Israel raised nearly $15 billion in venture funding last year and recorded roughly $84 billion in exits [1]. That is a remarkable return for a country of ten million people. The 34 startups in Israel below are the companies turning that capital into revenue and category leadership in 2026.
Per the 2026 High-Tech Status Report published by the Israel Innovation Authority, technology firms in Israel are estimated to have collected nearly $14.6 billion in 2025, which is a 30% growth compared to 2024. The total export of high-tech goods is approximately $85 billion, which constitutes 58% of the total export from Israel.
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By the end of this article, you will find out which Israeli firms hold the highest valuation at present, where the capital is flowing to, which programs of non-dilutive funding are currently available for founders, and how to differentiate between a real scaleup and a fake one.
Key Takeaways (TL;DR)
- Capital is concentrating. $14.6B raised in 2025, ~$8.6B in H1 2026 — but rounds under $10M hit a decade low as mega-rounds drive growth.
- Cybersecurity leads. Cybersecurity, enterprise software, and fintech took 60%+ of 2025 funding; cybersecurity investment more than doubled year over year.
- Exits are resetting valuations. Google’s $32B Wiz deal, plus BioCatch and Hailo acquisitions, raise the bar for what counts as a successful outcome.
- Non-dilutive capital is underused. Tnufa, the Fast-Track Runway Program, and the Angels Law credit fund offer founders no equity cost.
- Talent is leaving Israel. Only 62% of employees at private Israeli companies still work there, down from 69% in 2019 — a real diligence flag.

Quick Overview: The Israeli Startup Ecosystem in 2026
The startup scene in Israel entered 2026 with more money and fewer deals. Rounds under $10 million fell to a decade low, while mega-rounds by growth-stage companies drove most of the increase.
Three sectors dominate. Cybersecurity, enterprise software, and fintech took more than 60% of capital raised in 2025, and 35% went to core AI companies. That is why cybersecurity startups in Israel and AI startups in Israel fill most of this list. Israel now counts more than 40 Israeli unicorns, and the newest AI startups in Israel came from those same three categories.
Momentum carried over into this year. Israeli startups raised an estimated $8.6 billion in the first six months of the year, a 45% increase over the same period last year, according to a report by Poalim Tech and Dealigence. Capital for cybersecurity investments more than doubled.
Other categories are growing quickly. The Israeli Innovation Authority says that new companies in the fields of space, quantum technologies, AI infrastructure, and defense technology that started in 2023 are now gaining traction and attracting large investments.
There’s one structural caveat: only 62% of employees at private Israeli firms are situated in Israel, compared to 69% in 2019. Most of the growth of Israeli firms is happening overseas, primarily in the USA
Tel Aviv continues to be the focal point. According to the 2026 Global Startup Ecosystem Report, it is the fourth-best ecosystem in the world, and tech companies in it take most of the venture capital in Israel. The cities of Jerusalem, Netanya, Ra’anana, and Caesarea also find their places in the updated list of Israeli startups.
Methodology: How We Evaluated and Ranked These Startups
We applied five equally weighted criteria to identify the best startups in Israel rather than run a popularity contest.
- Capital validation. Total funding and latest post-money valuation, from primary announcements.
- Commercial traction. Disclosed ARR, backlog, customer counts, or named enterprise logos. Revenue beats the roadmap.
- Technical defensibility. Patents, novel architecture, clearances, or benchmarks rivals cannot copy quickly.
- Momentum since 2025. A round, launch, acquisition, or clearance in the last 18 months.
- Category position. Whether the company leads, contends in, or created its segment.
Editorial note from our team: we screened 60 candidates and cut 26. Cross-checking Tracxn, PitchBook, and CB Insights against company press releases produced conflicting totals in roughly a third of cases, usually because secondary share sales were counted as primary capital.
Transparency on status changes. Four of the top Israeli startups here changed status recently, and we flag each in its profile: Wiz closed into Google Cloud in March 2026, Hailo signed an acquisition agreement with Microchip in July 2026, BioCatch agreed to a Visa sale in August 2026, and StoreDot’s SPAC merger collapsed in February 2026.
Top Cybersecurity & Cloud Defense Startups in Israel
Cybersecurity took 33.7% of all Israeli capital in the first half of 2026. These eleven cybersecurity startups in Israel show why, and six are Israeli unicorns.
1. Wiz

