Israel Hits Record $10.5 Billion In Startup Acquisitions

Israel’s tech sector achieved a historic milestone in 2024, with startup acquisitions reaching $10.5 billion—the highest in the country’s history. According to a report presented at the annual 2024-2025 Trends and Forecasts Conference in Tel Aviv, Israeli startups also raised an impressive $8.1 billion in funding, surpassing the $7.3 billion from the previous year.

Fewer Deals, Larger Investments

Despite the success, the number of deals dropped significantly from 682 in 2023 to 434 in 2024. However, the increased funding indicates that successful startups managed to secure larger investments.

Asaf Horesh, managing partner at Vintage Investment Partners, noted, “The increase in total funds raised, even with fewer deals, shows a trend toward larger-scale investments in high-potential companies.”

Challenges Amid Global and Domestic Uncertainty

Israel’s economic achievements come against the backdrop of global economic instability and ongoing conflict. A survey conducted by Fusion VC revealed that 43% of investors consider political and security instability their top concern. Additionally, 38% pointed to challenges in raising funds for new VC initiatives.

Guy Katsovich, co-founder of Fusion VC, highlighted concerns about the ecosystem’s reliance on cybersecurity. “Israel needs to diversify its tech focus to build large-scale consumer businesses,” he said.

Defense Technologies in the Spotlight

The conference also featured a discussion with Danny Gold, head of MAFAT and the developer of Israel’s Iron Dome. Israeli defense technologies, particularly in air defense and cybersecurity, have garnered global interest, further boosting investor confidence.

Looking Ahead

As Israel’s tech ecosystem continues to evolve, the focus on diversification and attracting foreign investment remains critical. Despite the challenges, the country’s ability to achieve record-breaking numbers reflects the resilience and innovation driving its startups