Smashing the previous record, Israeli defense start-ups pulled in $1b. in funding, mergers and acquisitions in 2025, Globes reported Tuesday.

“The funding in 2025 has been greater than all previous years combined, and the year is not over yet,” a senior defense official told the financial paper, with last year’s high of approximately $150 million seeming a pittance in comparison.

Israeli defense companies cannot survive solely on the local market, as the IDF is the only potential customer in the country.