
As a undertaking capital investor (prior to now at Google Ventures and now with my company, Remagine Ventures), I’ve all the time been interested in the Israeli tech scene. The “Startup Country” has a name for grit, innovation, and an uncanny skill to thrive within the face of adversity. 2024 was once a stark reminder of this reality.
The yr was once tricky in virtually each account. Startups are exhausting as it’s, however upload on most sensible a battle on more than one fronts (with rocket sirens virtually day-to-day and demanding a part of the staff tied to order carrier), much less world traders touring to Israel, uncertainty for purchasers, and so forth and so on. You get the image. With the quantity of stress the financial system and nation had been underneath, it could were affordable to be expecting that 2024 could be a dud yr for Israeli tech. But, amidst the turmoil, one thing abnormal came about: the Israeli startup ecosystem no longer handiest endured, however it carried on and thrived.

The 2024 annual file by means of Startup Country Central and the two024 Israeli tech evaluate by means of IVC & Leumitech each draw a good image for the Israeli tech ecosystem regardless of the difficult cases:
Founders endured to construct, traders doubled down, and the sector took understand. Sequoia, Greylock and others put boots at the floor and dedicated to making an investment in Israeli startups.
The choice of new firms has long gone down however the high quality has most often risen, as I latterly commented in my fresh interview with Calcaslist. Founders that make a selection to begin firms at the present time know what they’re up towards.
Startups in Israel defied expectancies, elevating $10.6 billion in investment formally, a 31% build up from 2023 (pre-war). The ‘actual’ quantity estimated to be nearer to $12.2 billion because of unreported rounds, as reported by means of Globes.
To position this determine in context:
UK startups raised €16.4B in 2024
German startups raised $8.2B in 2024, up 4% yr on yr
Eastern startups raised $3.7B in VC in 2024.
Dutch startups raised $2.7B in 2024
Supply: The State of the French Tech Ecosystem 2024
Cybersecurity firms won a good portion of the worldwide investment, accounting for $3.8 billion or 36% of the whole and a 90% year-over-year build up. AI represented 47% of all investments in 2024, which now make up 30% of Israel’s startup ecosystem.
2024 additionally noticed a resurgence of mega-funding rounds, with a complete of $4 billion raised throughout quite a lot of sectors, representing 41% of all capital raised.
Exits grew by means of 70% in 2024, attaining $15.8 billion, a document exceeding even the 2021 figures
Israeli startups was sexy acquisition objectives for Nvidia, Salesforce, SAP and others.
The choice of investments by means of overseas traders surpassed investments by means of Israeli traders. The overall choice of overseas traders additionally outnumbered the whole choice of Israeli traders in 2024, however it was once quite down from 2023 (-7%). It didn’t lend a hand that flights to Israel in the second one part of 2024 were priced upper because of restricted availability.
This enlargement defied international developments and situated Israel because the third-highest recipient of startup investment globally, trailing handiest Silicon Valley, New York and London.
So, what fuelled this resilience?
Before everything, it’s the indomitable spirit of Israeli marketers. They’re familiar with working in a high-pressure surroundings and are adept at adapting to converting cases.
The battle additionally highlighted the crucial significance of sectors like cybersecurity and defence tech, spaces the place Israel has a confirmed observe document of world management.
Additionally, the maturation of the Israeli tech ecosystem performed a task. Israel is evolving from startup country to “scale up country” with firms demonstrating their skill to develop and compete on a world degree. Numerous 2d and 0.33 time founders are coming again to construct firms with international ambitions and they’re much less concerned with promoting early.
This, in flip, attracted a surge of funding from each native and world VCs.
The IVC-LeumiTech 2024 file displays a powerful restoration in Israeli tech investment, with a 40% build up in capital raised, 15% extra investment rounds, and 7 new unicorns in comparison to 2023.
Taking a look forward to 2025, I see immense alternative
Buyers will focal point on fine quality alternatives in sectors with long-term enlargement attainable. Moreover, as regional instability eases, Israel is predicted to take pleasure in higher investments, mirroring developments noticed in earlier post-tension sessions.
Avi Hasson, Startup Country Central CEO (supply)
The demanding situations of 2024 have cast a fair more potent and extra resilient ecosystem. I imagine the battle is imminently over, if the ceasefire holds and all Israeli hostages are returned. Trump’s access to the White Area, together with his cupboard alternatives and advisors like Elon Musk, David Sacks coupled with higher productiveness coming from AI automation gear, may give the tech business an enormous spice up over the following yr or two.
Early-stage firms, specifically the ones in synthetic intelligence, and the ones concentrated on the USA marketplace are poised for vital enlargement. I imagine that the USA investor group is an increasing number of recognising the original price proposition of Israeli tech and founders.
2024 was once a testomony to the abnormal resilience of the Israeli startup ecosystem. As we transfer into 2025, I’m excited to proceed making an investment on this dynamic and cutting edge marketplace. The way forward for Israeli tech is vibrant, and the most productive is but to come back. I’m excited to proceed making an investment on this colourful ecosystem and be part of its endured luck tale.
Eze is managing spouse of Remagine Ventures, a seed fund making an investment in formidable founders on the intersection of tech, leisure, gaming and trade with a focus on Israel.
I am a former basic spouse at google ventures, head of Google for Marketers in Europe and founding head of Campus London, Google’s first bodily hub for startups.
I am additionally the founding father of Techbikers, a non-profit bringing in combination the startup ecosystem on biking demanding situations in improve of Room to Learn. Since inception in 2012 now we have constructed 11 faculties and 50 libraries within the creating international.
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