Israeli Tech Funding Hits Two-Year High
Despite regional turmoil, Israel’s tech sector raised $775 million in venture funding in February, its best month since 2022. The surge suggests renewed investor confidence in the country's cybersecurity, AI, and enterprise software startups.
The February surge follows a period of significant recovery for Israel's tech industry. After a global economic slowdown contributed to a sharp drop in funding from nearly $16 billion in 2022 to around $7 billion in 2023, the sector has shown marked resilience. Total venture funding climbed to $9.58 billion in 2024 and is on a strong upward trajectory for the current year. Cybersecurity startups continue to be a major draw for investors. In the first two months of 2026, security analytics company Vega secured $120 million, and AI-native resilience platform Gambit Security raised $61 million. This continues a trend from 2024, where the cybersecurity sector accounted for a massive 36% of total funding despite representing only 7% of Israeli tech companies. The recent influx of capital is not limited to just one sector. The largest deal in February was a $175 million round for weather-tech satellite company Tomorrow.io. Other significant investments were seen in AI training company Guidde, which raised $50 million, and web intelligence firm Nimble, which brought in $47 million. This broader distribution of funding across various sectors marks a shift from 2025, where capital was more concentrated in fewer, larger "mega-rounds." There is also a renewed interest in earlier-stage companies, with seed-stage deals seeing a 97% increase from 2023 to 2025, indicating growing confidence in the next generation of startups.
