Report: Israel Tech Sector Growing Despite War, Global Uncertainty 

Israel’s high-tech sector continues to grow despite regional conflict and 2023’s global economic downturn, according to a new report by the Startup Nation Central nonprofit organization. 

The report says that there was “modest growth” in the sector in the first quarter of 2024, when compared to the last quarter of the year before.  

This includes a 9-percent rise in private investment in the sector, for a total of $1.8 billion in Q1. Among the investments were six “mega-rounds” of fundraising, totaling $716 million, four of which centered on cybersecurity.  

In fact, the cybersecurity sector raised a total of $846 million in private funding – accounting for almost half of all investment in January to March of this year and three of the top six exits of that period.  

“Much of 2023 was marked by economic uncertainty globally, with rising interest rates, geopolitical tensions, and, in the Israel context, the horrific attack by Hamas and other Iranian proxies on October 7,” said Avi Eyal, co-founder and managing partner of Tel Aviv-based international VC firm Entrée Capital. 

“There is still a fair amount of pain that the industry will take in the coming quarters, yet we are positive there will be a steady rise in funding deals,” he said.