Preliminary figures for the IVC-LeumiTech report on Israeli tech for the primary half of 2026, which was printed right now, present that Israeli privately-held expertise corporations raised $7.6 billion within the first half of 2026, up 52% from the corresponding interval of 2025. Within the second quarter, the tech corporations raised $4.2 billion.
Nevertheless, the rise within the quantity of capital raised doesn’t mirror 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. Based on 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. Which means more cash is getting into Israeli tech, however it’s concentrated in a smaller variety of offers and in comparatively few corporations, a pattern that has additionally characterised the worldwide enterprise capital market in recent times.
Cybersecurity retains primacy, defense-tech continues to develop
The distribution of investments between the fields additionally remained just 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.
On the identical time, the defense-tech, area, and quantum computing sectors proceed to achieve momentum. Corporations working in these fields collectively raised $846 million within the first half of the 12 months – an quantity that’s nearly 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 corporations: as an alternative of referring solely to GenAI corporations, it now contains corporations through which AI is on the core of the product or expertise. Based on the brand new definition, Core AI corporations raised $1.6 billion within the first half, though IVC emphasizes that there’s overlap between this class and different sectors, primarily cybersecurity.
Massive corporations appeal to many of the cash
The information additionally point out a rising hole between mature corporations and younger startups. Within the second quarter, corporations within the development and late phases raised about 83% of all capital raised, whereas corporations 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.
Based on the report, one motive for that is the affect of the macroeconomic surroundings. Corporations increase 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 troublesome, particularly for younger corporations, which have fewer sources of earnings and fewer monetary flexibility.
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Then again, mature corporations are managing to manage higher with the adjustments and have even considerably elevated the quantity of funding. On the identical time, the proportion of overseas buyers remained comparatively steady and stood at 69.1% of all enterprise capital funds and funding arms lively 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 major funding locations within the expertise business.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on July 2, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
