Reports covering the first half of 2026 show significant shifts in Israel's high-tech sector. While in previous years the bulk of investment flowed into cybersecurity and software, investor attention is increasingly turning toward "deep tech" — technologies rooted in advanced scientific and engineering disciplines.
This category includes semiconductors, robotics, medical devices, and — notably — military technologies developed for the defence industry. According to the report, startups operating in this space alone attracted $846 million in investment since the beginning of the year. That figure is roughly equal to the total recorded for all of 2025, underscoring the rapid growth of interest in the sector.
Overall, Israel's hi-tech sector closed the first six months of the year on a strong note. During this period, 43 technology companies completed successful sales or exits. Even excluding the figures for Wiz, the combined value of these transactions reached $10 billion — a 19 percent increase compared to the same period last year. In addition, Israeli startups collectively raised $7.6 billion in investment, representing a 52 percent rise compared to the first half of 2025, demonstrating that the country's innovation ecosystem continues to attract international investors.
At the same time, the report highlights certain emerging risks within the sector. In the second quarter of 2026, the number of new investment rounds fell to 86 — the lowest figure recorded since the end of 2023.
Analysts note that the model of capital distribution in the market is shifting. Investment is increasingly flowing toward established, fast-growing technology companies, while early-stage startups are finding it progressively harder to secure funding.
According to the data, early-stage startups raised just $719 million in the first half of the year. By contrast, more mature companies achieved a record result — attracting $2.05 billion in capital. Experts believe that while this trend reflects continued quality growth in Israel's technology sector, financing the early-stage ecosystem that brings innovative ideas to market will remain one of the key challenges ahead.