Israeli Tech Funding Hits 2-Year High

The February funding landscape was notably broad, channeling capital into sectors critical for the next wave of AI adoption. Key areas included cybersecurity, enterprise data infrastructure, satellite networks, and biotech. This wider distribution of investment across various startups marks a shift from 2025, when funding was more concentrated in fewer, larger "mega-rounds." Cybersecurity, in particular, continues to be a dominant force in the Israeli tech scene. The sector attracted $4.1 billion in 2025, with the median deal size hitting $20 million, double that of business software. This trend continued into the new year, with cybersecurity firms raising a significant portion of the early 2026 capital. The largest single investment in February went to Tomorrow.io, which secured $175 million to develop its AI-powered weather satellite network. Another major player was cybersecurity firm Vega, which raised $120 million in a Series B round, bringing its total funding to $185 million and valuing the company at approximately $800 million. This recent investment surge builds on a resilient 2024, where Israeli tech companies raised an estimated $12.2 billion, a 31% increase from 2023. The tech sector's GDP grew by 2.2% in 2024, even as the broader Israeli economy contracted. Several other companies secured significant funding, reflecting diverse investor interest. Gambit, a cybersecurity startup founded by veterans of the Unit 8200 intelligence unit, raised $56 million. Enterprise data startups also saw substantial investment, with companies like Guidde and Nimble collectively raising over $200 million. The increase in early-stage funding is another positive indicator for the ecosystem. Seed round investments saw a 97% rise from 2023 to 2025, suggesting a healthy pipeline of new innovation. This renewed focus on early and mid-stage companies points to growing investor confidence in the long-term potential of the Israeli tech sector.