Guides Israel

Venture capital in Israel: trends by stage, industry vertical and more.

Israel

Introduction

With a notable concentration of tech companies, Venture Capital firms and research institutes, Israel is one of the top countries for VC activity per capita globally, and is a notable hotspot for cyber and security tech. Israel is home to over 4.5k+ funded startups which raised over $6.5B in VC investment in 2023. More than 100 unicorns were born out of the country, all of which can be explored here on the platform.
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Venture Capital

While investment has fallen from 2021's record-breaking levels, following global trends, 2024 shows signs of improvement with over $2.5B invested in the second quarter, the best quarter in the last two years.

By stage

Early stage At early stage, VC investment has remained fairly stagnant in the last five years. Access early-stage funding rounds into Israeli startups here on the platform. Breakout stage Access breakout-stage funding rounds into Israeli startups here on the platform. Scaleup stage Access scaleup-stage funding rounds into Israeli startups here on the platform. Distribution of VC investment into HQ and relocated Israeli startups Homegrown companies which moved their headquarter outside of Israel, such as Trax and Claroty, were mostly responsible for the 2021 surge in VC investment.
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By industry

Health, Enterprise Software and Security are the top funded industries in 2024.
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By segment

Cybersecurity, Oncology and Semiconductor Designers and Manufacturers are the top funded segments in 2024. VC allocation by industry: Israel vs Global A well known hotspot for cyber innovation, Enterprise Software and Security are the most funded categories in Israel in the last five years, both over-indexing compared to the global average. Discover the VC investment trends by industry in Israel here on the Dealroom platform.
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Investors

Most active investors into Israel Explore the data for the most active investors into the Israel startup ecosystem as well as the most active Israeli investors here on the platform.
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International comparisons

Leading on a per capita basis Israel ranks 10th globally and 4th in EMEA for total investment raised between 2019 and 2023. On a per capita basis, Israel is a global leader, ranking 2nd worldwide and 1st within the EMEA region. Country level benchmarking Compare the Israel startup ecosystem globally in the table below or here on the Dealroom platform.
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Unicorns

Israel has produced the 4th highest number of unicorns worldwide and the 2nd highest number in EMEA. Israeli unicorn talent is fostering the next generation of startups in Israel and abroad. Many Israeli unicorns, such as IronSource and Gett, have been instrumental in driving subsequent waves of entrepreneurship, as staff alumni go on to found more startups in Israel and abroad. More than 100 unicorns were born out of the country, all of which can be explored here on the platform.
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Discover Israeli unicorn Factories

Universities and Research

The Weizmann Institute of Science ranks as the top university in EMEA by number of active patents. Learn more about Israeli startup ecosystem institutions seen below here on the platform.
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Related Content

Reports: Tel Aviv ecosystem report 2023 Reports: Europe and Israel’s startup founder factories – the founder journey Reports: Browse all Israel ecosystem reports on Dealroom Dealroom Data: Explore all 4.5k+ funded startups Dealroom Data: Explore all funding rounds in Israeli startups