Monday, June 29, was an unusually busy day in the Israeli tech ecosystem, featuring a significant policy announcement from the Israel Innovation Authority, the opening of the year's premier biomed conference in Jerusalem, and data wrapping up a record-breaking first half of 2026.

Innovation Authority Boosts Deep-Tech Support

The Israel Innovation Authority (IIA) announced today a major expansion of its flagship Startup Fund, designed to support early-stage deep-tech companies. The move aims to reduce risk for private investors in breakthrough technologies that require especially long development cycles.

New ceilings: Pre-seed maximum investment rises from NIS 1.5 million to NIS 2 million (~$670,000), and seed-stage from NIS 5 million to NIS 6 million (~$2 million). Companies in National Priority Area A or those led by entrepreneurs from under-represented populations will qualify for even higher caps, up to NIS 2.2 million at pre-seed and NIS 6.6 million at seed.

The new budget takes effect July 15. IIA CEO Dror Bin said the expansion is intended to help young companies secure sufficient capital in a challenging fundraising environment.

MIXiii Health-Tech.IL 2026 Kicks Off

At the same time, the MIXiii Health-Tech.IL 2026 conference opened today at the International Convention Center in Jerusalem, organized by IATI (Israel Advanced Technology Industries). Roughly 1,800 participants from 40 countries are attending what organizers describe as the largest biomed conference in the Middle East.

The conference, led by IATI CEO and President Karin Mayer Rubinstein, features over 60 investors and 30 venture capital funds from around the world. Key topics include emergency medicine (an area that has gained emphasis following recent wartime experience), tech-bio, healthcare venture building, home care and remote monitoring, and emerging technologies from Israeli academia.

A notable new addition this year is the IATI TTOs Pitch Session, bringing technology transfer organizations from leading research institutions, universities, and hospitals to present new life sciences and healthcare technologies to investors.

H1 2026: $8.6B in Fundraising

Against this backdrop of daily announcements, data published today shows Israeli startups raised approximately $8.6 billion in the first half of 2026, a 45% increase year-over-year. However, the number of rounds declined by roughly 35%, indicating capital concentration in more mature companies.

Notable rounds this month: AppsFlyer raised over $1 billion at a $2.7 billion valuation, Cyera raised $600 million at a $12 billion valuation, and DriveNets raised $410 million. Dream, the defense-cybersecurity company, closed a Series C of approximately $260 million at a $3 billion valuation.

M&A Wave Continues: Payoneer, D-Fend, Apono, Entro

The exit market also remained active in June. Nuvei is acquiring Payoneer in a massive $2.75 billion all-cash deal. Motorola Solutions is acquiring Israeli D-Fend Solutions for $1.5 billion, a major exit in the counter-drone defense space.

1Password acquired Israeli startup Apono for an estimated $250-300 million, marking the company's first Israeli acquisition and establishing a local development center. SailPoint acquired Entro Security for approximately $200 million. Priority acquired Israeli startup Obol (AI-driven cash flow forecasting) in a deal estimated in the tens of millions of shekels.

Bottom Line

The Israeli tech ecosystem continues to demonstrate remarkable resilience: government bodies are expanding support for early-stage companies, international conferences are drawing investors from around the world, and H1 data points to continued rapid growth, particularly in cybersecurity, AI, and digital infrastructure.