Initial figures for the IVC-LeumiTech report on Israeli tech for the primary half of 2026, which was revealed as we speak, present that Israeli privately-held expertise firms raised $7.6 billion within the first half of 2026, up 52% from the corresponding interval of 2025. In the second quarter, the tech firms raised $4.2 billion.
However, the rise within the quantity of capital raised doesn’t replicate an enlargement of the general fundraising market. The variety of fundraising rounds continued to say no, and within the second quarter amounted to solely 97 offers. According to the report, since 2023, the variety of fundraising rounds has averaged barely greater than 100 per quarter, in contrast with about 140 rounds per quarter in 2019-2020. This signifies that more cash is getting into Israeli tech, however it’s concentrated in a smaller variety of offers and in comparatively few firms, a development that has additionally characterised the worldwide enterprise capital market lately.
Cybersecurity retains primacy, defense-tech continues to develop
The distribution of investments between the fields additionally remained much like latest years. The cybersecurity area continued to be the primary attraction for buyers, with fundraising of $ 2.57 billion within the first half – about 34% of all capital raised. This maintains the sector’s place because the chief in capital elevating in Israel’s tech business, having already led the market in 2024 and 2025.
At the identical time, the defense-tech, house, and quantum computing sectors proceed to achieve momentum. Companies working in these fields collectively raised $846 million within the first half of the yr – an quantity that’s virtually equal to all of the fundraising recorded in these sectors throughout all of 2025.
The report additionally up to date the methodology for measuring AI firms: as a substitute of referring solely to GenAI firms, it now consists of firms by which AI is on the core of the product or expertise. According to the brand new definition, Core AI firms raised $1.6 billion within the first half, though IVC emphasizes that there’s overlap between this class and different sectors, primarily cybersecurity.
Large firms appeal to a lot of the cash
The knowledge additionally point out a rising hole between mature firms and younger startups. In the second quarter, firms within the progress and late phases raised about 83% of all capital raised, whereas firms within the seed and early phases raised solely $719 million, a decline in contrast with greater than $1 billion in every of the three previous quarters.
According to the report, one motive for that is the impression of the macroeconomic surroundings. Companies elevate capital in US {dollars}, however most of their bills, primarily salaries, are paid in shekels. The strengthening of the shekel, together with the rise in wages within the business, are eroding the buying energy of the funding and making it tough, particularly for younger firms, which have fewer sources of revenue and fewer monetary flexibility.
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On the opposite hand, mature firms are managing to manage higher with the adjustments and have even considerably elevated the amount of funding. At the identical time, the proportion of overseas buyers remained comparatively secure and stood at 69.1% of all enterprise capital funds and funding arms energetic in Israel within the first half, a determine indicating that regardless of the safety and financial challenges, Israel continues to keep up its place as one of many predominant funding locations within the expertise business.
Published by Globes, Israel enterprise news – en.globes.co.il – on July 2, 2026.
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