Wiz built the agentless platform that scans entire cloud estates for risk and became the fastest-growing software company on record before Google bought it.
- Industry: Cloud & AI Security
- Location: Tel Aviv / New York
- Money Raised: Acquired by Google for $32 billion in cash; closed 11 March 2026 [2]
- Why watch in 2026: Wiz crossed $1 billion ARR in 2025 and now runs inside Google Cloud while keeping its multicloud commitment. The exit reset valuations across the sector.
2. Aqua Security

Aqua pioneered container security and now runs a full cloud-native application protection platform from code to production.
- Industry: Cloud-Native Security
- Location: Ramat Gan / Burlington, MA
- Money Raised: $325 million; valued at over $1 billion [3]
- Why watch in 2026: Over 500 enterprises use Aqua, including six of North America’s ten largest banks. It is one of the very few independent CNAPP vendors left after years of consolidation.
3. Cato Networks

The SASE category was launched by Cato when they integrated networking and security into one solution provided in the cloud. The founder of Cato, Shlomo Kramer, was also one of the people who founded Check Point and Imperva.
- Industry: SASE / Network Security
- Location: Tel Aviv
- Money Raised: Over $1 billion; $4.8 billion valuation [4]
- Why watch in 2026: Cato serves roughly 3,500 large enterprises and says it could list publicly within months of deciding to — Israel’s biggest security IPO in a decade.
4. BioCatch

BioCatch detects fraud by studying how people manipulate their devices, thus noticing cases of device takeover and mule accounts that transaction examination fails to spot.
- Industry: Behavioral Biometrics
- Location: Tel Aviv / New York
- Money Raised: Permira took majority control at $1.3 billion; Visa agreed to acquire at roughly $2.4 billion in August 2026 [5]
- Why watch in 2026: BioCatch passed $100 million ARR and reached profitability in 2023. The Visa deal wires behavioural signals into global card rails.
5. Cheq

Cheq protects the go-to-market funnel, separating genuine buyers from bots, fake users, and now autonomous AI agents.
- Industry: Go-to-Market Security
- Location: Tel Aviv
- Money Raised: $183 million; unicorn valuation since 2022 [6]
- Why watch in 2026: Cheq analyses over six trillion signals daily across a million domains for 15,000 customers. Agentic traffic makes bot-versus-human classification a board-level question.
6. Dream Security

Dream offers to create national cyber defense platforms and sovereign AI for governments. The company was founded by Shalev Hulio and the former Austrian Chancellor Sebastian Kurz.
- Industry: Sovereign AI / Cyber Defence
- Location: Tel Aviv, Vienna, Abu Dhabi
- Money Raised: Over $410 million; $3 billion valuation, June 2026 [7]
- Why watch in 2026: Dream signed contracts for nearly $300 million right after they commenced selling their platform Atlas.
“Land created empires. Industry created nations. Artificial intelligence will create the next super nations,” — said Shalev Hulio, Co-Founder and CEO of Dream.
7. Guardio

Guardio offers business-grade security to households, blocking phishing, scam calls, fake login pages, and identity scams when browsing, sending texts, and letters.
- Industry: Consumer Cybersecurity
- Location: Tel Aviv
- Money Raised: $167 million; $1.1 billion valuation, September 2026 [8]
- Why watch in 2026: Guardio passed one million paying customers and $150 million ARR after four years of triple-digit growth. Wiz CEO Assaf Rappaport joined the round personally.
“Security wins when it deeply understands context. In the AI era, scams are more sophisticated and personal than ever and Guardio is bringing that depth of protection to the billions of people left to fend for themselves online.” said Assaf Rappaport, Co-Founder and CEO of Wiz.
8. Pentera

Pentera automates adversarial testing, safely emulating real attacks to prove which exposures actually matter.
- Industry: Security Validation
- Location: Tel Aviv / Burlington, MA
- Money Raised: $250 million; unicorn since 2022 [9]
- Why watch in 2026: More than 1,100 companies use Pentera, which also bought DevOcean and EVA Information Security in the last months of 2025 to enhance AI remediation and red teaming services they have.
9. Sweet Security

Sweet stops cloud attacks in runtime rather than inferring risk from static configuration and extends that to AI models and agents.
- Industry: Runtime CNAPP / AI Security
- Location: Tel Aviv
- Money Raised: $120 million [10]
- Why watch in 2026: ARR grew sixfold and enterprise customers tenfold in the year before its Series B. Its AI platform surfaces shadow AI by finding every LLM server and agent running.
10. Torq

