Europeans Invest Billions in Israeli Tech Sector
Translated & summarized from Ice by baba
European investors and corporations are significantly increasing their involvement in Israel's high-tech sector, with $4.33 billion invested in the first half of 2026 and direct investments rising 20% in 2025. Acquisitions by European firms also surged to $5.155 billion in 2025, continuing this year. German capital leads corporate acquisitions, while Swiss investors focus on early-stage deals. The trend highlights Europe's growing role as a strategic financial partner for Israeli technology.
The story in 5 lines · by baba
- European investors poured $4.33 billion into Israeli tech in H1 2026, setting a new record.
- European direct investments in Israeli tech grew 20% to $1.404 billion in 2025.
- Acquisitions by European firms of Israeli companies reached $5.155 billion in 2025.
- German companies, led by Munich Re and SAP, are the top European acquirers.
- The Europe Days 2026 conference will bring over 30 European representatives to Tel Aviv.
European investors and corporations are significantly increasing their activity in Israel's high-tech sector, according to data from research firm IVC ahead of the Europe Days 2026 conference in Tel Aviv. In the first half of 2026, 105 European investors participated in 66 funding rounds totaling $4.33 billion, with the average round valuation reaching an unprecedented $65.6 million. European direct investments also saw a notable rise, increasing by approximately 20% in 2025 to $1.404 billion, up from $1.169 billion in 2024. This marks the first year of growth in this area since 2021.
The market for exits to European acquirers has also surged, from $361 million in 2020 to $5.155 billion in 2025. This trend continues into the current year, with nine additional acquisitions recorded between January and August. German capital is leading corporate acquisition activity, with 17 German investors involved in 14 deals this year. Munich Re became the largest European acquirer with a $575 million purchase of At-Bay in August, bringing its total Israeli acquisitions to $3.175 billion. SAP also acquired WalkMe for $1.5 billion.
Swiss investors remain active, with eight investors completing nine deals this year, focusing on earlier-stage investments with a median investment of $20 million. Additionally, Roche acquired 89bio for $2.4 billion. The Europe Days 2026 conference, scheduled for October 20 in Tel Aviv, will host over 30 representatives from European districts, cities, venture capital funds, and corporations, including executives from Airbus, OBI, Charité hospital, and Planet A and Planven funds.
Gili Tsagla, founder and CEO of Novawind and founder of the Europe Days conference, stated that the data indicates Europe's growing establishment as a strategic financial partner for Israeli high-tech. He noted that these figures reflect the integration of Israeli technologies driven by long-term industrial needs, particularly evident in acquisitions within cybersecurity, DefenseTech, digital health, enterprise software, and fintech.
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