Israeli high-tech is on a record-breaking streak. In the first half of 2026, startups raised approximately $8.6 billion — a 45% surge from roughly $6 billion in H1 2025. But beneath the headline number, a structural shift is underway: the number of deals dropped about 35%, signaling a move toward bigger checks for fewer companies.
According to a joint report by Poalim Tech and Dealigence, investment is concentrating in cybersecurity and artificial intelligence, with cyber funding more than doubling year-over-year. Israeli exports are also riding the wave: the Israel Innovation Authority's annual State of High-Tech report put 2025 exports at a record $85 billion — 58% of Israel's total exports.
This week's headlines
Several notable rounds landed in the first half of June:
Jedify — An Israeli AI startup building a "context graph" platform that connects fragmented enterprise data sources, raised $24 million in a Series A led by Norwest Venture Partners, with participation from Snowflake Ventures, S Capital VC, Cerca Partners, and Oceans Ventures. Founded by Assaf Henkin, Adi Elimelech, and Erik Shani, the company employs about 35 people and will use the funds for product development and expansion.
Pi — A US-Israeli cybersecurity startup founded by former Microsoft and Tesla security executives, raised $35 million in total funding — including a $25 million Series A led by Third Point Ventures. Its agentic AI security platform automates software protection from design to deployment. Backers include CrowdStrike CEO George Kurtz and the co-founders of Armis.
Aryon Security — A Tel Aviv cloud security startup raised $29 million in a Series A led by Brightmind Partners, with Datadog Ventures and Shlomo Kramer's Skinos Ventures participating. Aryon's Cloud Security Enforcement Platform prevents misconfigurations across cloud environments. The company emerged from stealth barely a year ago.
PointFive — Founded by the ex-IntSights team, raised $60 million in a Series B led by Accel, with Index Ventures and Salesforce Ventures. It focuses on AI and cloud cost optimization.
Rylo — Raised $85 million at a $500 million valuation, targeting $1 billion in revenue by 2028.
Innovation Authority: 2025 was a record year
The annual State of High-Tech report, published in late May, paints a picture of a sector in full stride:
- Record $85 billion in exports — 58% of Israel's total exports
- $84 billion in exits
- Nearly $15 billion raised by startups — a 30% year-over-year increase
- 8.2% real growth in high-tech output, accounting for roughly half of Israel's GDP growth
- Approximately 400,000 employees — 11.4% of the national workforce
- About 775 new startups founded
But the report also flags structural concerns: the first decline in a decade in the number of R&D workers based in Israel, alongside growing offshore activity by Israeli companies and rising relocation applications.
What's next
The second half of 2026 is expected to maintain the momentum, with major events including the Defense Tech Conference (June 17, Modi'in) and Money Tel Aviv (June 18). Israeli tech continues to command global attention — but the open question is whether the ecosystem can sustain this growth pace while managing talent constraints and the headwinds of a strengthening shekel.