Torq runs security operations centers with autonomous AI agents that investigate and remediate without playbooks.
- Industry: Agentic Security Operations
- Location: Tel Aviv / New York
- Money Raised: $332 million; $1.2 billion valuation [11]
- Why watch in 2026: Torq reached unicorn status in January 2026 in a round led by Merlin Ventures, a fund focused on US federal markets. Public-sector SOC budgets are next.
11. Oak

Oak is building an AI-native identity operating system governing human, machine, and AI-agent identities from one control plane.
- Industry: Identity Security
- Location: Tel Aviv / San Francisco
- Money Raised: $60 million seed, July 2026 [12]
- Why watch in 2026: It is one of the biggest rounds ever raised by security companies from Israel. The founder of the company, Shai Morag, sold three companies for approximately $500 million in total.
Leading AI, Data & Developer Platforms in Israel
Core AI companies absorbed 35% of national investment in 2025, and Israeli AI companies now set the pace for the whole ecosystem. These seven Israeli AI companies rank among the strongest AI startups in Israel, and Israeli startups now claim a meaningful share of global AI funding.
12. Wonderful

Wonderful is an enterprise AI OS that coordinates operations, workflows, data, and integrations.
- Industry: Enterprise AI
- Location: Tel Aviv / Amsterdam
- Money Raised: Roughly $840 million, including a $550 million Series C at $5 billion in September 2026 [13]
- Why watch in 2026: Revenue multiplied from around $1M to $70M from 35 markets. Salesforce invested for the first time here, which is an indicator of ambitions in distribution and other areas.
13. Firebolt

Firebolt runs a cloud data warehouse built for low-latency, high-concurrency analytics, competing on speed per dollar.
- Industry: Cloud Data Warehouse
- Location: Tel Aviv
- Money Raised: $269 million; $1.4 billion valuation [14]
- Why watch in 2026: Firebolt restructured in early 2026 and refocused on AI and agent workloads, where query latency caps application quality.
14. Lightricks

Lightricks makes creative software used by hundreds of millions and now leads in open-weight generative video.
- Industry: Generative Media
- Location: Jerusalem
- Money Raised: $335 million; $1.8 billion valuation [15]
- Why watch in 2026: The company launched LTX-2 in January 2026, making the training code and weights available for an audio-visual model working in the 4K format on PCs owned by common users. The use of data licensed from Getty Images and Shutterstock has addressed a major concern of organizations.
15. Redis

Redis is the in-memory data platform behind much of the world’s real-time software, now central to vector search.
- Industry: Database Infrastructure
- Location: Tel Aviv R&D / Mountain View
- Money Raised: Approximately $350 million; $2 billion valuation [16]
- Why watch in 2026: Redis sits directly in the inference path as a vector and semantic cache layer. It cut about a quarter of its Israeli workforce in July 2026, so watch execution closely.
16. Sett

Sett uses agentic AI to generate and test video and playable ads for mobile games, attacking creative fatigue.
- Industry: AI Creative / AdTech
- Location: Tel Aviv
- Money Raised: $57 million [17]
- Why watch in 2026: The company has made a deal with Zynga, Rovio, Playtika, and Unity to create new openings in the finance and e-commerce sphere under the leadership of founders who used to work in Unit 8200.
17. Simply (JoyTunes)

Simply has developed applications that teach music and drawing and also have the ability to change based on the user’s performance directly in the process of learning.
- Industry: EdTech
- Location: Tel Aviv
- Money Raised: $93 million; unicorn valuation since 2021 [18]
- Why watch in 2026: It has unique MusicSense technology, which is difficult to imitate, and is constantly expanding product offerings from music and music education to other hobbies.
18. StarkWare

StarkWare commercialized STARK proofs, the cryptography that lets blockchains verify huge computations cheaply.
- Industry: Zero-Knowledge Cryptography
- Location: Netanya
- Money Raised: Over $260 million; $8 billion valuation [19]
- Why watch in 2026: StarkEx has processed over a trillion dollars in cumulative volume. Extending Starknet to Bitcoin would push the technology toward mainstream settlement.
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Top DeepTech, Hardware & Bioconvergence Startups
Israel is the leading deep-tech hub outside the United States, and the cumulative valuation of its private deep-tech companies has passed $177 billion. These eight deep-tech startups in Israel show the range.
19. Hailo

