Investment in Israeli startups and tech firms spiked sharply toward the end of the year, fueled by major funding injections into cyber and AI startups, according to a report published Monday, marking the strongest quarterly results for Israeli tech since the first three months of 2022.

Preliminary data compiled by research center IVC and LeumiTech, a Bank Leumi arm that specializes in tech companies, showed that Israeli tech startups raised $3.43 billion in capital from investors from October through mid-December across 94 funding rounds.

The investment totals were 45 percent higher than those over the previous three months, when the war in Gaza was still in full swing, dampening investors’ appetite to sink money into Israel-based firms.

A US-brokered ceasefire entered into effect in Gaza on October 10, halting two years of war that began with a devastating Hamas-led attack on Israel two years earlier.

The volume of capital raised in the last quarter of the year was up 37 percent from the fourth quarter of 2024, a period that saw Israel at war with Hamas in Gaza and embroiled in intense fighting against the Hezbollah terror group in Lebanon and in heightened hostilities with Iran.

“The past year reflects the strength and continued growth of Israeli tech, despite a prolonged period of uncertainty and upheaval in the local and global arena,” said LeumiTech CEO Maya Eisen-Zafrir.

Funding difficulties hampering the local tech industry due to the fighting on multiple fronts started to recede in late 2024, with the sector’s recovery gaining steam this year.

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