ByTHE MEDIA LINE STAFF

Israel’s tech sector saw record-breaking merger and acquisition activity in 2025 even as private funding slowed, according to Startup Nation Central’s Q3 report based on Finder data. 

Private capital raised in the third quarter totaled $2.4 billion, down 38% from Q2 when excluding Safe Superintelligence’s $2 billion round. The number of deals shrank to 141, a 24% drop from the previous quarter and 38% year over year.

Despite the slowdown,the median round size climbed to $10.5 million, a record high and 50% above last year, signaling investors are concentrating on fewer but larger bets.

M&A activity told a different story. Q3 logged $31.8 billion across 31 transactions, led by Palo Alto Networks’ $25 billion purchase of CyberArk, the second-largest acquisition in Israeli history. Other significant deals included the $2 billion takeover of

Verint Systems. Cybersecurity dominated exits, accounting for 58% of value, with acquisitions of Aim Security for $350 million and Findings for $305 million.

IN JANUARY, Bill Ackman and his wife Neri Oxman bought 4.9% of the Tel Aviv Stock Exchange for $25 million in a move that signaled confidence in the Israeli economy. The writer asks: What if similarly influential businesspeople set aside a cumulative investment of $1 billion in Israeli tech startup
IN JANUARY, Bill Ackman and his wife Neri Oxman bought 4.9% of the Tel Aviv Stock Exchange for $25 million in a move that signaled confidence in the Israeli economy. The writer asks: What if similarly influential businesspeople set aside a cumulative investment of $1 billion in Israeli tech startup (credit: AMIR COHEN/REUTERS)

Israeli start-ups gain big in 2025

Across the first three quarters of 2025, Israeli startups raised $11.9 billion in private funding, up 13% from last year, despite a 22% decline in deal count. M&A activity soared to $71 billion, nearly five times 2024 levels, fueled by the CyberArk deal and

Wiz’s $32 billion sale. IPOs also gained momentum, with eToro raising $700 million on Nasdaq and Via Transportation $493 million on the NYSE.

“Q3 2025 highlighted a market in transition,” said Avi Hasson, CEO of Startup Nation Central. “We are seeing fewer rounds, but at record sizes, while global buyers are making bold bets on Israeli tech, especially in cybersecurity.”