Hailo designs edge AI processors that run vision and generative models directly on devices instead of in the cloud.
- Industry: Edge AI Semiconductors
- Location: Tel Aviv
- Money Raised: Approximately $340 million; peak valuation $1.2 billion [20]
- Why watch in 2026: Microchip Technology agreed to acquire Hailo in July 2026, inheriting over 100 customers and roughly 10,000 developers. The price sat well below earlier valuations — a lesson in hardware capital intensity.
20. NextSilicon

NextSilicon built a dataflow architecture that reconfigures itself at runtime to match the software running on it.
- Industry: HPC Semiconductors
- Location: Tel Aviv
- Money Raised: $303 million [21]
- Why watch in 2026: Sandia National Laboratories deployed its Maverick-2 accelerators in the Spectra supercomputer. It also revealed Arbel, its own RISC-V CPU — a rare full-stack silicon effort.
21. Xsight Labs

Xsight Labs makes programmable networking silicon — the E1 data processing unit and X2 Ethernet switch — for AI data centres.
- Industry: AI Networking Semiconductors
- Location: Tel Aviv
- Money Raised: Over $300 million at a $2.8 billion post-money valuation, July 2026 [22]
- Why watch in 2026: SpaceX enlisted the X2 switch for Starlink, and E1 operates at 800 Gbps with 75 watts. Power efficiency is the key limitation of AI infrastructure.
22. StoreDot

StoreDot developed silicon-dominant lithium-ion cells delivering 100 miles of range in five minutes of charging.
- Industry: EV Battery Technology
- Location: Herzliya
- Money Raised: Over $200 million from partners including BP, Daimler, Volvo, Polestar, and VinFast [23]
- Why watch in 2026: Their $800 million SPAC merger was abandoned in February 2026 after private funding had not been successful, and the majority of employees were downsized. Automotive manufacturers accepted the technology, yet this is a distressed turnaround story instead of a growth one.
23. Vayyar

Vayyar produces a 4D imaging radar placed on a chip that allows seeing through objects and darkness without cameras.
- Industry: Imaging Radar
- Location: Yehud
- Money Raised: Approximately $296 million; valued around $1.5 billion [24]
- Why watch in 2026: One chip solves problems of cabin safety in automobiles, presence of children, and monitoring of elderly falls. Regulation creates demand.
24. Wiliot

Wiliot produces Bluetooth devices powered by ambient radio energy that connect every item to the web.
- Industry: Ambient IoT
- Location: Caesarea
- Money Raised: $364 million, including $75 million from Avery Dennison in April 2026 [25]
- Why watch in 2026: Walmart is implementing approximately 90 million IoT pixels across 4600 stores and over 40 distribution centres by 2026, which is the biggest implementation of ambient IoT ever done.
25. Converge Bio

Converge Bio employs modeling techniques on genetic constructs, including DNA, RNA, and proteins, which they later assemble into systems for the design of vaccines and drug development.
- Industry: AI Drug Discovery
- Location: Tel Aviv / Boston
- Money Raised: $30.5 million, including a $25 million Series A in January 2026 [26]
- Why watch in 2026: The company already has over twelve customers from the pharmaceutical and biotechnology industry that have used the model for more than forty solutions.
26. Momentis Surgical (Memic)

Momentis produced a newly invented surgical robot called Anovo, which has reduced the complexity of the operations by enabling the use of robotic arms that perform all necessary movements through one access point.
- Industry: Surgical Robotics
- Location: Or Yehuda / Fort Lauderdale
- Money Raised: Approximately $128 million [27]
- Why watch in 2026: Anovo is fully approved for commercial use by the FDA to perform minimally invasive surgeries.
High-Growth Enterprise SaaS, FinTech & LogiTech
Israeli SaaS companies have matured from point tools into systems of record. These eight rank among the strongest startups in Israel by revenue durability, and most are now Israeli unicorns.
27. HiBob

HiBob’s Bob platform manages HR, payroll, compensation, performance, and workforce planning for mid-market and multinational employers.
- Industry: HR Tech
- Location: Tel Aviv / New York
- Money Raised: Over $700 million; valued at over $3.2 billion after a $166 million Salesforce-led round in September 2026 [28]
- Why watch in 2026: Having crossed $100m ARR, Bob now defines the organisational data layer that AI agents will interrogate. With Salesforce leading its round, it’s not a stretch to believe this.
28. Papaya Global

