7 Joshua Kiernan, Latham & Watkins: “The Israeli tech industry remains, in some ways, sheltered from global macro environment fluctuations. Amazing tech will always be in demand. Provided there is a degree of market stability, we expect to see a significant increase in mergers and acquisitions within the Israeli high-tech sector in 2025. While the IPO market is experiencing a more gradual recovery, This we’re on the right trajectory, and 2026 is looking to be an excellent year for Israeli IPOs.” Lee Noyek, A&O Shearman: “Despite continued uncertainties, though, developments in technology, and the need for infrastructure to support them, and data to feed artificial intelligence models, will inevitably continue to spur M&A activity. Private equity firms have many assets that need to be sold, and much capital that needs to be deployed – so their ‘wait and see’ approach needs to end at some point. And, more generally, we have a strong M&A pipeline ahead of us once the markets settle.” Within Tech, Cyber M&A remains a bright spot. FinTech is always relevant within the Israeli ecosystem. That is both because of gravity making the stratospheric valuations of earlier on in the decade more realistic and also because the new US administration’s enthusiasm for crypto is driving value in that space. Global rearmament and Israel’s successful military campaign make Defense Tech an exciting new vertical, even if it is not yet at the level of other verticals in the Israeli Tech ecosystem. Israeli innovation in Life Sciences will continue to see demand from big pharma companies. That is without mention of AI, and AI driven growth, within every dimension of the Tech ecosystem. More broadly. Energy, Infrastructure and Renewables continue to offer opportunities and albeit there is uncertainty over how the new US administration will cut subsidies. The wider financial institutions sector in Israel remains relevant and we continue to see that sector being relevant both for international players in Israel and for Israeli institutions following their clients and seeking to diversify their portfolios.” Jeremy Lustman, DLA: “At the moment, I would say that the Defense Tech, AI, and life sciences sectors are providing the greatest opportunities for international investors and companies doing business with Israeli entities.” Jonathan Morris, BCLP: “Defense Tech and Cyber are likely to be very high up the list of sectors in which investors will be concentrating their focus when it comes to Israel.
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