Startup baby boom on the way? Over 1,000 Israeli founders operating in stealth

A nearly 30% surge in the number of stealth-mode startup founders has been revealed in a special report by Dealigence, a firm that analyzes startups and technology companies. The report was compiled in collaboration with Google for Startups.

According to the findings, there are currently 1,054 entrepreneurs operating in stealth mode in Israel. This figure does not reflect the number of companies, most startups have more than one founder, but it does indicate a significant wave of new startup activity.

High-tech offices in Herzliya.

Using its proprietary technology, Dealigence analyzed over 5,000 professional profiles of individuals who identified themselves as entrepreneurs working in stealth-mode ventures in Israel over the past 12 months (compared to May 2023–April 2024). The data suggests a “startup baby boom” that may become public in 2025, according to Adam Lazovski, founder and CEO of Dealigence.

This wave of under-the-radar entrepreneurial activity could help alleviate concerns within Israel’s tech sector about a decline in startup formation amid geopolitical turmoil and prolonged reserve duty for many in the tech workforce. “The abundance of entrepreneurs quietly building companies signals an upcoming surge in early-stage funding rounds and new company announcements,” the report notes.

Among these stealth entrepreneurs: One-third previously held senior roles, indicating many are serial founders; 60% held technical or development positions in prior roles; 3.2% previously worked at tech giants like Microsoft, Amazon, Intel, and Meta; A significant portion of founders came from the IDF, with extended military service cited as the most common background.

Dealigence also compared stealth activity in Israel with other leading tech hubs. Despite having a population nearly seven times smaller than the UK, Israel has a nearly identical number of stealth founders. Per capita, Israel has 5.5 times more stealth entrepreneurs than the U.S., a stark indicator of the country’s continued entrepreneurial intensity.

Globally, the rise in stealth-mode startups is tied to several trends. Since the high-tech bubble burst in 2021 and the labor market shifted back in favor of employers, fewer startups feel the need to make early public noise to attract talent. The surge in generative AI has also raised concerns about idea theft and rapid product cloning, incentivizing secrecy to avoid being outpaced or preempted by larger tech firms.

In Israel, this global shift is compounded by local instability. Since the judicial overhaul and, more acutely, the outbreak of war, many entrepreneurs have deliberately stayed quiet, opting not to announce funding rounds or reveal company activities. This is out of sensitivity to the national mood, as well as concern that founders or employees could be called back to reserve duty at any time, disrupting company-building.

Even data providers have begun adapting to this new reality. Since late 2023, analysts behind Israel’s quarterly fundraising reports have estimated a near-100% gap between reported and actual fundraisings. At the end of Q1 2025, for example, only 96 funding rounds were publicly reported, totaling $2.13 billion. However, analysts estimate that nearly 200 rounds actually took place, raising closer to $3 billion.

This underreporting trend held throughout 2024: while publicly disclosed funding stood at around $10 billion, Startup Nation Central (SNC) estimates the true figure was closer to $12 billion.