JERUSALEM, July 17 (Reuters) - Private funding in

Israeli startups bounced back in the first half of 2024, led by

investment in cyber security firms, Startup Nation Central said

in a report on Wednesday.

Funding rose 31% to $5.1 billion January-to-June compared to

the second half of 2023, with that number reaching as much as

$6.7 billion when accounting for unreported rounds and

undisclosed amounts, the nonprofit organisation said.

Funding in the second quarter was $3.3 billion, up from $1.8

billion in the first three months of 2024.

During the first half, there were 14 mega-rounds above $100

million that contributed $2.8 billion, representing 56% of total

private funding and "overshadowing weaker sectors and needed

funding for many early-stage and mid-stage companies," the

report said.

Cybersecurity contributed 52% of the funding, led by a $1

billion round by Wiz, which may be sold to Google for

$23 billion according to sources.

At the same time, cybersecurity M&A exits totalled $1.5

billion in 9 deals and accounting for 35% of exits in the first

half.

The report said that Israel's 31% rise in funding outpaced a

28% gain in the United States, while Europe and Asia experienced

declines of 6% and 18%, respectively.

Since raising nearly $30 billion in 2021, funding at Israeli

tech startups slowed in 2022 due to a global economic downturn,

and exacerbated in 2023 by a government plan to overhaul the

judicial system and later in the year by the Israel-Hamas war in

Gaza that is now in its 10th month.

Tech is a key growth driver for Israel, accounting for 20%

of economic output, 15% of jobs and more than 50% of exports.

"One might expect the 'Israeli factor' to have a stronger

impact on the Israeli tech activity, but the data suggests

otherwise," said Startup Nation Central CEO Avi Hasson.

"While some investors are hesitant, others are increasing

their investments, attracted by high-quality companies and

appealing valuations. 'Star' startups in popular sectors

continue to secure funding, while early-stage and early-growth

companies in less-trending areas face greater funding

challenges."