Google’s $32B Wiz deal anchors historic Q1 for Israeli tech
Total M&A hit $35.9B, early-stage funding recovered, and global confidence held.
Israel’s high-tech sector kicked off 2025 with force, not only reversing a two-year funding decline but also recording the largest merger and acquisition (M&A) quarter in its history, according to new data from Startup Nation Central. Private Israeli tech companies raised $3.2 billion across 185 deals in Q1 2025, up 12% from the previous quarter and 14% year over year.
The standout figure, however, came from M&A activity: $35.9 billion in exit value was recorded across 38 deals—shattering previous records. That sum includes Google’s $32 billion acquisition of cybersecurity unicorn Wiz, the largest exit in Israeli tech history and among the biggest tech exits globally. Even without that headline-grabbing deal, M&A volume reached $3.9 billion, the strongest showing since Q3 2023.
These numbers come amid a persistent decline in deal volume, which has fallen steadily since early 2022. But a shift toward fewer, larger investments—particularly in mature companies—signals a market recalibration rather than retreat. The median funding round reached $10 million in Q1, more than triple the median in early 2023.
Early-stage companies also showed signs of resilience. Ninety-nine seed and Series A rounds were completed this quarter, totaling $800 million—an uptick from both the previous quarter and the same period last year. In contrast, mid- and late-stage funding cooled, with just 17 such rounds raising $900 million.
Cybersecurity continued to dominate sectoral funding, drawing $900 million, or 35% of all capital raised. Island, a secure enterprise browser platform, raised $250 million, while Cybereason followed with $120 million. Fintech and insurtech also attracted attention, led by Rapyd’s $500 million raise. Industrial tech startups such as Quantum Machines ($170 million) and Augury ($75 million) brought in a combined $300 million.
The report also points to robust global investor involvement. Although the total number of active investors dropped to 236—a 16% quarterly and 22% annual decline—international investors participated in 67% of all funding rounds, the highest rate in over two years. That global backing helped fuel high-profile exits beyond Wiz, including Next Insurance’s $2.6 billion acquisition by Munich Re and SoniVie’s $400 million deal with Boston Scientific.
The data reflects a maturing innovation ecosystem increasingly driven by global capital and focused on scaling proven models. “This level of M&A activity, alongside stable investment in quality companies, shows continued international confidence in Israeli tech,” said Startup Nation Central in its summary.