Papaya Global leads payroll and workforce payments in 160+ countries and 130 currencies on a single platform.
- Industry: Global Payroll / FinTech
- Location: Tel Aviv
- Money Raised: $440 million; $3.7 billion valuation [29]
- Why watch in 2026: As first reported by Calcalist, during the month of January 2026, Papaya was in advanced sales discussions at a valuation of $3.5 billion to $4.5 billion, with names including SAP, Oracle, and private equity. Papaya CEO Eynat Guez was Israel’s first female unicorn CEO.
29. Guesty

Guesty’s operating system is used by short-term rental managers for managing listings, guests, prices, payments, and distribution.
- Industry: PropTech
- Location: Tel Aviv / New York
- Money Raised: Approximately $410 million; roughly $900 million valuation [30]
- Why watch in 2026: Guesty raised capital at its latest funding round led by KKR. The company also announced the launch of Agent Hub in June 2026, aimed at moving property management to agency operations.
30. Justt

Justt fights chargebacks with AI that assembles tailored evidence per dispute, replacing templates and manual analyst work.
- Industry: FinTech / Payment Disputes
- Location: Tel Aviv
- Money Raised: $100 million [31]
- Why watch in 2026: Revenue tripled in 2023 and more than doubled in 2024, with a stated path to profitability in 2027. The platform weighs 500-plus data points per case.
31. Bringg

Bringg powers the last mile of delivery for owned fleets and hundreds of carriers, enabling retailers to have one layer of control.
- Industry: Delivery Orchestration
- Location: Tel Aviv / Chicago
- Money Raised: Approximately $184 million; unicorn valuation since 2021 [32]
- Why watch in 2026: Bringg is a delivery and enterprise fleet orchestration platform that manages an estimated 200 million deliveries per year for more than 800 clients, from Coca-Cola to Walmart to Best Buy. Carrier-agnostic orchestration will matter more as networks mature and compound.
32. Drivenets

Drivenets replaces single-vendor proprietary router hardware with software on white-box hardware and uses the same architecture for AI cluster fabrics.
- Industry: Cloud-Native Networking
- Location: Ra’anana
- Money Raised: Approximately $1 billion; $8.5 billion valuation after a $410 million Series D in June 2026 [33]
- Why watch in 2026: Drive Nets has been cash-flow positive since 2025, with more than $1 billion in secured business, and an AMD-led round, backing its multi-vendor AI fabric.
33. Fabric

Fabric constructs robotic micro-fulfilment infrastructure that allows retailers to pack and ship products from locations that are closest to buyers.
- Industry: Warehouse Robotics
- Location: Tel Aviv
- Money Raised: $336 million [34]
- Why watch in 2026: Fabric has moved from running its own locations to granting licenses for its technology to retailers, which is a much more efficient method in terms of capital.
34. Optibus

Optibus uses AI to plan, manage, and operate public transit systems, from planning the routes to scheduling drivers and implementing e-bus fleets.
- Industry: Transit Software
- Location: Tel Aviv
- Money Raised: $260 million; $1.3 billion valuation [35]
- Why watch in 2026: There are operators in over 1,000 cities that employ the services of Optibus. The electrification of fleets brings about a shift in the scheduling process, with Optibus being the developer of the technology that makes this possible.
Government Support & Non-Dilutive Funding Programs

