Israeli startups raised $8.4 billion across 129 funding rounds in the first half of 2026, according to the Israel Innovation Authority, one of the strongest half-years in the country's tech history.
AI infrastructure led investment, while cybersecurity remained the busiest sector. Quantum, defense tech, and healthcare also attracted major funding. Global capital continued flowing into Israeli innovation despite regional challenges.
Why it matters
Deep-tech companies in robotics, semiconductors, medical devices, photonics, drones, and defense technologies drove many of Israel's largest exits in H1 2026. This marks a shift from the software-, cybersecurity-, and fintech-dominated exits of previous years, signaling growth at the intersection of advanced engineering, AI, hardware, and scientific research.
What the experts say
The Israel Innovation Authority (@ILInnovationAut) reports that deep-tech companies led the largest exits in the first half. The data reflects a broader trend of investment in infrastructure and advanced technologies.
The bottom line
The Israeli ecosystem continues to attract significant capital in the key growth areas of 2026, with emphasis on AI and deep tech.
