Israeli Health-Tech Industry Shows Export Stability Amid Sharp Investment Decline in 2025
Translated & summarized from Channel 13 by baba
Israel's Health-Tech sector experienced a 40% drop in private investments in 2025, reaching the lowest in five years, yet maintained stability in exports and company activity. The industry saw a decline in medical device funding but growth in AI investments. IATI's CEO highlighted challenges from geopolitical tensions and currency issues but stressed the sector's resilience and global leadership potential.
The story in 6 lines · by baba
- Private investments in Israeli Health-Tech fell 40% in 2025 to $1.6 billion, the lowest in five years.
- Average deal size dropped below $10 million, with medical device funding declining sharply.
- Biomedical investments remained stable, while AI-related health-tech investments grew significantly.
- Industry stability persists in active companies, exports, and mergers despite investment challenges.
- IATI urges enhancing Israel's investment appeal and security to sustain life sciences growth.
- Efforts continue to encourage startups to incorporate in Israel and expand international collaborations.
The Israeli Advanced Industries Association (IATI), the Innovation Authority, and PwC Israel released the 2025-2026 report on Israel's Health-Tech and Life Sciences sector, revealing a significant drop in private investments to the lowest level in five years. Despite a 40% decline in investments in 2025, totaling approximately $1.6 billion with over 90% from private sources, the industry remains stable in terms of active companies, exports, mergers and acquisitions, and international interest.
The report highlights a continued decrease in average deal size to under $10 million and a sharp fall in medical device investments, while biomedical investments remained stable. Notably, there was a significant increase in investments in artificial intelligence within health technologies, reflecting broader trends in the high-tech sector.
Karine Meir Rubinstein, CEO and President of IATI, emphasized the sector's resilience amid ongoing security challenges, geopolitical uncertainty, prolonged reserve duty, and global competition for capital. She noted the economic difficulties caused by the weakening dollar, which impacts Israeli companies that earn revenue in dollars but pay expenses in shekels, reducing profitability and investment capacity.
Rubinstein also pointed to encouraging trends such as accelerated AI integration in drug development and health technologies, positioning Israel as a global leader due to its scientific excellence, advanced healthcare system, technological entrepreneurship, and skilled workforce. She called for enhancing Israel's investment attractiveness, achieving security stability, expanding funding sources, and deepening international collaborations to sustain the life sciences sector as a key growth engine.
The association is actively working with government bodies to strengthen Israel's competitiveness and encourage startups to incorporate and operate domestically, addressing the concerning trend of startups registering abroad. IATI plans to continue promoting investment, R&D, and international partnerships, alongside hosting global events like Mini MIXiii in Miami and MIXiii in Jerusalem to connect Israeli industry with global markets and investors.
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