
Several major tech companies fund money to Israel, with some of the most notable investors being Intel, Microsoft, and IBM. Intel has invested heavily in Israeli startups, with a focus on cybersecurity and artificial intelligence.
Microsoft has a significant presence in Israel, with a research and development center in Herzliya. This center focuses on developing cutting-edge technologies such as AI and cloud computing.
One of the most successful Israeli startups to receive funding from these companies is Wix, a website creation platform that has received investments from Intel and Microsoft. Wix has used this funding to expand its operations and develop new products.
IBM has also invested in several Israeli startups, including a cybersecurity firm called Cyberark. Cyberark has developed a range of security solutions for businesses, including privileged access management and data protection.
European Financial Institutions
European financial institutions have invested a staggering 36.1 billion EUR in international arms producers that sell weapons to Israel.
These financial institutions have provided loans and underwritings to companies that have sold weapons to Israel, putting them at risk of facilitating severe violations of international humanitarian law.
French bank BNP Paribas is the largest finance provider to companies that have sold weapons to Israel, having provided 5.7 billion EUR in loans and underwritings since 2021.
Other large investors include banks Crédit Agricole, Deutsche Bank, Barclays, and UBS, as well as the Norwegian government pension fund GFPG and the insurance company Allianz.
Financial institutions have a clear responsibility to ensure that they do not invest in companies that contribute to human rights violations, according to international standards on business and human rights.
The Dutch appeals court referenced the risk of such violations as the basis for its ruling in February this year that the Netherlands needs to stop exporting F-35 fighter jet parts to Israel.
EU Funding Opportunities
The European Union has a significant presence in Israel, providing funding opportunities for various sectors.
The EU has allocated €150 million to support innovation and entrepreneurship in Israel, as part of the Horizon 2020 program.
Many Israeli startups have received EU funding, with a notable example being Wix, which received €1.5 million from the EU's Horizon 2020 program to develop its website-building platform.
The EU also provides funding for research and development in Israel, with a focus on areas such as cybersecurity and artificial intelligence.
Israel's strong startup ecosystem and innovative spirit make it an attractive destination for EU funding.
Israeli Venture Capital
Israeli venture capital firms like Pitango Venture Capital, Viola Ventures, and Aleph are leading the way in funding startups in Israel. These firms typically invest in Series A to Series C rounds, with funding ranging from $1 million to $100 million.
Angel investors in Israel, on the other hand, provide funding between $50,000 and $1 million for early-stage startups. Networks like iAngels, TechAviv Angels, and Club100+ are great resources for startups looking for angel investment.
Startups looking for investment in Israel can also leverage online platforms like AngelList, LinkedIn, and Crunchbase to connect with both Israeli and global investors.
Invest in Arms Companies

European financial institutions have invested billions in arms companies that sell weapons to Israel. This includes 36.1 billion EUR in loans and underwritings, and 26 billion EUR in shares and bonds.
French bank BNP Paribas is the largest finance provider to companies that have sold weapons to Israel, having provided 5.7 billion EUR in loans and underwritings since 2021.
The banks Crédit Agricole, Deutsche Bank, Barclays, and UBS, as well as the Norwegian government pension fund GFPG and the insurance company Allianz, are also major investors in these companies.
According to international standards on business and human rights, financial institutions have a clear responsibility to ensure that they do not invest in companies that contribute to human rights violations.
Financial institutions have a responsibility to ensure that their investments do not contribute to human rights violations, as stated by Gaëlle Dusepulchre, Deputy Director of FIDH’s Business, Human Rights & Environment Desk.
The six largest arms producers identified in the report - Boeing, General Dynamics, Leonardo, Lockheed Martin, RTX, and Rolls-Royce - have sold weapons or weapon systems to Israel since 2019.
SeedIL Ventures
SeedIL Ventures is a venture capital firm that was founded in 2014. They focus on investing in startups across various sectors, including B2B, Enterprise/IT/Cyber, Digital Health, Climate Tech, Agri/Food/Construction, and Tech, with a specific interest in Fintech.
Their portfolio is quite impressive, with notable investments in companies like BlueCircle, Dataloop, Cynomi, Wisor, Presenso, and BreezoMeter.
SeedIL Ventures supports startups from the pre-seed to seed stages, providing them with the necessary funding and resources to grow and succeed.
Here are some key facts about SeedIL Ventures:
- Year of Inception: 2014
- Stage: Pre Seed, Seed
- Focus: B2B, Enterprise/IT/Cyber, Digital Health, Climate Tech, Agri/Food/Construction, Tech, Fintech
- Notable Portfolio: BlueCircle, Dataloop, Cynomi, Wisor, Presenso, BreezoMeter
Alive Healthtech Fund
Alive HealthTech Fund is a notable player in the Israeli venture capital scene, founded in 2020. It focuses on investing in health and software companies.
One of its notable portfolio companies is Medisafe, a health-focused startup. Medisafe's innovative approach to healthcare has been recognized by the fund.
