Mind the Tech NY
The bet on Israeli tech is paying off—and 2025 will prove it
Resilience, record investments, and a booming IPO pipeline signal a strong year ahead, according to Calcalist Publisher Yoel Esteron, speaking at Mind the Tech NY.
A year ago, on this stage at Mind the Tech 2024, I made this optimistic prediction: "We understand why some investors are still on the fence, and why our friends are worried. Israel's stock has suffered and will continue to suffer painful blows, but we advise you not to ‘short’ it. Because we will overcome. We shall overcome. Investing in Israel, especially now, is a smart investment that will bear wonderful fruits."
When I finished my opening remarks, an American investor asked me what I had drunk before my speech. He thought my optimism was delusional.
Well, it’s true that in March 2024, Israel was in a devastating war that threatened to severely impact the economy, including the tech sector. Still, I saw resilience and tenacity—and I remained optimistic. Even in those dark days, I knew that "we deliver—no matter what" was more than just a slogan.
2024 proved that the Israeli tech sector has been performing exceptionally well—beyond even my optimistic forecast. You’ve seen the numbers demonstrating a continued vote of confidence in us. Despite the war, total funds raised for the tech sector in 2024 exceeded $10 billion dollars. Exits—through sales and IPOs—amounted to approximately $13 billion dollars.
2025 has started on a strong note. In just the first month of the year, Israeli startups raised over $620 million dollars across 27 deals—a 30% increase compared to January 2024. The American appetite for investment looks stronger now. Analysts at PitchBook say investors are looking ahead with hopes of strong valuations and a potential IPO market rebound. With a robust IPO and acquisition pipeline in Israel, we are regaining our position as a top destination for investment—despite ongoing geopolitical uncertainty.
And speaking of geopolitics—while many Americans and Israelis may not be huge fans of Trump, it seems that his administration and Congress could provide Israel with a stronger strategic umbrella for the next four years.
So, I’m ready to make my prediction for 2025—and for the record, I had only coffee this morning: Americano, black, no sugar. The Israeli tech sector will do even better in 2025. I cannot ignore or underestimate the many challenges and threats facing Israel, but once again, I will say that investing in Israel is a wise decision—one that will bear wonderful fruits.
I am not alone in my confidence in Israeli tech. Shaun Maguire, a partner at Sequoia Capital—one of the world’s most significant venture capital funds—recently said: "I am incredibly optimistic about Israel's tech. The next ten years are going to be amazing." Shaun said it even before the 32-billion-dollar exit of Wiz, acquired by Google.
Meanwhile, Sam Altman was among the investors in Israeli AI startup Apex Security, in a funding round led by Sequoia and Index Ventures. His rival, Ilya Sutskever, chose to start his new multibillion-dollar company in both Silicon Valley and Israel. That, too, is a major vote of confidence.
And, of course, there’s cybersecurity. According to the SNC Annual Report, Israeli cyber continues to lead on the global stage, second only to the United States. The report highlights that Israel accounted for over 40% of U.S. private cybersecurity funding.
There are even more reasons for optimism, but I promised to keep mine within seven minutes. Let me say this: 2025 may set a new record for Israeli tech.
Yoel Esteron is Calcalist's publisher and co-founder of Shomrim.
First published: 10:04, 26.03.25
