecurity.