Missile alerts, reserve call-ups, hesitant investors—all of it sounds grim. And yet, the new report from the Israel Innovation Authority (IIA) shows something entirely different: Right now, in the midst of war, Israel’s high-tech sector has had a record year.
More than 1,500 so-called “Deep Tech” companies in the country are working on technologies that can transform not just individual products but entire industries. Deep Tech refers to firms focused on long-term, research-intensive developments: artificial intelligence, cybersecurity, medical technology, semiconductors, or agricultural innovations.
Since 2019, these companies have collectively raised more than $28 billion in capital, with their total value now standing at $177 billion. This makes Israel, right after the US, one of the world’s leading locations for Deep Tech. Around one-fifth of all global investments in cybersecurity now flow to Israel.
And there’s another figure that leaves even seasoned industry experts astonished: The sale of cybersecurity company Wiz to Google for $32 billion was the largest transaction in the history of Israeli high-tech. This deal made 2025 a record year for “exits.”
For the analysis, the IIA brought in DealRoom...
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