Israeli high-tech companies raised $3.3 billion in June 2026, one of the strongest months in recent years, according to reports compiled by Globes. That brings the first-half total to approximately $7.6 billion (per IVC-LeumiTech) to $8.4 billion (per CTech), marking a 45%–52% year-over-year increase.
The month was led by marketing analytics firm AppsFlyer, which raised $1.3 billion, the largest single round in June. Cybersecurity company Cyera completed a $600 million round, and networking solutions provider DriveNets raised $410 million. Other notable rounds included Dream Security (cybersecurity, $260M), Coralogix (observability, $200M), ZutaCore (waterless cooling, $100M), Rylo (AI for the deaf and hard of hearing, $85M), NewCore (workforce identity, $66M), and PointFive (AI efficiency, $60M).
Exits surge: cybersecurity and AI lead the way
The M&A market was equally active. The first half of 2026 saw more than 50 mergers and acquisitions involving Israeli startups, with total transaction volume estimated at $10.7 billion. Cybersecurity dominated, with notable deals including Cisco acquiring Astrix Security (~$400M), Palo Alto Networks acquiring Koi (~$400M), and CrowdStrike acquiring Seraphic Security (~$400M).
An emerging trend is "blue-and-white" M&A, Israeli companies acquiring other Israeli startups. Cyera bought Ryft ($100–130M) and Genie Security (~$50M), Check Point acquired Deepchecks, and Torq purchased Jit (~$70M). Artificial intelligence served as the common thread across most transactions, with global acquirers targeting capabilities in non-human identity security, browser security, and automation management.
Government steps in: NIS 1.6B package against the strong shekel
On Tuesday, the Finance Ministry unveiled a NIS 1.6 billion (~$537 million) aid package for the tech industry, prompted by the shekel's surge to a 33-year high against the dollar. The package follows consultations with startups, investors, and industry bodies.
The bulk of the package, approximately NIS 1 billion, will go to a fast-track grant program run by the Israel Innovation Authority, aimed at early-stage and growth-stage companies to extend their runway and sustain R&D operations in Israel. Additional allocations include NIS 175 million for advanced manufacturing equipment grants, NIS 25 million for Israel Export Institute programs, NIS 10 million for vocational training, and expanded tax incentives with an estimated fiscal cost of NIS 360 million.
Separately, the Israel Innovation Authority announced expansions to its Startup Fund for early-stage DeepTech companies, effective July 15, raising maximum grants to NIS 2 million at pre-seed (from NIS 1.5 million) and NIS 6 million at seed (from NIS 5 million).
The bottom line
Israel's high-tech sector is demonstrating remarkable resilience in the first half of 2026, with a surge in fundraising and exits alongside macroeconomic headwinds from the strengthening shekel. Cybersecurity and AI continue to serve as the primary growth engines, with unprecedented government support now supplementing private capital inflows. The ecosystem continues to attract global capital despite geopolitical uncertainty, but the combined effects of currency headwinds and elevated global interest rates will test this resilience in the months ahead.
