A busy day in the Israeli tech ecosystem: a medtech exit to a Japanese giant, a $60M raise by a young intelligence startup, ongoing layoffs at a well-known company, and a $50M cybersecurity round.

Olympus Acquires BioProtect for $270M

Japanese medical devices giant Olympus announced the acquisition of Israeli company BioProtect for $270M in cash. The deal is expected to close by the end of Q2 2026.

BioProtect developed a biodegradable balloon designed to protect healthy tissue during radiation treatment for prostate cancer. The company raised $81.5M since inception, with investors including Almeda, Tri Ventures, Peregrine, MVM Partners, and Consensus Bio-Group. It currently employs about 130 people, half of them in Israel.

The exit adds to a string of successful medtech acquisitions of Israeli companies over the past year, underscoring the sector's continued appeal to global strategic buyers.

Iris Labs: From TikTok to Intelligence

Iris Labs, a young Israeli intelligence startup founded in 2023 by former members of Israel's intelligence community, has raised $60M. The company develops a platform that extracts intelligence insights from video sources, particularly social media platforms like TikTok.

Iris Labs works with security agencies and intelligence organizations, helping them identify emerging threats through analysis of open-source video content. "The challenge is identifying a terrorist group growing on social networks," a source at the company says. The field is growing rapidly as global security agencies wake up to the intelligence potential of open-source video.

Lightricks Braces for More Cuts

Lightricks, the Israeli company known for its AI-powered editing tools, is preparing for another round of layoffs — its fourth in recent years. The company currently employs about 460 people. The scope of the expected cuts is not yet clear. The previous round took place in October 2025, when 85 employees were let go.

The move reflects a persistent challenge in the Israeli tech market, where companies continue to adjust their workforce to shifting market conditions and demand.

More from the Ecosystem

Frame Security, an Israeli cybersecurity startup, raised $50M. The company develops an AI-driven platform to defend enterprises against deepfake and social engineering attacks — a threat vector growing in prominence across the global security landscape.

The public conversation in Israeli tech reflects mixed sentiment. Alongside big exits and raises, ongoing layoffs and the shekel's strength against the dollar are creating uncertainty. As Calcalist reported, "the entire mindset of high-tech people has changed" — from long-term career planning to mass anxiety.

The Israel Innovation Authority, meanwhile, plans to invest approximately 100M NIS in establishing new technology incubators, signaling continued long-term confidence in the sector's growth trajectory.

The Bottom Line

Today's Israeli tech snapshot is a mixed one: big exits alongside layoffs, massive raises alongside macroeconomic anxiety. While the industry continues to generate value and attract global investors, the warning signs — currency volatility, market sentiment shifts, and ongoing efficiency measures — are as present as ever.