Israeli startups Orca AI, Empathy, and others raise $315 million in May funding spree

Israeli startups collectively raised over $950 million in May across 18 deals, reflecting a significant 30% decline from the $1.4 billion raised in the same month last year.

Among the top fundraisers, Orca AI secured $72.5 million and Empathy raised $72 million, contributing to a combined $315 million raised by several key startups including Ox Security, Kela, and PhaseV.

The largest individual funding rounds in May were led by AI21 Labs with a $300 million Series D and quantum computing firm Classiq with a $110 million Series C, underscoring continued investor interest in AI and quantum technologies despite the overall funding slowdown.

This funding environment highlights both the resilience and challenges faced by Israeli tech companies amid a global market contraction. The substantial investments in AI-driven startups like Orca AI and Empathy demonstrate confidence in innovative technologies.

“Over $950 million was raised by Israeli startups across 18 deals in May, a decline of more than 30% compared to the over $1.4 billion raised during the same month last year,” reflecting a cautious but ongoing appetite for tech investments.

The $315 million raised by Orca AI, Empathy, and others signals a strong vote of confidence in their growth potential and technological advancements, even as the broader market adjusts to new economic realities.

Israeli startups Orca AI, Empathy, and others raised $315 million in May, part of a $950 million total across 18 deals, marking a 30% decline from last year. Orca AI led with $72.5 million, followed by Empathy at $72 million, amid a challenging funding environment.