Israeli Tech Sector Thrives Amidst Conflict, Attracts Nearly $1 Billion In Investments

A picture of the NASDAQ towers. A new international campaign touts business continuity and the resilience of Israel's tech sector. SNC.
A picture of the NASDAQ towers. A new international campaign touts business continuity and the resilience of Israel's tech sector. SNC.


By Abigail Klein Leichman

TEL AVIV-YAFO, Israel — Since the October 7 Hamas attacks that began a war, both investments and mergers and acquisitions reached nearly $1 billion, according to a summary of Israeli tech ecosystem activity published by Start-Up Nation Central, a non-profit that promotes Israeli innovation around the world.

“With 29 investment rounds totaling nearly $1 billion, the sector is holding strong,” the report notes, singling out Next Insurance’s $265 million funding round.

“The cybersecurity and health-tech sectors are maintaining substantial activity, emphasizing the resilience and growth potential of these verticals,” wrote the authors.

A picture of the NASDAQ towers. A new international campaign touts business continuity and the resilience of Israel’s tech sector. SNC.

Palo Alto Networks finalized two significant M&A deals, amounting to nearly $1 billion, for the acquisition of Tel Aviv-based companies Talon Cyber Security and Dig Security for $625 million and $350 million, respectively.

“In addition to consistent deal flow, Israeli tech is also delivering leading-edge products and development,” noted the report.

On November 21, NVIDIA announced that the first phase of the Israel-1 supercomputer was completed two months ahead of schedule. This machine is meant to lead AI operations and advance local R&D initiatives.

“Even with recent conflicts and global economic shifts, Israel’s tech sector has shown remarkable resilience and adaptability,” said Start-Up Nation Central CEO Avi Hasson.

“Israel’s technology sector is a cornerstone of the country’s economy and a dynamic force that has propelled the nation to the forefront of global innovation and will continue to do so,” he said.

Start-Up Nation Central has collaborated with tech investment group Viola, the G-CMO Forum for global marketing professionals, and branding and marketing agency Atreo to launch an international campaign emphasizing business continuity and the resilience of Israel’s tech sector.

A picture of the NASDAQ towers. A new international campaign touts business continuity and the resilience of Israel’s tech sector. SNC.

The campaign tagline is: “Israeli Tech Delivers #NoMatterWhat.”

“Israel entered the war with strong fiscal footing, a low GDP/debt rate, and over $200 billion in reserve. We expect, subject to the developments, that in the first half of 2024, economic activity will resume almost to the same level. We maintain full confidence in Israeli tech’s ability to deliver and innovate, even during these challenging times,” said Shlomo Dovrat, cofounder and general partner of Viola. 

Produced in association with ISRAEL21c