Israeli Tech Funding Surges

The February funding surge follows a broader rebound in 2025, when Israeli tech firms raised a total of $10.7 billion. This recovery came after a downturn during the war, which saw a significant portion of the tech workforce, estimated at 15-20%, called up for reserve duty. Cybersecurity firms were a major focus of investment in February, with companies like Vega securing $120 million in a Series B round. This continues a strong trend from 2025, a year in which cybersecurity and AI-related companies accounted for 70% of the total capital raised. The investment landscape in early 2026 shows a shift from 2025's concentration on mega-rounds. February's capital was more broadly distributed across various sectors, including enterprise data infrastructure, satellite networks, and biotech, indicating a renewed interest in early and mid-stage companies. Key deals in February included weather-tech startup Tomorrow.io's $175 million round, which pushed its valuation over $1 billion. Other significant investments went to data infrastructure companies Guidde and Nimble, which collectively raised over $200 million. The robust start to 2026, with over $1 billion raised in January, signals a return of investor confidence. This follows a record-breaking 2025 for exits, with mergers and acquisitions reaching $71 billion in the first three quarters alone, a nearly fivefold increase from 2024. Foreign investors, particularly from the US, continue to play a dominant role, accounting for 60% of total investors in 2025. This influx of international capital is a strong indicator of the global conviction in the resilience and innovative capacity of Israel's tech ecosystem. Looking ahead, the defense-tech sector is experiencing a boom, with the number of startups in this field nearly doubling between July 2024 and April 2025. Additionally, a new field of "traumatech," focusing on mental health and trauma treatment solutions, gained significant momentum in 2025 and is an emerging area of innovation.