According to a report from Israel, startups in the country generated $8.1 billion in funding during 2024. At the same time, mergers and acquisitions set a new record at $10.5 billion in deals.
The report was published during the annual “2024-2025 Trends and Forecasts” conference, led by Fusion VC and its founder Guy Katsovich.
A survey conducted by Fusion, the conference organizer, revealed that 38% of investors face challenges in raising funds for new venture capital initiatives, while 10% voiced concerns about increased competition from foreign funds.
Asaf Horesh, managing partner at Vintage Investment Partners, presented the report on the performance of funds and startups over the past year.
The number of deals declined in Israel from 682 in 2023 to 434 in 2024. The deal value increased from $7.3 billion to $8.1 billion during the same period. The report notes that for all of 2023 startups received $9.2 billion in funding
Fusion’s investor survey indicates that political and security instability were cited as top concerns by 43% of respondents, while 38% said difficulties in raising funds for new VC initiatives.
Attracting foreign investment is another critical issue, as there are worries about global money hesitating due to the environment.
Katsovich explained:
“The survey also revealed that 10% of Israeli investors fear competition from foreign funds. There is also concern that the Israeli tech ecosystem is overly concentrated in cybersecurity, with too few resources directed toward consumer-focused companies. This limits the potential for Israel to build large-scale consumer businesses. Without a shift in investment trends, the market will remain heavily skewed toward cybersecurity startups.”
Fusion VC and Accelerator claims to be Israel’s most active and leading pre-seed investor. Portfolio companies include Innplay Labs (acquired for $300M), Agora, DigitalOwl, Hoopo, Obol, Samplead, Quack, and more.