Israeli Tech Firms Raise 3.6 Billion Dollars in Third Quarter of 2026

Israeli tech companies raised 3.6 billion dollars across 91 funding rounds in the third quarter of 2026, marking a 53 percent increase compared to the same period in 2025, according to preliminary data from the IVC and LeumiTech report released on Wednesday.

Cybersecurity Leads Funding

Cybersecurity maintained its dominance in the funding landscape, capturing 1.7 billion dollars in the third quarter—representing 47.2 percent of total funding—and reaching 4.3 billion dollars since the beginning of the year. Enterprise software investments stood at 1.1 billion dollars in the third quarter, accounting for 30 percent of all fundings and marking a record high since 2020. Meanwhile, funding for defense-tech, space, and quantum companies dropped to 170 million dollars, following a strong 800 million dollars raised in the first half of the year.

Since the beginning of 2026, Israeli companies have raised 11 billion dollars, reflecting a 50 percent increase year-over-year. Foreign venture capital funds accounted for 70 percent of total investments, with 110 foreign funds and 60 new Israeli funds executing their first investments in the country during the third quarter. Mid-stage companies captured 55 percent of the raised capital, totaling 1.8 billion dollars.

The growth trend we see in Israeli tech continues to be healthy. However, growth is not uniform: the number of deals is relatively low, and a significant portion of capital concentrates in a limited number of companies, stages, and sectors, said LeumiTech CEO Maya Eisen-Tzafrir.

IVC CEO and Chairman Guy Holtzman added that the third quarter was particularly challenging due to summer vacations, holidays, and uncertainty in global capital markets, yet it demonstrated the resilience and continued expansion of the local ecosystem.