U.S. and Israeli Startups Exceed $100 Billion in H1 2025 Exits

U.S. and Israeli startups have collectively achieved over $100 billion in exits during the first half of 2025 through a combination of Initial Public Offerings (IPOs) and Mergers & Acquisitions (M&A). This significant milestone signals a robust period for venture capital-backed companies, with more liquidity events anticipated. As venture capitalist Trace Cohen stated in a recent social media post, "Over $100 billion in exits from U.S. and Israeli startups so far in 2025 via IPOs and M&A with more on the way."

The Israeli tech ecosystem has been a major contributor to this surge. According to a mid-year analysis by Startup Nation Central, private capital investment in Israeli startups reached $9.3 billion in H1 2025, marking the strongest half-year showing since 2021. M&A activity in Israel totaled $39.2 billion, significantly boosted by Google's $32 billion acquisition of Wiz, while IPOs added $1.6 billion, headlined by eToro's Nasdaq debut.

While comprehensive U.S. startup exit figures for H1 2025 are still emerging, broader market trends indicate increasing M&A activity. Global M&A deal volume reached $2.14 trillion in the first half of 2025, a 26% year-on-year increase, with North America recording $1.04 trillion in deals. Silicon Valley Bank's H1 2025 report suggests the IPO window may tentatively open for a select group of profitable companies, signaling a potential end to a three-year exit drought for some U.S. tech firms.

Key sectors driving this momentum include artificial intelligence (AI), fintech, and healthcare. The Silicon Valley Bank report highlights AI as a dominant force, noting that 48% of venture investment in 2024 went to AI-powered companies, a trend expected to continue. In Israel, fintech and health tech also saw substantial investment, with health tech recording the most deals.

This period also illustrates venture capital's strong performance relative to private equity in generating liquidity. As Trace Cohen observed, "VC is clearly outpacing private equity in liquidity this cycle." Data from 2024 indicated a significant contribution of VC-backed companies to global IPO proceeds, while M&A activity involving private equity firms saw a notable decline in the first half of that year.