Israeli Tech Funding Hits 2-Year High

The impressive February fundraising was not concentrated in a few large "mega-rounds" but was instead spread across 23 disclosed deals. This indicates a broad allocation of capital into various companies rather than a reliance on a handful of major investments to boost the total. Cybersecurity and AI infrastructure were the standout sectors for investment in February. This aligns with a consistent trend, as Israeli cybersecurity firms attracted approximately one-third of all tech sector investments in 2024. Leading the pack in February's funding announcements was Tomorrow.io, which is developing a satellite constellation for weather forecasting. Other significant rounds went to cybersecurity firms Vega, which is valued at $800 million, and Gambit, a startup founded by veterans of Israel's Unit 8200 intelligence unit. The February 2026 performance continues a growth trajectory seen over the past two years. Funding in February 2025 reached over $550 million, which itself was a significant increase from the $293 million raised in February 2024. This sustained investment comes despite a challenging environment and highlights the tech sector's critical role in the Israeli economy. In 2024, while the broader economy contracted, the high-tech sector's GDP grew by 2.2%. The overall investment in Israeli tech companies in 2024 was estimated to be $12.2 billion, a 31% increase from 2023. This growth was significantly driven by the cybersecurity sector, which secured $3.8 billion in 2024. Multiple AI-focused startups also secured funding in February, including companies that help enterprises deploy AI agents and make their internal data more reliable for AI systems. This demonstrates investor confidence in Israel's growing role in the global artificial intelligence industry.