Israeli privately-held tech companies raised $12.2 billion in 2024, up 31% from 2023, Start-Up Nation Central (SNC) reported today. Of this figure, $10.6 billion was officially reported by the companies that raised the money, while an additional $1.6 billion was in deals that remain unreported.

The report also indicates a change in the patterns of investment. While in 2023, there was only moderate investment in the market, 2024 marked the return of mega financing rounds, amounting to an overall $4 billion, representing 41% of all the capital raised, compared with only nine financing rounds totaling $2 billion in 2023. The median financing round amount in 2024 was $8 million, indicating that early-stage companies continue to raise regularly.

Israel's cybersecurity 

Israeli cybersecurity companies, which account for 7% of all tech companies in Israel, raised $3.8 billion last year — about a third (36%) of total investments in the tech sector. The amount of funding in the cybersecurity sector rose by 90%, with a median financing round of $18 million, higher than the overall industry average.
An Israeli flag flutters near the logo of Teva Tech which is part of Teva Pharmaceutical Industries in Neot Hovav, southern Israel December 14, 2017. (credit: AMIR COHEN/REUTERS)
An Israeli flag flutters near the logo of Teva Tech which is part of Teva Pharmaceutical Industries in Neot Hovav, southern Israel December 14, 2017. (credit: AMIR COHEN/REUTERS)
The report also states that while the Israeli economy contracted by 1.5% in the first nine months of 2024, the tech sector's GDP grew by 2.2%. "Trends in the US continue to be the most influential factor on the Israeli tech ecosystem," said Avi Hasson, CEO of Start-Up Nation Central, in the report. He added, "Stability in the US market contributes to the recovery we are seeing."