Israeli Startups Secure $11 Billion in First Nine Months of 2026

Israeli private technology companies have attracted approximately $11 billion in investments during the first nine months of 2026, marking a 50% increase compared to the same period last year. In the third quarter alone, funding reached $3.6 billion, with 91 funding rounds reported, a 53% rise from the third quarter of 2025, according to a study by IVC and LeumiTech.

The cybersecurity sector continues to lead, having secured about $4.3 billion since the start of the year, representing 38% of the total funding. Over $1.7 billion of this amount was raised in the third quarter. Concurrently, investor interest in corporate software has significantly grown, accounting for nearly 30% of total funding in 2026, the highest share since 2020.

Conversely, funding for companies in defense technology, space, and quantum technology saw a decline in the third quarter, with approximately $170 million raised compared to an average of $400 million per quarter in the first half of the year.

Foreign investors remain the primary capital source for Israel's tech ecosystem, contributing over 70% of investments and comprising about 66% of active funds in the country. In the third quarter, the majority of capital, around $1.8 billion (55% of total funding), was directed towards mid-stage companies. Early-stage startups received about $1 billion, while late-stage companies secured approximately $840 million, or 23% of the quarterly total.

IVC and LeumiTech analysts noted that funding growth is uneven, with a substantial portion concentrated in a small number of companies. They emphasized the importance of access to capital and support for new generations of startups for the continued development of the technological ecosystem. Despite summer holidays and ongoing international market uncertainty, analysts observed an increase in raised funds, stable foreign investor participation, and the emergence of new technological areas.