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." (Reporting by Steven Scheer; editing by Miral Fahmy)