Investment in Israel’s life sciences and health-tech industries grew by 25% in 2024, reaching $2.7 billion, according to a new report from the Israeli Advanced Technology Industries (IATI), the Israel Innovation Authority, and PwC Israel.
The report, released ahead of the MIXiii Health-Tech.IL conference in Jerusalem, highlights an increase in funding for rehabilitation and medical infrastructure following the Israel-Hamas War. It also notes a resurgence of Israeli companies raising capital on US stock exchanges, with four initial public offerings (IPOs) in 2024 compared to none in 2023.
“The Israeli innovation ecosystem has always been more than just an economic growth engine – it is a symbol of resilience, adaptability, and the ability to turn challenges into opportunities,” said Karin Mayer Rubinstein, CEO and president of IATI.
The report highlights Israeli companies developing medical solutions in response to the war, including advanced DNA identification for casualty recognition, smart prosthetics, and innovative medical devices for limb rehabilitation.
“The war emphasized the critical need for groundbreaking medical technologies, from battlefield evacuation to physical and mental rehabilitation,” Rubinstein said. “Israeli innovations are already helping with rapid injury detection, emergency treatment, and advanced medical support during evacuation and hospitalization.”
Government investment in health tech
Dror Bin, CEO of the Israel Innovation Authority, said the report underscores the need for systemic solutions to support the medical and rehabilitation sectors.
“The critical need for advanced rehabilitation infrastructure, innovative medical equipment, and skilled professionals is an immediate challenge – not a future concern,” Bin said.
The authority allocated NIS 500 million ($135 million) in 2024 toward digital health, rehabilitation, and medical technology investments, with a focus on bio-convergence infrastructure.
“This investment is designed to ensure that Israel not only maintains its place at the forefront of innovation but also drives forward breakthrough medical solutions,” he said.
Key findings
The report highlights a significant recovery in investment and fundraising activity in Israel’s life sciences sector in 2024:
A 37% increase in the number of new life sciences start-ups compared to 2023.
More than $2 billion in private investments in life sciences companies, with 58% coming from foreign investors – a 62% rise in Israeli investor participation.
Venture capital funds accounted for 84% of private investment, totaling $1.7 billion.
A 47% increase in public market fundraising, with Israeli life sciences companies raising $637 million on US stock exchanges.
Four IPOs of Israeli companies in the US come after a year of no initial public offerings in 2023.
A surge in secondary offerings on the Tel Aviv Stock Exchange (TASE) reached $19 million, though no new IPOs occurred for the third consecutive year.
The report examines the challenges, technological solutions, and investments needed for rehabilitation medicine in Israel. The findings are based on interviews with hospital directors, rehabilitation department heads, doctors, and medical professionals from Israel’s Health Corps.
Omer Gavish, partner and head of life sciences at PwC Israel, said battlefield medical care has evolved, improving survival rates while creating new challenges for rehabilitation facilities.
“The improvements in battlefield trauma care and rapid evacuation have led to an unprecedented survival rate, but they have also put immense strain on the healthcare system,” Gavish said. “To address this, Israel has rapidly expanded rehabilitation facilities and embraced cutting-edge technologies.”
Israeli life sciences maintain global competitiveness
IATI’s survey of 25 leading venture capital firms investing in life sciences found that, despite the war, most VCs have not significantly altered their investment strategies in Israeli companies. Only 15% of firms expanded into new sectors as a direct result of the conflict, while the rest remained focused on their existing investment areas.
“The Israeli life sciences sector continues to be a global hub for innovation,” Rubinstein said. “We will continue working to create an investment-friendly regulatory environment, foster global partnerships, and attract investments that reinforce Israel’s position as a leader in medical and technological innovation.”
The full report will be presented at the MIXiii Health-Tech.IL conference, which takes place from Tuesday to Wednesday in Jerusalem.