The Israeli technology ecosystem continues to demonstrate recovery signs in mid-2026, with a clear focus on larger funding rounds in artificial intelligence, cybersecurity, and defense technologies. According to IVC-LeumiTech and Poalim Tech reports, Israeli startups raised between $7.6B and $8.6B in the first half of the year, a 45-52% increase compared to the same period last year.
Key Trends
Capital is concentrating in larger growth-stage rounds while the total number of deals declined. Foreign investors continue to lead most transactions. AI, cyber, and deep tech attract the majority of attention, alongside defense tech and robotics.
Notable July Funding Rounds
- Glow raised $180M at a $1.2B valuation, an AI-powered endpoint security platform founded by ex-Meta, Snowflake, and Claroty executives.
- Neo, founded by SentinelOne veterans, raised $100M in AI agent security.
- Oak raised $60M for an AI-native enterprise identity platform.
- Hemispheric raised $52M for a NeuroAI foundation model focused on human brain data.
- Aligned raised $60M Series B for AI agents in B2B sales workflows.
- Skapion raised $36M for drone swarm air-defense technology.
Additional rounds include Alta ($25M), Traysar ($25M for autonomous underground military systems), and Tangos AI ($20M for financial crime investigation tools).
Exits and M&A Activity
M&A activity continues with strategic buyers active. Recent deals include Instacart acquiring ARpalus (AI real-time shelf intelligence), Cribl acquiring CardinalOps (~$100M, cyber), and SailPoint acquiring Entro Security. This reflects growing demand for deep technologies such as robotics, sensors, and chips.
Bottom Line
The Israeli ecosystem conversation currently centers on concentrating larger capital in AI and deep-tech companies, alongside continued strategic exit activity. Accounts in the israeli_tech_vc profile showed limited activity in recent days, but broader market reports indicate positive momentum. Data is dynamic; follow Calcalistech and Globes for real-time updates.
