AI21 Labs founders.

May 2025 in Israeli tech funding: Over $950 million in 18 deals

Mega rounds by AI21 Labs and Classiq meant Israeli startups raised nearly $1 billion over the past month.

Over $950 million was raised by Israeli startups across 18 deals in May, a decline of more than 30% compared to the over $1.4 billion raised during the same month last year. However, more than two-thirds of last May’s total came from a single deal: Wiz’s record-setting $1 billion round.
The largest deal officially registered in May was by AI21 Labs, which secured a $300 million Series D. The other mega round came from quantum computing company Classiq, which raised $110 million in a Series C.
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מוסף חג העצמאות 25.4.23 מגזין סטארטפים - חברת ai21- אמנון שעשוע יואב שוהם אורי גושן
מוסף חג העצמאות 25.4.23 מגזין סטארטפים - חברת ai21- אמנון שעשוע יואב שוהם אורי גושן
AI21 Labs founders.
(Photo: Orel Cohen)
Five other companies raised over $50 million each: Orca AI ($72.5M), Empathy ($72M), Ox Security ($60M), Kela ($60M), and PhaseV ($50M).
See the full list of May’s deals below. (This includes funding rounds of over $5 million that were officially announced during May):
29.5.25
The Israeli startup aims to cut project delays in half and expand across North America and Europe
With backing from insurance giants, the startup is scaling its AI-powered bereavement platform across North America
28.5.25
After three years at Akamai, which acquired Guardicore for approximately $600 million in 2021, Pavel Gurvich and Ariel Zeitlin have launched a new venture that has already received significant backing from VC firms Greylock and Battery
27.5.25
The Israel startup offers observability and testing tools to prevent generative AI failures in production
The Israeli company aims to automate and optimize finances across banks, loans, credit cards, and savings
26.5.25
Backed by Insight Partners and Bessemer, the Israeli startup powers self-evolving GTM systems for firms like Brex and SailPoint
22.5.25
The startup bets on federated AI as the key to innovation in health, finance, and biopharma
21.5.25
The stealth Israeli startup is the year’s biggest defense-tech Seed deal, as founders turn focus from gaming and cybersecurity to battlefield innovation
13.5.25
Company targets labor-heavy industries with audit agents that replace manual reviews
The company is developing DeltaStem, an AI-driven platform designed to improve the production of human cells for therapeutic use
With over 30 global customers, the AI startup targets inefficiencies in clinical trials
Founded after the October 7 attacks, the company is developing a battlefield operating system to help militaries integrate AI and commercial tech
12.5.25
With a groundbreaking investment, Classiq aims to lead the future of quantum software, positioning itself as a cornerstone in the rapidly growing quantum computing market
10.5.25
Backed by Google and Nvidia, the Tel Aviv company aims to challenge frontier AI firms with a new system for enterprise reliability
7.5.25
Israeli firm says it can reduce unsold goods by replacing forecasts with adaptive AI systems
By focusing only on threats that matter, the Israeli firm is challenging how enterprises approach AppSec
The Israeli company offers studios scalable tools for content creation and player engagement
6.5.25
With over 80 million nautical miles of visual data, the startup aims to lead the future of autonomous shipping
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