The Israel Innovation Authority released its H1 2026 ecosystem report this week, showing continued strength in the Israeli startup scene. Israeli startups raised a total of $8.4 billion across 129 funding rounds, one of the strongest half-years on record.

AI Driving Investments

Artificial intelligence remains the primary growth engine. One in three startups founded in Israel over the past five years is AI-native. These companies demonstrate average annual revenue growth of 185%, are 5.9 times more likely to reach $1 million in revenue, and 86% hold proprietary AI models.

Cybersecurity and Deep Tech Stand Out

Cybersecurity led in the number of funding rounds. Meanwhile, deep-tech companies, robotics, semiconductors, medical devices, photonics, drones, and defense, accounted for many of the largest exits in H1 2026. This marks a shift away from the traditional dominance of software, cyber, and fintech.

Global Footprint

Israeli technology is also embedded in major international infrastructure. Some Israeli solutions power elements of the 2026 FIFA World Cup, including AI highlights and real-time data analytics.

Bottom Line

The numbers confirm that the Israeli ecosystem maintains strong momentum into the second half of the decade, with increasing emphasis on artificial intelligence and deep technologies. Investors continue to see value in companies that deliver proprietary technology and rapid growth.