Israel Sees Continuous Surge in Investments for Startups in 2025
Written by Esther Loewy, MIBA Senior Director of Market Expansion – Michigan/US
Mega Investment Rounds for Israeli Startups in February
Israeli startups have raised $1.25 billion in the first two months of 2025, a significant increase from $800 million during the same period in 2024. In February alone, Israeli startups secured over $550 million, with notable financing rounds including:
- Quantum Machines, a quantum computing company, which raised $170 million.
- Dream Security, which raised $100 million.
- Augury, an industrial AI company, which raised $75 million.
- Blockaid, an onchain security company, which raised $50 million.
- Voyantis, a predictive AI company, which raised $41 million.
These investments reflect a continued robust venture capital environment in Israel. Read more here.
The State of Pre-Seed in Israel: 2nd Annual Report by Fusion VC
Fusion VC’s latest report on Israel’s pre-seed market reveals key insights, drawing from participation by 40 VC firms, 51 angel investors, and tracking 164 investments by VC firms and 201 by angels. Despite global market challenges, the report highlights that early-stage investments remain critical for startup founders looking to validate and scale their concepts. Read the full report here.
Key Trends from the Report:
- Lower Valuations: For the first time in nearly a decade, pre-seed rounds are seeing lower valuations, opening opportunities for angel investors and micro funds.
- Higher Bar for Pre-Seed Funding: Both VCs and angel investors are becoming more selective, now looking for stronger signals of validation, such as proof of concept, initial pilots, or design partnerships, before committing at the pre-seed stage.
- Dominance of SAFE: The SAFE (Simple Agreement for Future Equity) has become the standard investment vehicle for pre-seed rounds, favored by both VCs and angel investors.
- More Active Angel Investors: Seed rounds have grown larger, with high-profile angels increasingly “securing their spot” in competitive rounds. The average pre-seed check size for VCs ranges from $300,000 to $500,000, while angel investors typically contribute between $50,000 and $100,000.
- Leap from Pre-Seed to Seed: For two consecutive years, 50% of startups that raised a pre-seed round (up to $1.5 million) successfully transitioned to raise a seed round.
These insights underscore a growing, dynamic pre-seed investment landscape in Israel, which continues to evolve even amidst global uncertainties.
