Investment in Israeli defense startups breaks records

Reports for the first half of 2026 on Israeli high-tech indicate that for the first time in a long time, the leading positions in it began to be occupied not by cybersecurity and software, but by “deep technologies” – chips, robotics, medical equipment and, first of all, defense developments. “Deep technologies” accounted for six of the ten largest exits since the beginning of the year.

Defense technology startups raised $846 million in six months, almost the same as in all of 2025, according to an IVC report.

General reports indicate a good state of Israeli high-tech, at least externally – in six months, 43 exits worth $10 billion were closed, 19% more than a year ago (excluding Wiz). Startups raised $7.6 billion in funding in the first six months, up 52% ​​from last year.

However, the number of funding rounds in the second quarter fell to 86, the lowest since the end of 2023, when the war began after October 7. Money is concentrated in an increasingly narrow circle of companies, and it is young startups that are suffering the most from this: fundraising in the early stages decreased to $719 million in the quarter, while more mature players, on the contrary, raised a record $2.05 billion in late rounds since 2022.