IVC - LeumiTech: Startup funding up 50% in 2026

Israeli privately-held tech companies raised $11 billion in the first nine months of 2026, a 50% increase from the same period in 2025. Q3 2026 saw $3.6 billion raised across 91 rounds, up 53% year-over-year. Cybersecurity led with $4.3 billion year-to-date, while enterprise software investment grew and defense-tech funding moderated.

Israeli privately-held technology companies raised $11 billion in the first nine months of 2026, a 50% increase from the corresponding period in 2025, according to the IVC-LeumiTech Israeli Tech Review. In the third quarter alone, startups raised $3.6 billion across 91 financing rounds, up 53% from Q3 2025. Cybersecurity continues to dominate, raising about $4.3 billion year-to-date, accounting for 38% of all funding, including over $1.7 billion in Q3. Enterprise software investment has grown to nearly 30% of all funding in 2026, the highest share since 2020. Defense-tech, space, and quantum funding slowed to about $170 million in Q3, down from roughly $400 million per quarter in the first half of the year. Foreign investors remain central, accounting for 66% of all active funds and carrying out over 70% of investments. Growth-stage companies raised about $1.8 billion in Q3, roughly 55% of total funding. Early-stage companies raised about $1 billion, close to their quarterly average since early 2025. Late-stage companies raised the smallest share at about $840 million (23%). LeumiTech CEO Maya Eisen Zafrir noted the growth trend is healthy but uneven, with capital concentrated in a small number of companies and sectors. IVC CEO Guy Holtzman highlighted challenges including summer vacation, holidays, and uncertainty in international capital markets, but pointed to sustained growth in capital raised and the emergence of new industry sectors.