Israel’s technology sector delivered a powerful signal of resilience in 2025, as acquisitions and public listings soared to levels rarely seen in the past decade. According to PwC Israel, the total value of tech deals jumped to nearly $59 billion this year, underscoring sustained global appetite for Israeli innovation even amid prolonged regional conflict and heightened geopolitical uncertainty. The scale of activity marks a sharp reversal from the subdued environment of 2024 and repositions Israel as one of the world’s most dynamic technology hubs.

Mega-Deals Redefine the Market Landscape

The defining feature of this year’s surge was the outsized role of blockbuster transactions. Alphabet’s $32 billion acquisition of cybersecurity firm Wiz alone reshaped the annual totals, making it one of the largest technology deals ever involving an Israeli company. Even excluding Wiz, PwC estimates that transaction value still doubled year over year to $32 billion, highlighting that momentum extended well beyond a single headline event.

This concentration at the top end reflects a strategic shift among global buyers. Large technology and financial players appear increasingly willing to deploy capital into proven Israeli platforms with global scale, particularly in cybersecurity and fintech. In an environment where organic growth is harder to secure, acquisitions of mature, revenue-generating Israeli firms offer a faster route to innovation and market expansion.

IPO Market Reopens Despite Uncertainty

Equally notable was the reopening of the IPO window. Seven Israeli tech companies went public in 2025 with a combined valuation of $14.6 billion, a dramatic increase from just $781 million across six listings in 2024. High-profile Nasdaq debuts such as Navan and eToro, valued at $6.2 billion and $4.4 billion respectively, signaled renewed investor willingness to underwrite growth stories tied to Israeli technology.

Psychologically, the return of IPO activity matters as much as the capital raised. Public listings serve as validation points for private valuations and provide liquidity pathways for founders and early investors. The rebound suggests that global markets are once again willing to look through near-term geopolitical risk and focus on long-term earnings potential.

A Barbell Deal Structure Emerges

While headline figures impressed, PwC highlighted a more nuanced internal shift. Medium-sized deals in the $100 million to $500 million range declined, while activity increased at both the smaller and larger ends of the spectrum. This barbell pattern reflects cautious capital allocation: investors are either making targeted bets on early-stage innovation or committing aggressively to category leaders, with fewer incremental mid-market transactions.

Six acquisitions exceeded $1 billion this year, including the purchases of fintech firms Next Insurance and Melio. These deals reinforce Israel’s strength in enterprise software, payments, and risk technology—segments aligned with global digitization and regulatory complexity.

Talent, Mobility, and Long-Term Confidence

Despite the surge in deal activity, structural challenges remain. PwC noted that more Israeli tech entrepreneurs and managers are relocating parts of their operations overseas, responding to security risks and global competition for talent. Yet companies continue to rely heavily on Israel’s engineering depth and innovation culture, which remain difficult to replicate elsewhere.

For investors in both Israel and the U.S., the message is clear: capital follows capability. The ability of Israeli tech firms to attract record investment during a period of conflict underscores a perception that the country’s innovation engine is not only intact, but adaptable under pressure.

Looking ahead, the sustainability of this momentum will depend on global risk appetite, interest-rate conditions, and Israel’s ability to retain talent while scaling internationally. Still, the scale and composition of 2025’s deals suggest that Israeli technology has reasserted itself as a core pillar of global innovation markets.