Leumitech, the high-tech banking arm of Bank Leumi, and IVC, a provider of data, quantitative research, and business information, have published preliminary data from the IVC-LeumiTech Israeli Tech Review report for the fourth quarter and 2024.
According to the report, capital raised in 2024 amounted to approximately $9.58 billion, reflecting an increase of 38% in funding volume. In addition, total funding raised in Q4 surged by approximately 60% compared to Q4 of 2023, with a 44% rise in the number of deals.
Mega-rounds (over $100 million each) accounted for 48% of the total funds flowing into the local tech sector this year. Even excluding these rounds, 2024 shows growth compared to the previous year. The report also revealed that the cybersecurity sector stood out in 2024, with total fundraising in the field representing 38% of the year’s total.
In Q4 alone, 22 fundraising rounds in cybersecurity amounted to approximately $850 million, about 36% of the total capital raised during the quarter. Investor involvement stabilized in 2024, remaining at a level similar to 2018–2019, though the number of new investors continues to decline.
LeumiTech CEO Maya Eisen Zafrir said, “In summarizing the challenging year we have been through, we are witnessing the return of Israeli high-tech to growth in the main parameters, which illustrates its strength and quality.
We see that there are companies that already know how to translate the technologies that were born - or tried in - the war into actual deals, along with the adoption of innovative work methods that were often born as a result of these challenging times.
These give high-tech an excellent starting point for the coming year. The reduction in the interest rate in the US also gives a tailwind to Israeli high-tech, which is greatly affected by macro conditions, and we expect that 2025 will continue this trend.”
Ben Klein, CEO of IVC: “No matter how we looked at the data, 2024 ended with a clear growth trend in Israeli high-tech. The challenges facing the local industry are well known, but it seems that high-tech is succeeding in coping and continuing to be the growth engine of the Israeli economy.”