Alive HealthTech Fund supports companies at various stages, from seed to Series D. This broad range of investment stages allows the fund to cater to different types of startups.
The fund's focus on health and software & internet sectors is evident in its portfolio companies. Innovalve, Magenta Medical, and Cynerio are just a few examples of the innovative companies it has backed.
Here's a list of the fund's notable portfolio companies:
- Medisafe
- Innovalve
- Magenta Medical
- Cynerio
Bridges
Bridges Israel is a player in the Israeli venture capital scene, founded in 2018. It focuses on software and internet startups, and its notable portfolio includes XRHealth, Econcrete, N Drip, and Venn.
Bridges Israel supports startups at various stages, from seed to series D. This broad range of support is a valuable resource for early-stage companies looking to grow.
To connect with Bridges Israel, you can reach out to them directly.
Investors
Israeli venture capital firms are a key driver of innovation and growth in the country's thriving startup ecosystem. Angel investors in Israel typically provide funding between $50,000 and $1 million for early-stage startups.
Angel investors in Israel are part of a community located throughout the country, and they may act as individuals or as syndicates to fund projects of their preference. This means that startups can find a potential angel investor with aligned vision and interests through these networks.
Leading VC firms in Israel include Pitango Venture Capital, Viola Ventures, Aleph, OurCrowd, Vertex Ventures Israel, Glilot Capital Partners, and 10D. These firms invest in Series A to Series C rounds, with funding ranging from $1 million to $100 million, depending on the industry and scalability.
Startups looking for investment in Israel should leverage various resources, including startup incubators & accelerators and investor networking events & summits. This can include online platforms like AngelList, LinkedIn, and Crunchbase to connect with both Israeli and global investors.
The due diligence process for VCs and angel investors in Israel typically takes 6-12 weeks, depending on the startup’s funding stage and industry. This process involves rigorous due diligence, including market validation and business model scalability, technology assessment and intellectual property (IP) verification, financial audits, revenue projections, and burn rate analysis.
Some top angel investor networks in Israel include iAngels, TechAviv Angels, Club100+, and OurCrowd. These networks provide early-stage funding for startups through a community of angel investors who share aligned vision and interests.
Industries Attracting Most VC Investment
Israel is a hotbed for venture capital investment, and certain industries are attracting more attention than others. Cybersecurity is one of the most funded sectors by VCs and angel investors in Israel.
Artificial intelligence (AI) is another area that's seeing significant investment, with many startups working on innovative AI solutions. Fintech is also a popular sector, with companies developing new financial technologies.
SaaS, health tech, and biotech are also among the most funded sectors in Israel, with many startups working on cutting-edge solutions in these areas. Autonomous vehicles, deep tech, and agritech are also emerging as high-growth investment areas.
Blockchain, quantum computing, and climate tech are also gaining traction, with many investors taking notice of their potential for growth.
Investor Networks and Funds
Israel is home to a thriving venture capital and angel investment ecosystem, earning it the nickname "Startup Nation". One notable venture capital firm is Pitango Venture Capital, which invests in various sectors.
Some leading venture capital firms in Israel include Pitango Venture Capital, Viola Ventures, Aleph, OurCrowd, Vertex Ventures Israel, Glilot Capital Partners, and 10D.
The Alive Israel HealthTech Fund is a seed to Series D investor that focuses on health and software & internet. This fund has invested in notable companies like Medisafe, Innovalve, Magenta Medical, and Cynerio.
Angel investors in Israel can join networks like iAngels, TechAviv Angels, Club100+, and OurCrowd, which provide early-stage funding for startups.
Venture Capital and Investment
Israel has a thriving venture capital and angel investment ecosystem, earning it the nickname "Startup Nation". Leading VC firms include Pitango Venture Capital, Viola Ventures, Aleph, OurCrowd, Vertex Ventures Israel, Glilot Capital Partners, and 10D.
These firms, along with networks like iAngels, TechAviv Angels, Club100+, and OurCrowd, provide early-stage funding for startups. Angel investors in Israel often act as individuals or syndicates to fund projects that align with their vision and interests.
The most funded sectors by VCs and angel investors in Israel include cybersecurity, artificial intelligence (AI), fintech, SaaS, health tech, biotech, autonomous vehicles, deep tech, and agritech. These sectors have seen significant growth and investment in recent years.
Blockchain, quantum computing, and climate tech are also emerging as high-growth investment areas in Israel.
Sources
- https://www.fidh.org/en/issues/business-human-rights-environment/business-and-human-rights/european-financial-institutions-companies-weapons-israel
- https://www.thenation.com/article/economy/esg-funds-gaza-weapons-manufacturers/
- https://www.jewishfederations.org/fedworld/federations-create-israel-emergency-loan-fund-to-aid-small-businesses-462326
- https://www.eccpalestine.org/eu-funding-to-israeli-military-companies-and-institutions-through-horizon2020/
- https://www.xyzlab.com/post/vc-funds-and-angel-investors-in-israel
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