In a powerful signal that the Israeli innovation engine is roaring back to life, startups across the nation raised a staggering $550 million in May 2025 alone — and that’s just the amount publicly disclosed. Industry insiders suggest the actual figure may be significantly higher, as stealth-mode startups and undisclosed investments remain off the radar.

This monthly haul pushes the total capital raised by Israeli startups in the first five months of 2025 to $3.15 billion, underscoring the resilience and adaptability of Israel's high-tech sector amid shifting global market winds.

A Tech Ecosystem Rebounding with Force

The first quarter of 2025 already hinted at this upward momentum. According to data from IVC-LeumiTech, Israeli privately-held tech companies raised $2.1 billion in Q1, representing a 24% increase compared to Q1 2024, though showing a 12% dip from the final quarter of 2024 — a sign that while the market is regaining strength, it remains dynamic and competitive.

Year-on-Year Context: A Market Reawakens

Looking back, Israeli tech raised:

• $9.58 billion in 2024 (up 38% from 2023),

• $6.9 billion in 2023, a post-pandemic dip,

• $15 billion in 2022, and

• A record-shattering $25.6 billion in 2021, the peak of the global tech boom.

The 2024 recovery laid the groundwork for what 2025 is shaping up to be — a renewed era of calculated growth, smarter investments, and sector-wide innovation.

Big Winners in May 2025: Diverse, Disruptive, and Driven

May’s standout funding rounds showcased the breadth and brilliance of Israeli innovation:

• Classiq Technologies – $110 million raised
  Israel's quantum software trailblazer is cementing its place as a global leader in quantum computing platforms, attracting strong investor confidence for its revolutionary circuit design automation tools.

• Orca.AI – $72.5 million raised
  This maritime tech disruptor is charting a smarter course for the shipping industry. With AI-powered navigation systems, Orca.AI is turning oceans into highways of autonomous safety.

  Investment News:
  
  Orca AI secures £54.2 million Series B Investment led by Brighton Park Capital
  
  Congratulations to Yarden Gross, Dor Raviv and the team on the investment!
  
  Full press release here: https://t.co/9n5aPsepub#UKTechInvestmentNews #Investment #Deallite #SeriesB pic.twitter.com/XnvpIBMjPU

  — Deal Lite (@DealLiteUK) May 8, 2025

• Empathy – $72 million raised
  Transforming the most delicate human experiences into streamlined digital solutions, Empathy’s grief support app has resonated with investors who see both social value and scalable impact.

• Ox Security – $60 million raised
  In a time of heightened cyber threats, Ox Security is reinforcing Israel’s reputation as the “Startup Nation” of cybersecurity. Its platform, which protects entire DevOps pipelines from end to end, secured serious backing from global venture funds.

More Fuel in the Pipeline

These four deals alone make up over 55% of May’s total raised, but the actual figure is undoubtedly higher. Many Israeli startups are operating in stealth mode, particularly in deep tech, defense-tech, and AI verticals — often securing early-stage funding under strict NDAs or through foreign partnerships.

In 2024, Israeli startups raised $10B, ranking 3rd globally after SF & NYC. With NIS 2B in support, sectors like AI, HealthTech & Bio-Convergence continue to scale and lead. Reform, reinvestment, and resilience - this is innovation at work.

Read here: https://t.co/3UQEA0B9dg

— Israel Innovation Authority (@ILInnovationAut) May 5, 2025

The Takeaway: Israel’s Startup Nation Isn’t Just Back — It’s Recalibrated

Despite global economic uncertainties and regional instability, Israel’s startup sector is proving to be not only resilient but strategically evolving. The capital inflow suggests renewed investor confidence, diversified sector strength, and continued appetite for Israeli ingenuity.

As 2025 progresses, all signs point to Israel reasserting its role as a global innovation powerhouse — not just in software and cybersecurity, but across quantum computing, maritime AI, healthtech, and next-gen infrastructure.