Israeli startups raise $1.6B in June as war with Iran fails to rattle investors

June 2025 was Israel’s strongest month for tech funding since 2022, suggesting that the 12-day conflict with Iran had little to no effect on investor sentiment in the key sector.

More than $1.6 billion was raised by Israeli startups across 18 deals in June, according to data from Startup Nation Central, an Israeli nonprofit organization.

The largest deals registered in June were cybersecurity firm Cyera ($540 million), network company Cato Networks ($359 million), ForSight Robotics ($125 million), data firm Coralogix ($115 million) and cloud company Carbyne ($100 million).

The data showed that Israeli startups raised $9.3 billion in the first half of 2025, a 54% increase over the first half of 2024 and the strongest performance since 2022, according to SNC.

Why it matters: Israel's high-tech sector, which accounts for around 20% of the country's gross domestic product, seemed largely unscathed by the country's war against its biggest regional foe, Iran. Nearly 1,000 people were killed in total (more than 900 Iranians and 28 Israelis, per official figures) in the conflict, which was estimated to cost Israel around $6 billion, according to its central bank governor, Amir Yaron. 

The war erupted on June 13, when Israel launched a series of strikes targeting Iranian military, infrastructure and nuclear facilities,  — actions Prime Minister Benjamin Netanyahu framed as a necessary step to stop Tehran from acquiring a bomb. Iran swiftly retaliated with missile attacks. The United States briefly joined the conflict, carrying out airstrikes on three Iranian nuclear sites on June 22.

Amid the conflict, Israeli airspace was closed, forcing hundreds of flights to be diverted or canceled.

Israeli stocks soared to record highs after US President Donald Trump announced a ceasefire between Israel and Iran on June 23. The rally signaled that investors were betting that Israel would emerge from the conflict more secure and Iran's nuclear program had been damaged. As of Tuesday, Tel Aviv’s TA-125 has risen 11.8% since June 12, before the war started.

Know more: In a report released late Monday, a UN expert said that “lucrative” business deals helped sustain Israel’s campaign in Gaza.

Naming over 60 companies in the report, including arms manufacturers and technology firms, Italian human rights lawyer Francesca Albanese, UN special rapporteur on the occupied Palestinian territories, wrote, "While life in Gaza is being obliterated and the West Bank is under escalating assault, this report shows why Israel's genocide continues: because it is lucrative for many.”

In the 27-page document, Albanese accused companies of being "financially bound to Israel's apartheid and militarism."

Israel’s mission in Geneva said the report was “legally groundless” and “defamatory."