Israeli tech startups raise $2.9 billion, hit two-year fundraising peak

Israeli tech funding peak: Israeli technology startups have achieved a significant milestone in the second quarter of 2024, raising $2.9 billion, marking the highest fundraising level in two years, according to IVC Data and Insights and LeumiTech. Despite ongoing tensions including Israel's conflict with Hamas, the sector has demonstrated robust fundraising capabilities.

Preliminary figures reveal that the $2.9 billion total includes a substantial $965 million raised by cybersecurity firm Wiz. Excluding this, startups still managed to raise $1.94 billion, up 19 per cent from the $1.63 billion raised in the first quarter.

New faces, big money

The majority of funds, 62 per cent of the total, came from six deals exceeding $100 million each, including Wiz. The report also highlights an increase in first-time fundraisers and new foreign investors in the Israeli tech scene during the second quarter.

Following a slowdown in fundraising since mid-2022 due to global economic challenges and domestic policy uncertainties (including now-scrapped judicial reforms), Israeli tech firms have maintained steady funding levels post the conflict that began in October last year.

Comprehensive data is expected to be released by mid-July.

(With Reuters Inputs)