Israel’s technology sector has entered 2026 with serious momentum. Funding climbed to approximately US$4.23 billion in the second quarter, placing 2026 on track to become the ecosystem’s third-strongest year by average quarterly investment. Cybersecurity and enterprise software remain the country’s investment powerhouses, while defence, space, quantum technologies and semiconductors are quickly gaining ground. Major exits, continued foreign investment and approximately 575 multinational research and development centres also show that international confidence in Israeli innovation remains remarkably strong. Yet behind these headline figures, the way investors are deploying capital is changing, several once-prominent sectors are losing ground, and some unexpected areas are emerging as the ecosystem’s newest winners.
Explore the full IVC–LeumiTech Israeli Tech Review to see what is driving the shift.
Reach out to our trade officer Lachlan Corne for more info: Lachlan.Corne@israletrade.gov.il
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