Israel’s technology ecosystem has long been a key driver of economic growth, and despite a tumultuous year marked by war and widespread military reserve duty, the sector has continued to flourish. One key indicator of its resilience is funding—a critical measure of a tech hub’s success.
According to Startup Nation Central, Israeli tech companies secured more than $12 billion in private funding in 2024, alongside record-setting M&A activity of $15.8 billion. The high-tech sector’s contribution to GDP also rose by 2.2% over the past year.
Breaking down the numbers further, the report highlights that Israeli tech firms raised $10.6 billion in reported funding—an increase of 28% from 2023’s $8.3 billion. Factoring in yet-to-be-reported rounds and undisclosed investments, the total is estimated at $12.2 billion, reflecting a 31% increase over the previous year’s adjusted figure.
Beyond the sheer volume of investment, the size and significance of funding rounds provide further evidence of the sector’s strength. In 2024, Israeli tech saw 15 mega-rounds—investments of $100 million or more—totaling $4 billion. These accounted for 41% of total funding, a significant jump from 2023’s nine mega-rounds worth $2 billion (22% of total funding). The increase underscores Israel’s growing appeal for global investors backing scale-up companies.
A growing presence of global investors
Leading venture capital firms have long had a presence in Israel, and 2024 was no exception. Major investors such as Battery Ventures, Bessemer Venture Partners, Sequoia Capital, Lightspeed Venture Partners, Greylock Partners, Insight Partners and Index Ventures remain active in the country. However, one name had been notably absent—until now.
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Andreessen Horowitz, one of Silicon Valley’s most influential venture capital firms, has significantly increased its footprint in Israel. The firm, which has backed major global companies including Facebook, Slack, Airbnb, Twitter, Stripe, Roblox, Coinbase and Lyft, had long expressed interest in the Israeli market. In a 2014 interview, co-founder Marc Andreessen even suggested that if the firm were to open a second office outside the U.S., Israel would be the top choice.
Hillel Fuld Photo: CourtesyNow, according to the IVC-Gornitzky-KPMG-Israel Innovation Authority investors report for 2024, Andreessen Horowitz has become one of the most active foreign investors in Israel. The firm, which manages $45 billion in assets, invested in seven new Israeli startups in 2024.
Only two venture capital firms—NFX and IBEX—were more active in the Israeli market over the past year.
The increasing involvement of Andreessen Horowitz further cements Israel’s position as a global innovation hub. While investors typically seek stability, Israel’s ability to attract top-tier capital despite geopolitical challenges speaks to the strength of its tech ecosystem. The firm’s deepening engagement signals strong confidence in Israel’s continued growth as a global leader in technology and innovation.