European Investment in Israeli Tech Returns to Growth
European investment in Israeli tech returned to growth in 2025, alongside increased acquisition activity, according to research by IVC ahead of the EuropeDays 2026 conference in Tel Aviv.
Direct European investment reached $1.404 billion in 2025, up from $1.169 billion in 2024, an increase of approximately 20%. It was the first annual rise since 2021.
In the first half of 2026, 105 European investors participated in 66 funding rounds with a combined value of $4.33 billion. The average round size reached a record $65.6 million. These figures represent the total value of rounds involving European investors, including capital contributed by other participants.
Acquisitions also increased. The value of exits to European buyers rose from $361 million in 2020 to $5.155 billion in 2025. IVC recorded nine further acquisitions between January and August 2026.
Different approaches across European markets
German investors played a prominent role, with 17 investors participating in 14 transactions. According to Gili Cegla, founder of EuropeDays and CEO of Novawind, corporate and industrial investors are a significant part of Germany’s activity, often pursuing technologies that serve their long-term business needs.
Gili Cegla, founder and CEO of Novawind. Photo: Arthur Forer
Swiss investors showed a greater tendency to participate at earlier stages. Eight Swiss investors took part in nine transactions in the first half of 2026.
Cegla sees the findings as evidence of closer ties between European industry and Israeli technology companies. Areas of interest include cybersecurity, defense technology, digital health, enterprise software and fintech, with engagement extending to pilots and commercial partnerships.
EuropeDays to connect investors and companies
The research was prepared ahead of EuropeDays, scheduled for October 20 in Tel Aviv. The conference is expected to bring together more than 30 representatives from European cities, regions, corporations and venture capital funds to explore investment and business opportunities with Israeli technology companies.
The announced speaker lineup includes representatives from Airbus, Warburg Pincus, OBI, Charité, Planet A and Planven.
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