As Israel faces one of the most complex national security environments in its history, with active threats on eight different fronts, its innovation ecosystem is showing the world what resilience truly looks like.
Even under fire, Israeli startups are building, deploying, and scaling. Offices remain open. Global teams remain connected. And products continue to ship to clients across the world. This isn’t business as usual — this is business adapted to the most extreme conditions imaginable.
Despite reserve duty call-ups and cross-border challenges, Israeli companies are operating with minimal disruption. Decentralized leadership structures, remote infrastructure, and global redundancies are enabling smooth delivery and sustained customer service. It’s not just survival, it’s execution under pressure.
In Q1 2025 alone, Israel attracted $3.2 billion in private tech funding, a 12% increase from the previous quarter — with 81% of the rounds involving global investors, the highest in two years.
Since October 2023, the ecosystem has seen over $20 billion in private tech investment and $50 billion in M&A activity, including Google’s acquisition of Wiz for $32 billion, a record-setting vote of confidence in Israeli tech.
Over 300 companies are currently active in defense, AI, aerospace, and cybersecurity, and many of them are testing and refining their products directly in live operational environments. The result: shorter product cycles, faster feedback, and more practical dual-use applications that meet real needs.
Enterprise organizations in Israel are not just watching from the sidelines, they are active participants in this momentum. At Cockpit Innovation, we’ve seen firsthand how large corporations are accelerating collaboration with startups.
For example, over the past year, EL AL has evaluated and tested technologies from more than 10 startups, a clear reflection of its growing commitment to open innovation. These engagements span key areas such as passenger experience, predictive maintenance, sustainability, and digital transformation.
These aren’t experiments, they’re real deployments, in real time, driven by urgency and trust.
As the world looks for agile, battlefield-tested innovation, Israeli defense startups are stepping up. Like cybersecurity before it, defense tech is emerging as Israel’s next major export sector, with global governments and corporations partnering to scale new technologies.
The defense tech sector is rapidly becoming a global export powerhouse. In 2024, defense exports hit a record $14.7 billion, up 13% from the previous year, with nearly half of that from missiles, rockets, and air defense systems. Over 50% of deals exceeded $100M, and 54% of exports went to Europe, reflecting growing global demand for battle-proven Israeli systems.
Led by giants like Rafael, IAI, and Elbit, alongside hundreds of specialized startups, Israel’s defense innovation is grounded in operational reality and accelerated by urgency. What starts as national resilience is quickly becoming a strategic global advantage.
From the Israel Innovation Authority to DDR&D and defense ministries, the public sector is actively investing in ecosystem stability, through grants, strategic partnerships, and rapid-response funding tools.
Israeli tech continues to build partnerships, deliver solutions, and make an impact, no matter what.
For global investors, partners, and corporates: the call to action is simple:
Stay engaged, amplify the message, and keep building with us.
This is not the first time Israeli innovation has been tested and proven its strength and resilience
Time and again, moments of national crisis have sparked new waves of ingenuity: bold startups, breakthrough technologies, and partnerships that stretch far beyond our borders.
Today is no different.
Because Israeli tech delivers. No matter what.
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