Israeli Tech Funding Hits 2-Year High
Israeli tech startups raised $775 million in February, marking the sector's best February since 2022. The strong fundraising performance comes despite the deepening regional conflict, highlighting investor confidence in the country's technology ecosystem.
The February funding surge builds on a broader recovery for Israeli tech, which saw a significant rebound in 2025. According to a report by IVC and LeumiTech, Israeli tech companies raised $11 billion in 2025, a 14% increase from 2024. This momentum was particularly strong in the last quarter of the year, which recorded the highest fundraising total in three years. The robust start to 2026, with a combined $1.85 billion raised in January and February, signals continued investor confidence. This two-month total is a significant increase from previous years. The trend shows investors are making fewer but larger and more focused investments, with the median deal size hitting a record $10 million in 2025. Driving the investment spike are the globally critical sectors of cybersecurity and Artificial Intelligence. In February, notable rounds included $56 million for cybersecurity firm Gambit Security, founded by veterans of the elite Unit 8200 intelligence corps, and $50 million for Guidde, a platform for deploying AI agents. This focus mirrors the trend seen throughout 2025, where cyber and AI-related companies accounted for the majority of capital raised. The largest deal in February was a $175 million investment in Tomorrow.io. The company is developing a satellite constellation to improve global weather forecasting, highlighting investment in deep tech and infrastructure beyond pure software. Other key investments focused on making enterprise data more accessible and reliable for AI systems.
