PwC: Israel's Tech Sector Sees Annual Deal and IPO Funding Surge to $59 Billion

Deep News12-15 21:20

PwC Israel reported on Monday that despite the ongoing two-year conflict between Israel and Hamas, market enthusiasm for Israeli tech innovation remains strong. Annual acquisition and initial public offering (IPO) deal volumes have surged significantly, highlighted by Alphabet's $32 billion acquisition of Israeli cybersecurity firm Wiz.

The consulting firm noted in a report that the total annual deal value in Israel's tech sector skyrocketed by 340% from $13.4 billion in 2024 to nearly $59 billion. Excluding the Wiz mega-deal, the remaining transactions still doubled to $32 billion.

In 2025, Israeli tech companies completed seven IPOs, raising a combined $14.6 billion—a stark contrast to the $781 million raised across six IPOs in 2024. This data underscores robust investor demand for Israeli tech firms despite the prolonged conflict.

PwC observed a decline in mid-sized deals ($100–500 million) but growth in both small and mega-deals. The year saw six acquisitions exceeding $1 billion, including fintech firms Next Insurance ($2.6 billion) and Melio ($2.5 billion). Navan and eToro also went public on Nasdaq, achieving valuations of $6.2 billion and $4.4 billion respectively.

Yaron Weissenbruch, PwC Israel Partner and Head of Audit, noted that while more tech entrepreneurs and executives are relocating operations abroad, many companies still rely on "Israel's unique domestic talent pool."

He stated: "The Israeli market has demonstrated remarkable adaptability and problem-solving capabilities historically, with immense value-creation potential."

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