85% of the senior figures in venture capital funds in Israel’s biomed (medical devices, digital health, biotech and pharmaceuticals) sector see investments by companies and foreign funds increasing in 2025 compared with 2024. This according to the Israel Life Sciences and Health-Tech Industry Report for 2024-25 published by the Israel Advanced Technology Industries Association (IATI) and the Israel Innovation Authority, in collaboration with PwC Israel, and data from IVC, for the MIXiii International Life Science and Health-Tech week, currently taking place in Jerusalem. 60% of Israeli venture capital funds said that in 2024 they maintained a stable investment rate in life sciences, 20% increased it and 20% decreased it. 15% even entered new areas within the world of life sciences, according to the report.
The number of active companies in Israel rose slightly in 2024, with 70 new life sciences companies founded, compared with 53 in 2023. The number of new companies founded in the medical field reached a peak (205 new companies) during the Covid period when there were low interest rates, and has been declining since then, but the slight recovery last year shows that even in a period of difficulty and uncertainty as experienced in 2024, Israelis are not giving up on entrepreneurship.
92% of companies founded by Israeli entrepreneurs were registered in Israel
The report’s authors also say that there is no major trend in registering Israeli companies abroad. 92% of the companies founded by Israeli entrepreneurs were registered in Israel – only 7% in the US and 1% in other countries.
The companies that were founded are divided as follows: 28 companies in the digital health sector, 27 in the medical device sector, 11 in the biotech sector and only 4 in the pharmaceutical sector.
In the digital health sector, the report points to a trend in which the average fundraising round for a company in the sector has increased from $4 to $10 million, reflecting the maturity of the sector.
This report, like previous reports summarizing 2024, indicates an increase in investment in life sciences companies in Israel after a difficult 2023 – $2.1 billion, an increase of 15%. The increase is due to increased investment by Israeli entities (which rose from $538 million to $869 million, still low compared with $975 million in 2022), but foreign investment is also starting to trickle back, more slowly – from $2.1 billion in 2022, to $1.1 billion in 2023 and again to $1.2 billion in 2024.
In 2024, there were four IPOs of Israeli life sciences companies on Wall Street, compared with no IPOs at all in 2023.
Although the life sciences sector recovered less quickly than other sectors of the Israeli economy, in terms of the number of exits and IPOs it was the third largest, with exits and IPOs totaling $1.4 billion (mainly in the medical devices sector). In this sector, the numbers almost returned to their 2022 level.
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IATI president and CEO Karin Mayer Rubinstein said, “Israeli innovation has always been much more than an economic growth engine – it is a symbol of resilience, adaptability, and the ability to turn challenges into opportunities. The Israeli ecosystem represents strength and creativity – and during the war, it demonstrated this more than ever. The Israeli biomed, life sciences, and Health-Tech industries are a living testament to this. Amidst one of the most complex periods in the country’s history, these industries have not only endured but have also broken new ground, developing life-saving technologies that are transforming global healthcare.
PwC Israel Life Sciences Leader and partner Omer Gavish added, “2024 and the ‘Iron Swords’ war posed numerous challenges for Israel’s life sciences companies and healthcare system, many of which are unique to the country’s situation. Improvements in battlefield treatment, personal protection, and evacuation times have led to an unprecedented increase in survival rates among the wounded. However, this has also placed a heavy burden on the healthcare system and rehabilitation departments, which has been addressed through accelerated infrastructure development and technological advancements. A review of activity in the life sciences industry reveals that despite these challenges, we have witnessed an increase in investments in both private and public companies, significant merger transactions, and initial public offerings (IPOs) on U.S. stock exchanges. Based on the trends observed so far, we anticipate that 2025 will continue this trajectory, with further growth in mergers and public fundraising.”
Published by Globes, Israel business news – en.globes.co.il – on March 4, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