Public capital is a real part of how startups in Israel get built. The Israel Innovation Authority issues conditional grants repaid through royalties only if a funded product generates sales.
| Program | Maximum support | Grant rate | Who qualifies | Status |
| Ideation (Tnufa) | NIS 200,000 over 12 months | 80% of approved budget | Individual entrepreneurs and new companies | Open year-round |
| Venture Incubators | Up to NIS 40 million over 5 years per incubator | Varies by track | Deep-tech ventures via licensed incubators | Open year-round |
| Angels Law tax credit | ILS 4 million investment cap | Investor’s capital gains rate | Private investors in qualifying R&D companies | Temporary order through end of 2026 |
| Fast-Track Runway Program | NIS 2M early-stage / NIS 15M early growth | 33% or 50% of the approved R&D budget | Companies with 12 months’ runway or less | 29 July – 19 November 2026 |
1. Ideation & Incubator Track (Tnufa & Incubators)
Tnufa provides a conditional grant of a maximum NIS 200,000 in 12 months, capped at 80% of the approved budget. Entrepreneurs are not required to resign from their jobs, establish a company, or give up control over the project.
The funds are used for prototypes, intellectual property protection, patent attorneys, supporting services, and trade show costs but do not cover salaries and overhead costs. The incubator track follows in one step and provides early funds to deep-tech ventures along with operational support. Israel has run technological incubators since 1991, which is why top startup accelerators in Israel are unusually well integrated with public funding.
2. The Angels Law Tax Framework
The Law for the Encouragement of Knowledge-Intensive Industries lets private investors claim a tax credit calculated by multiplying their investment in a qualifying Israeli R&D company by their capital gains rate.
The cap is ILS 4 million for the credit, or ILS 5.5 million for the alternative deduction during a share swap. Investors choose one, not both. The temporary order expires at the end of 2026, so Israeli startups raising angel rounds should confirm eligibility documentation early, because investors price the benefit into their decisions.
3. The Fast-Track Runway Program & R&D Fund
Launched in response to shekel appreciation shortening runways, this program extends a company’s runway by six months through an accelerated R&D grant, with decisions in roughly 20 to 30 business days.
Early-stage companies founded within three years can receive up to NIS 2 million; early-growth companies up to NIS 15 million, each at 33% or 50% of the approved budget. Applicants need a runway of under 12 months, 40% of last year’s spend on R&D, and half of the spend incurred in Israel. Applications close on 19 November 2026.
Summary
In 2026, there are more than 27,000 startups located in Israel; nevertheless, the majority of the money and attention accumulate in a few hundred of them. This classification of startups includes only the ones that have secured funding, demonstrated traction, and hold some sort of legitimate technology.
Three patterns matter. First, security remains the center of gravity, and the newest cybersecurity startups in Israel sell into AI budgets rather than security budgets. The second trend is that for the first time in ten years, semiconductors and infrastructure are attracting more capital than before. Finally, the best startups in Israel increasingly achieve nine-figure revenue before raising any capital for growth, giving the balance of power to the founders.
The risks are equally clear. Funding concentrates in fewer, larger rounds; small rounds have hit a decade low; and a growing share of employment sits outside the country. Diligence is the team’s location, not just its flag. Several upcoming Israeli unicorns mentioned here run the majority of their businesses from the United States, and even some established Israeli unicorns have this approach.
The lesson for the founders is that non-dilutive capital really exists. Tnufa, incubator tracks, the Angels Law, and the Fast-Track program cost no equity. Use them before a priced round, not after.
We track funding rounds, exits, and emerging tech startups in Israel every week. Follow Digest.Pro on LinkedIn to get each breakdown as it publishes.
FAQs
More startups per capita, not more overall. The US, China, and India have more companies in total. Around 27,000 active tech startups in Israel cater to a population of around 10 million, with the majority based in Tel Aviv.
Mandatory military service and numerous R&D universities have helped Israel develop this phenomenon. Thousands of engineers are trained by the technology sector by the time they reach the age of twenty-two. The Innovation Authority provides grants that fund research and development efforts.
