Cyber, software, defense, chips capture 86.8% of Israeli tech funding, per IVC & Leumi Tech Report
Israeli tech funding has become increasingly concentrated in a smaller number of sectors, according to the H1/2026 Tech Review by IVC Data and Insights and LeumiTech.
Cyber and enterprise software together attracted 67.3% of total capital raised in H1 2026. When combined with defense, space, and quantum technologies, and semiconductors, those four fields accounted for 86.8% of total Israeli tech funding.
The ten-year trend also shows where capital is no longer flowing at the same scale. In 2016, life sciences, fintech and insurtech, and automotive together represented 38.2% of capital raised. In H1 2026, their combined share had fallen to 10.5%.
Life sciences declined from 13.7% of capital raised in 2016 to 4.7% in H1 2026. Fintech and insurtech fell from 13.9% to 4.5%, while automotive, which accounted for 10.6% of capital in 2016, represented just 1.3% in H1 2026.
The data suggests that the story of Israeli tech funding is not only the rise of cyber, software, defense, and semiconductors, but also a broader reshaping of the ecosystem’s capital allocation over the past decade.
Read the full H1/2026 Tech Review here.
