Opinion
Global confidence in Israeli tech shines through mega-deals
"Beyond the impressive numbers and mega-deals, the core strength of Israeli high-tech lies in its ability to thrive under uncertainty," writes attorney Nataly Margalit of Arnon, Tadmor-Levy law firm.
Despite a year marked by prolonged conflict, security uncertainty, and economic turbulence, Israel’s high-tech industry continues to demonstrate remarkable resilience. As one of the economy’s strongest and most consistent growth engines, technology companies are closing major deals, raising substantial investment rounds, and launching innovative products.
Fundraising figures from the first half of 2025 highlight this strength: Israeli startups raised approximately $9.3 billion, reflecting a significant rebound in the capital markets.
A Strong Recovery in Investment Activity
According to data from Startup Nation Central (SNC), this represents a 54% increase compared to the second half of 2024 - the strongest period the sector has seen since 2022. These numbers underscore the trust that international investors continue to place in Israeli innovation and talent, even in uncertain times.
The Key to Resilience: Global Demand and Reach
This stability stems from a unique combination of global demand for the solutions Israeli technologies provide, financial soundness, and rapid adaptability. Rather than slowing progress, the security situation only reinforces the need for areas where Israeli companies excel - cybersecurity, identity protection, and digital infrastructure for remote work. In an era where cyberattacks and data breaches are routine, Israel’s expertise stands out even more sharply.
Another pillar of resilience lies in the industry’s global footprint. With a diverse customer base spanning North America, Europe, and Asia, revenues are not overly dependent on the domestic market. When one region faces difficulties, others help offset the impact. In addition, Israel’s supportive ecosystem - including the Israel Innovation Authority, national funds, and research programs - continues to operate even during emergencies, treating high-tech as a national strategic asset.
Investors See Israel as a Proven Source of Innovation
Israel’s reputation as the “Startup Nation” remains strong. Global investors continue to view the country as a reliable hub of innovation, confident that Israeli companies are particularly skilled at navigating crises. Years of instability have forged a culture of adaptability and agility, giving Israeli high-tech a competitive edge in a volatile global economy.
Mega-Deals Signal International Confidence
One of the clearest expressions of this confidence came with the recent $25 billion acquisition of Israeli cybersecurity leader CyberArk by U.S.-based Palo Alto Networks. Our firm had the privilege of representing Palo Alto Networks in this historic transaction - the second-largest deal in Israeli high-tech history, following the Google-Wiz deal earlier this year. This transaction highlights the international recognition of Israeli technologies as essential to global markets.
A Competitive Advantage Born of Uncertainty
Beyond the impressive numbers and mega-deals, the core strength of Israeli high-tech lies in its ability to thrive under uncertainty. A culture of improvisation, fast execution, and decision-making under pressure - embedded in the local DNA - translates into clear business advantages. Israeli companies are adept at managing distributed teams, leading remote projects, and solving problems in real time. These skills have become indispensable in today’s global landscape.
While headlines often emphasize Israel’s security challenges, a different story unfolds beneath the surface: one of growth, international partnerships, and the strengthening of Israel’s role as a global technology hub. War may shift daily priorities, but it cannot halt the drive to innovate, build, and reach new heights on the global stage.
Attorney Nataly Margalit is a partner in the High-Tech and Mergers & Acquisitions practice at Arnon, Tadmor-Levy law firm.
