Israel Ranks Fourth Globally in Quantum Technology Private Investment
Translated & summarized from Calcalist by baba
Israel has climbed to fourth place globally in private investment in quantum technology companies, raising nearly $500 million in 2025. The domestic quantum industry has grown significantly since 2019, with over 20 companies now active and employing around 1,000 people. This growth is supported by a national program, academic-industry collaboration, and private sector funding, with companies now considering public listings to fuel future expansion. The report advises focusing on relative strengths and international partnerships.
The story in 6 lines · by baba
- Israel ranks fourth globally in private investment for quantum technology companies.
- Israeli quantum firms raised nearly $500 million in private investment in 2025.
- The number of Israeli quantum companies has grown from 5 in 2019 to over 20 today.
- The Israeli quantum workforce has expanded to approximately 1,000 employees.
- Companies are considering Nasdaq listings to secure future funding for quantum breakthroughs.
- The report recommends focusing on relative advantages and international collaboration.
Despite negative global sentiment towards Israel following the Gaza war, the country has emerged as a significant player in quantum technologies. A new report by the Israel Innovation Authority, in collaboration with the World Economic Forum (WEF), reveals that Israel ranks fourth worldwide in private investment in quantum companies. In 2025, Israeli quantum firms raised nearly $500 million, accounting for approximately 9% of global private investment in the sector, or 15% excluding the United States. This marks an improvement from its fifth-place ranking in 2024.
The report, titled "The Israeli Quantum Ecosystem: How to Create Breakthrough Innovation with Focused Investment," highlights the rapid growth of the domestic quantum industry over the past six years. The number of active quantum companies in Israel has surged from just five in 2019 to over 20 today, with the workforce expanding from about 50 to 1,000 employees, positioning Israel high in quantum industry workforce concentration relative to its population size. Between 2019 and 2025, Israeli quantum companies raised a total of $1 billion.
Several Israeli companies, including Quantum Art and Classiq, are reportedly exploring Nasdaq listings via mergers with SPACs. This move is driven by the expectation that private capital will become insufficient for the anticipated quantum breakthroughs between 2027 and 2029, necessitating a transition to public companies for faster and larger fundraising.
Israel's quantum sector development is characterized by a structured national program launched in 2019, which established numerous labs, strengthened academic capabilities, and built national infrastructure. Public funding for the program has reached $413 million, contributed by the Council for Higher Education's Planning and Budgeting Committee, the Israel Innovation Authority, the Directorate of Defense Research and Development (MAFAT), and the Ministry of Science. However, like in other tech sectors, significant funding has come from the private sector rather than public sources.
The ecosystem benefits from strong ties between academia, particularly the Technion and the Weizmann Institute, and venture capital firms, accelerating the path from academic research to company formation and funding. Unlike larger countries with geographically concentrated quantum hubs, Israel's national-scale ecosystem fosters rapid collaboration, workforce mobility, and shared access to expensive infrastructure. The defense industry's operational needs are noted as a key driver for feedback and demand for new quantum technologies. The report recommends Israel focus on areas of relative advantage and pursue international collaborations rather than aiming for complete technological independence.