Israeli tech sector raises $11 billion in first nine months of 2026

Israel’s technology sector has demonstrated significant growth, with privately held companies raising $11 billion in the first nine months of 2026. This represents a 50% increase compared to the same period in 2025. In the third quarter of 2026 alone, startups secured $3.6 billion across 91 financing rounds, a 53% year-over-year increase.

Cyber security remains the primary driver of this funding, accounting for approximately $4.3 billion, or 38% of all domestic tech capital, during the first three quarters. Enterprise software has also seen a resurgence, with its share of funding approaching 30%. Funding has been largely driven by mid-stage companies, which secured $1.8 billion in the third quarter.

To complement this private momentum, the Israeli government is actively supporting defense technology. The Ministry of Finance and the Ministry of Defense have selected two venture capital funds, Adir Capital and Sling Capital, to receive state guarantees. These funds are tasked with raising at least $150 million each to invest in military and dual-use strategic technologies, aiming to bolster national technological independence and battlefield superiority.