Israeli privately-held technology companies (startups) raised $3.6 billion in the third quarter of 2026, according to LeumiTech and IVC’s Israeli Tech Review, up 53% from the corresponding quarter of 2025. Israeli companies have raised $11 billion since the start of 2026, up 50% from the corresponding period last year. The funds in the third quarter were raised in 91 financing rounds.
IVC-LeumiTech found that cybersecurity continues to lead in terms of fund raising while enterprise software investment is growing and defense-tech investment is moderating. Cybersecurity has raised about $4.3 billion year-to-date, accounting for 38% of all funding, including more than $1.7 billion in the third quarter 2026. Investment in enterprise software has accounted for nearly 30% of all funding in 2026, for the first time since 2020. Funding for defense-tech, space and quantum companies slowed to about $170 million in the third quarter 2026, compared with roughly $400 million per quarter in the first half of 2026.
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IVC-LeumiTech reports that foreign investors remain central. Foreign funds account for 66% of all active funds in Israel and have carried out more than 70% of investments.
The report notes that growth rounds have jumped, while early and late stages investments are lagging. Mid-stage companies raised about $1.8 billion in the thirds quarter of 2026, about 55% of total funding. Early-stage companies raised about $1 billion in the third quarter, close to their quarterly average since the beginning of 2025. Late-stage companies raised the smallest share of funding in the third quarter (23%), about $840 million.
LeumiTech CEO Maya Eisen Zafrir said: “The growth trend we are seeing in Israeli high tech remains healthy, with an increase of more than 50% in funding since the beginning of the year, compared to the same period in 2025. This quarter’s figures remind us that growth is uneven: deal numbers remain relatively low, and a substantial share of capital is concentrated in a small number of companies, stages and sectors. Although this concentration also characterizes the global industry, it poses a challenge for Israeli companies. The real test for the local ecosystem is not only how much capital enters the market, but also whether it can provide capital, opportunities and support to the next generation of entrepreneurs and startups that will become the economy’s next major companies and future growth engines.”
IVC CEO Guy Holtzman added, “The third quarter was particularly challenging this year, with summer vacation, holidays, and uncertainty in international capital markets. Even so, we continue to see growth in the amount of capital raised by the Israeli high-tech sector, an increase in the number of new companies, a steady presence of foreign investors, and the emergence of new industry sectors. Together, these developments offer the industry an opportunity to return to sustained growth after years of uncertainty and volatility.”
Published by Globes, Israel business news – en.globes.co.il – on September 24, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
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