Tech investments in Israel increase by 45% following Gaza ceasefire

Investments in Israeli startups and larger tech companies have soared by 45% since the American brokered Gaza ceasefire in October, according to a preliminary report compiled by LeumiTech (Bank Leumi arm) and IVC. The report reveals that Israeli tech companies raised $3.43 billion from investors from October until mid-December across 94 funding rounds. 

“The past year reflects the strength and continued growth of Israeli tech, despite a prolonged period of uncertainty and upheaval in the local and global arena,” LeumiTech CEO Maya Eisen-Zafrir assessed.

Eisen-Zafrir further explained that “the capabilities and reputation that were built up in recent decades in the field of cyber, together with the leadership we see in the field of AI, constitute a force multiplier and a strategic asset for Israel.”

“The AI ​​revolution is not only driving the market but is also creating new needs in the fields of information protection and privacy,” she added.

The Israeli business daily Calcalist recently reported that American tech giant Nvidia intends to invest $1.5 billion in the construction of a large server farm in Israel. Once it is complete, the new Israel-based site is expected to become the largest of its kind outside the United States. Nvidia’s growing investments in Israel are expected to further strengthen the Start-Up nation’s position among the world’s leading tech and innovation centers. 

Another report published by Startup Nation Central, revealed that Israeli tech startups and businesses succeeded in raising $15.6 billion in private capital from investors throughout 2025. This constitutes a 24% increase in investments compared to 2024 and a whopping 68% increase compared to 2023, which was severely affected by the Hamas Oct. 7 attack. 

“We are seeing a growing gap between public sentiment and corporate behavior,” explained Yariv Lotan, VP of Product and Data at Startup Nation Central. “While early-stage founders face tougher funding conditions, global corporations are moving decisively in the opposite direction."

Foreign investors are responsible for some 60% of all the funds invested in Israeli tech companies according to the Startup Nation Central report. Startup Nation Central CEO Avi Hasson summarized 2025 with cautious optimism about the future. 

“2025 was not about a return to business as usual; it was a pivot toward high-conviction maturity,” Hasson said. 

“Israel isn’t just a source of innovation, it is the global anchor for critical technologies like AI and cybersecurity."

However, Startup Nation Central has urged the Israeli government to increase its support for Israeli tech industry, which constitutes a central growth engine in the Israeli export-driven economy. 

In September, Israel announced that it would invest up to $60 million to strengthen local technology companies and innovation. 

“For the first time, we are launching a tender to establish state-guaranteed funds for [defense] innovation,” Accountant General Yali Rothenberg stated. 

“The funds will encourage investment in advanced technologies in the defense sector, companies that establish manufacturing activity in Israel, with a focus on companies with growth potential, while bringing competition to the Israeli defense market,” Rothenberg added.