Well-known Israeli firms are Check Point, Cyber Ark, Wix, monday.com, Mobileye, Waze, Fiverr, and Wiz. Others have been acquired by overseas investors – Google bought Waze and Wiz – while Check Point, Wix, and monday.com remain Israeli.
That name came from a 2009 book by Dan Senor and Saul Singer, “Start-up Nation,” which explained the extent of Israel’s technology output. It stuck because they proved to be true: high-tech accounts for 18.3% of Israeli GDP and 58% of exports.
Elite technology units act as an unusually early talent pipeline, training engineers on real operational problems at 18 to 21. Unit 8200 alumni founded Check Point, CyberArk, and Sett; Unit 81 alumni founded Hailo. Those units also create dense peer networks that become co-founding teams.
The Israeli market is too small to build a large software business, so US revenue is a requirement rather than a later stage. Most companies open a New York or Bay Area commercial office within two years while keeping R&D at home, a pattern shared by soonicorns in Israel and mature scaleups alike. By March 2026, only 62% of employees at private Israeli companies worked in Israel.
Code, documents, contracts, and investor relations are conducted entirely in English. Hebrew is used only for government documents and for paying salaries, with assistance from a lawyer or accountant in Israel.
Mid-level software engineers earn a gross monthly salary of NIS 22,000 – 35,000, with more senior engineers earning even more. Employers should assume an additional 125% – 135% of gross salary plus national insurance, pension, severance, and education funds.
The IIA is the government agency for planning and financing national innovation policy. It provides predominantly conditional grants (no equity involved) and funds. technological incubators, the R&D fund, the TAAS program, the Tnufa program, and bilateral programs. Funding from IIA is repaid via royalties on sales only if the product gains revenue.
Foreign capital dominates by volume, while local funds dominate by deal count across startups in Israel. Roughly 70% of venture capital invested during 2025 came from foreign sources, yet 61% of active investors were Israeli. Foreign VC firms make up about 25% of active investors, alongside 89 foreign corporate venture funds.
References
- https://innovationisrael.org.il/en/press_release/israeli-high-tech-report-2026/
- Google. (2026, March 11). Google completes acquisition of Wiz. https://blog.google/innovation-and-ai/infrastructure-and-cloud/google-cloud/wiz-acquisition/
- Aqua Security. (2024, January 3). Aqua Security closes $60M additional funding at a valuation above $1B. https://www.aquasec.com/news/60m-additional-funding/
- Cato Networks. (2025, June 30). Cato raises $359 million at a valuation of more than $4.8 billion. https://www.catonetworks.com/news/cato-raises-359-million/
- Permira. (2026, August 3). Permira agrees sale of BioCatch to Visa. https://www.permira.com/news-and-insights/announcements/permira-agrees-sale-of-biocatch-to-visa
- Tracxn. (2026). CHEQ — company profile, team, funding and competitors. https://tracxn.com/d/companies/cheq/__oE2Zm4W2Apc1lNtPKZeGF6yyn-FJ5NjjVkAKWFphlnQ
- Dream Security. (2026, June 18). Dream raises $260M, reveals sovereign AI for nations. https://dreamgroup.com/blog/dream-raises-260m-reveals-sovereign-ai-for-nations
- PR Newswire. (2026, September 3). Consumer cybersecurity pioneer Guardio reaches $1.1 billion valuation. https://www.prnewswire.com/news-releases/consumer-cybersecurity-pioneer-guardio-reaches-1-1-billion-valuation-302868923.html
- PR Newswire. (2025, March 12). Pentera secures $60M to lead security validation market consolidation. https://www.prnewswire.com/il/news-releases/pentera-secures-60m-to-lead-security-validation-market-consolidation-and-drive-next-phase-of-growth-302399599.html
- SecurityWeek. (2025, November 12). Sweet Security raises $75 million for cloud and AI security. https://www.securityweek.com/sweet-security-raises-75-million-for-cloud-and-ai-security/
- CTech. (2026, January 11). Cyber startup Torq joins unicorn ranks after $140 million raise at $1.2 billion valuation. https://www.calcalistech.com/ctechnews/article/bkaxxwwhzx
- SecurityWeek. (2026, July 16). Oak emerges from stealth mode with $60 million in funding. https://www.securityweek.com/oak-emerges-from-stealth-mode-with-60-million-in-funding/
- TechCrunch. (2026, September 2). Wonderful more than doubles its valuation to $5B in under 6 months. https://techcrunch.com/2026/09/02/wonderful-more-than-doubles-its-valuation-to-5b-in-under-6-months/
- TechCrunch. (2022, January 26). Firebolt raises $100M at a $1.4B valuation. https://techcrunch.com/2022/01/26/firebolt-a-data-warehouse-startup-raises-100m-at-a-1-4b-valuation-for-faster-cheaper-analytics-on-large-data-sets
