The H1/2025 IVC – GNY – KPMG Investors Report examines the trends and activities of investors in the Israeli tech ecosystem. The report analyzes fundraising and investment activity by Israeli VCs, the availability of capital for local tech ventures (Dry Powder), foreign VC funds, Israeli and foreign corporate VC funds, and Israeli institutional investors.
The Investors Report analyses 826 investments by VCs, 230 Capital raising rounds with VC participation, 72 Corporate VC funds invested in Israeli tech companies in the first half of 2025, and 375 investments by Israeli institutional investors (2020-H1/2025).
Israeli VC Funds Capital Raising by Vintage Year
Twelve new Israeli VC funds raised capital in H1 2025, nine of which announced only a first closing. Management companies launched in 2024-H1/2025 formed nine of these funds. Two additional funds completed capital raising in early Q3/2025. While $260 million, which Israeli VC funds raised in H1/2025, was declared, IVC estimates that the total capital raised reached $300–$350 million.
Israeli Venture Capital Allocations
Fundraising in H1/2025 remained modest. IVC estimates $208 million available for allocation (net of fees and costs), based on both actual closings and stated fundraising targets.
Yuval Horn, GNY’s Chair of the technology and life sciences practice: “The IVC–GNY–KPMG Report presents the state of Israel’s high-tech industry during a challenging period of war and economic instability. The report indicates a decline in first-time investments and new capital raising, with only 12 new venture capital funds established during the first half of 2025. Foreign investors have reduced their activity in first-time investments, while Israeli investors have maintained a relatively steady presence”.
Horn points: “Despite the challenges, several reasons for optimism exist: generative AI, fintech, cybersecurity, and defense technologies continue to attract significant interest and investment. The Israel Innovation Authority has launched new initiatives, such as the ‘Startup Fund’ and ‘Yozma 2.0,’ to increase market liquidity. We are also seeing growing interest from clients in establishing funds and joining as limited partners. Finally, Israeli venture capital funds still hold around $11 billion in capital available for investment.”
