Despite ongoing conflict and geopolitical uncertainties, Israel’s tech sector has defied the odds in 2024, achieving a remarkable 78% surge in exit value compared to 2023. According to PwC Israel’s latest report, the combined value of mergers and acquisitions (M&A) and initial public offerings (IPOs) reached $13.4 billion, up from $7.5 billion in 2023.
This growth was driven by 53 deals, a modest increase from 45 in the previous year, with an average deal size jumping 51% to $252 million. Cybersecurity and artificial intelligence (AI) startups played a pivotal role, with middle-tier deals ranging from $100 million to $500 million dominating the landscape.
Amid the October 2023 war and mounting challenges, Israeli tech companies exhibited resilience. Many continued operations under extraordinary circumstances, including active military reserve duties for executives and staff, while dealing with global fundraising hurdles.
Two billion-dollar acquisitions—Nvidia’s purchase of Run:ai for $700 million and Deci for $300 million—and Salesforce’s $1.9 billion buyout of Own were standout transactions. US buyers dominated the market with 31 deals worth $8.9 billion, followed by Israeli acquirers with 15 transactions totaling $3.2 billion. European buyers contributed $951 million to the M&A activity.
PwC emphasized the need for government initiatives focusing on social cohesion, civic equality, and talent development to sustain investor confidence. “Despite uncertainty, the sector’s entrepreneurial spirit remains robust,” noted Yaron Weizenbluth, a partner at PwC Israel.
The report highlights the diversification of tech sectors beyond cybersecurity, with growth in enterprise software, life sciences, and internet technologies. Domestic transactions accounted for 28% of all deals, underscoring local market strength.
While geopolitical instability poses ongoing risks, Israel’s tech sector continues to demonstrate remarkable adaptability and growth, setting the stage for further innovation in 2024 and beyond.