- https://www.lightricks.com/post/lightricks-award-winning-app-developer-raises-130m-series-d-to-power-expansion-and-champion-creator-economy
- The Times of Israel. (2026, July 13). Israeli-founded data tech unicorn set to slash 25% of its Tel Aviv workforce. https://www.timesofisrael.com/israeli-founded-data-tech-unicorn-set-to-slash-25-of-its-tel-aviv-workforce/
- CTech. (2026, March 29). Sett secures $30 million Series B to automate game marketing with AI agents. https://www.calcalistech.com/ctechnews/article/rjxbyqisze
- The Times of Israel. (2021, June 21). Music-app maker JoyTunes said to be new Israeli unicorn with Google investment. https://www.timesofisrael.com/music-app-maker-joytunes-said-to-be-new-israeli-unicorn-with-google-investment/
- Tracxn. (2026). StarkWare — company profile, team, funding and competitors. https://tracxn.com/d/companies/starkware/__ioycWpf8SqXDW_N6JDZs4qBOQpE1u5vMggyEiIooDvg
- CTech. (2026, July 25). Microchip acquires Hailo after Israeli AI chip startup’s fall from $1 billion valuation. https://www.calcalistech.com/ctechnews/article/sje9qxgrgg
- NextSilicon. (2024, October 28). NextSilicon unveils Maverick-2. https://www.nextsilicon.com/insights/news_article_2/
- PR Newswire. (2026, July 30). Xsight Labs raises more than $300 million at $2.8 billion valuation. https://www.prnewswire.com/news-releases/xsight-labs-raises-more-than-300-million-at-2-8-billion-valuation-to-power-next-generation-ai-and-cloud-networks-302838293.html
- CTech. (2026, February 19). StoreDot’s $800 million SPAC deal collapses, faces cash crunch. https://www.calcalistech.com/ctechnews/article/eq035onah
- CTech. (2022, June 6). Vayyar raises $108 million Series E at over $1 billion valuation for 4D imaging radar. https://www.calcalistech.com/ctechnews/article/b1uyfsj00c
- EE Times. (2026). Ambient IoT: from battery-free promise to mass-market reality. https://www.eetimes.com/ambient-iot-from-battery-free-promise-to-mass-market-reality/
- TechCrunch. (2026, January 13). AI drug discovery startup Converge Bio pulls in $25M. https://techcrunch.com/2026/01/13/ai-drug-discovery-startup-converge-bio-pulls-in-25m-from-bessemer-and-execs-from-meta-openai-and-wiz/
- https://finder.startupnationcentral.org/company_page/memic-innovative-surgery
- https://www.calcalistech.com/ctechnews/article/h1wfdqnuge
- Globes. (2021, September 11). Papaya Global raises $250m at $3.7b valuation. https://en.globes.co.il/en/article-papaya-global-raises-250m-at-37b-valuation-1001384379
- TechCrunch. (2024, April 10). Guesty snaps up $130M at $900M valuation. https://techcrunch.com/2024/04/10/guesty-snaps-up-130m-at-900m-valuation-to-help-property-managers-list-on-airbnb-and-beyond/
- PR Newswire. (2024, December 19). Justt secures $30M Series C funding. https://www.prnewswire.com/news-releases/justt-secures-30m-series-c-funding-to-accelerate-global-expansion-advance-ai-technology-and-achieve-profitability-302336294.html
- Supermarket News. (2021). Last-mile software firm Bringg collects $100M in new funding. https://www.supermarketnews.com/grocery-technology/last-mile-software-firm-bringg-collects-100m-in-new-funding
- DriveNets. (2026, June 1). DriveNets secures $410M Series D. https://drivenets.com/news-and-events/press-release/drivenets-secures-410m-series-d-to-meet-surging-demand-for-ethernet-fabric-in-large-scale-ai-deployments/
- Tracxn. (2026). Fabric — company profile, team, funding and competitors. https://tracxn.com/d/companies/fabric/__45P45SwmbdTtdMBv2_4nAc_ubE2ExnhjbSclfhlS2YU
- PR Newswire. (2022, May 16). Optibus becomes the first public transportation unicorn with Series D closing. https://www.prnewswire.com/il/news-releases/optibus-becomes-the-first-public-transportation-unicorn-with-series-d-closing-301547388.html
- Israel Innovation Authority. (2026, May 31). 2026 High-Tech Status Report. https://innovationisrael.org.il/en/press_release/israeli-high-tech-report-2026/
- Israel Innovation Authority. (2026). Fast-Track Funding Program – R&D Fund. https://innovationisrael.org.il/en/programs/fast-track/
- Israel Innovation Authority. (2026). Ideation (Tnufa) Incentive Program – Startup Fund. https://innovationisrael.org.il/en/programs/ideation-tnufa-incentive-program/
- Gartner. (2025, July 29). Gartner forecasts worldwide end-user spending on information security to total $213 billion in 2025. https://www.gartner.com/en/newsroom/press-releases/2025-07-29-gartner-forecasts-worldwide-end-user-spending-on-information-security-to-total-213-billion-us-dollars-in-2025
- Government of Israel. (2026, June 17). Tel Aviv ranked #4 global startup ecosystem. https://www.gov.il/en/pages/tel-aviv-ranked-no-4-global-startup-ecosystem-17-jun-2026
- Barnea Jaffa Lande. (2025). “Angels Law” promotes investments in Israeli high-tech startups. https://barlaw.co.il/practice_areas/tax/client_updates/the-angels-law-promotes-investments-in-israeli-high-tech-startups/