IVC-LeumiTech: Tech fund elevating jumps 24% in Q1

Israeli privately-held tech corporations have raised $2.13 billion within the first quarter of 2025, up 24% from the corresponding quarter of 2024, IVC-LeumiTech studies.

The IVC-LeumiTech survey for the primary quarter discovered that there have been about 200 financing rounds accomplished, together with financing rounds that weren’t revealed, down 10% from the variety of financing rounds within the first quarter of 2024.

Regardless of the 24% leap within the sum of money raised within the first quarter of 2025, in contrast with the primary quarter of 2024, there was a 12% fall from the $2.41 billion raised within the previous quarter – the fourth quarter of 2024. There was additionally a transparent fall within the variety of first investments within the first quarter of 2025, with buyers preferring to spend money on corporations already of their portfolio.

The primary quarter of 2025 noticed two distinctive financing rounds of over $200 million with fintech firm Rapyd elevating $250 million, alongside an equal quantity raised in debt, and cybersecurity firm Island elevating $250 million. These two financing rounds represented 25% of all of the capital raised within the first quarter. Nonetheless, even after deducting these big financing rounds, the quantity raised within the first quarter of 2025 was nonetheless 8% larger than the quantity raised within the first quarter of 2024.

Cybersecurity leads

The cybersecurity sector continues to guide within the quantity of funding in Israeli corporations – Israel’s main tech sector as demonstrated earlier this month by the $32 billion acquisition of cloud safety firm Wiz by Google. Complete investments in cybersecurity startups within the first quarter amounted to $894 million, 42% of all the cash raised, in 24 financing rounds (25% of all rounds) – which signifies a transparent pattern of the energy of the business.

LeumiTech CEO Maya Eisen Zafrir mentioned, “We began the 12 months with the Wiz deal, which is outstanding by historic requirements. I hope that the constructive sentiment that we’re already listening to from international buyers across the deal will translate into constructive momentum for the remainder of the 12 months. On the identical time, we’re inspired to see a rise in follow-on investments, which point out the need of buyers to deepen their grip on Israeli high-tech.”

Printed by Globes, Israel enterprise information – en.globes.co.il – on March 31, 2025.

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