Israeli Life Sciences Investment Plunged 40 Percent in 2025, IATI Report Finds

A joint IATI-Israel Innovation Authority annual report released Sunday found that investment in Israeli life sciences companies fell from $2 billion in 2024 to $1.4 billion in 2025, below even 2023's $1.7 billion and less than half the $3 billion peaks of 2021-2022. Public market raises collapsed from $637 million in 2024 to just $116 million in 2025, with the decline concentrated in medical devices that had led the 2024 rebound. The report warned that Israel is missing the global biomed recovery, noting that 'such numbers generally indicate that many companies are raising small sums simply to survive until the end of the crisis.' Merger and acquisition activity held nearly steady at $1.3 billion. The findings raise fresh structural concerns for a sector once seen as a global standout, even as AI and defense exports keep the overall Israeli economy expanding.