2026H1 · Israel Startup Insights

Israel Startup Insights.

A data-driven exploration of the financial and workforce trends shaping Israel’s private startup ecosystem. This report provides insights and benchmarks via an interactive research platform, crafted to uncover opportunities.

Created by
Poalim TechDealigence
01Methodology

A report grounded in primary data.

This research focuses on private, VC backed startups at the seed stage or beyond, either headquartered or with significant operations in Israel that disclosed a venture funding round of $1M+ between June 2021 - May 2026.

1,685
Companies tracked
private, VC-backed, $1M+
161,730
Employees
classified by Dealigence AI
97.8%
Classification accuracy
audited by humans
ScopeThe report does not address acquired, publicly traded and multinational centers in employment trends.
IsraeliVC-Backed$1M+ roundsPrivateJun 2021 — May 2026Seed+ Stage
02Funding Trends

Israeli Startups Raised $8.6B+ During a War.

$9B+ pace, conflict-proof momentum, and repeat founders on the rise. Israeli venture enters H1'26 from a position of strength.

Departing from traditional funding round classifications, we adopted a people-focused approach to categorize company sizes:

Early Stage5–50 employees
Early Growth51–200 employees
Growth Stage201–500 employees
Enterprise501+ employees

This approach acknowledges that headcount often aligns more closely with operational maturity than round labels.

2nd+ Timers were classified based on previous professional experience of at least 2 years of operating a venture backed startup as a co-founder.

03Capital Demand

Hidden Opportunities to Deploy Capital.

AI repeat founders lock-in capital, while Fintech and Deeptech move to become a new frontier.

Capital demand is calculated based on quarters passed since the last announced funding round.

Runway securedLess than 6 quarters ago
Fundraising6–8 quarters ago
Need funding8–12 quarters ago

Excluded: companies that haven’t disclosed in over 12 quarters.

04Exit Trends

Strong liquidity continues with $10.5B+ in Exits.

M&A slows on the surface, beneath it, deeptech liquidity explodes 2.7x and adjusted exits outpace H1'25.

Excluding: Wiz & CyberArk acquisitions, covered in previous reports.

Includes only publicly reported acquisitions of Israeli companies; IPOs are excluded.

05Workforce Trends

Startup Employment Remains Resilient.

Startups hire while corporations cut, but 75% of new jobs land offshore, with sales leading the charge.

  3. 03Offshoring is increasing75% of added jobs are outside Israel.
All Sectors
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06In partnership

Built together.

Two organizations, one shared interest in the long arc of Israeli innovation. This report is what happens when banking depth meets real-time intelligence.

Poalim Tech

Poalim Tech

Poalim Tech is the tech division of Bank Hapoalim, dedicated to the high-tech industry. We bank the full company life-cycle — from early stage all the way through to growth companies and unicorns, with services tailored to each stage.

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Dealigence

Dealigence

Dealigence equips the world's top investors and acquirers with real-time AI-driven insights and proprietary datasets that illuminate a company's trajectory — enabling sharper underwriting, stronger conviction, and more data-anchored decisions.

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ISIIsrael Startup InsightsH1 2026
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