Israel's tech sector saw record-breaking merger and acquisition activity in 2025 even as private funding slowed, according to Startup Nation Central's Q3 report based on Finder data. Private capital raised in the third quarter totaled $2.4 billion, down 38% from Q2 when excluding Safe Superintelligence's $2 billion round. The number of deals shrank to 141, a 24% drop from the previous quarter and 38% year over year.Despite the slowdown,the median round size climbed to $10.5 million, a record