Israeli Startups Raise 40% More Capital in H1 as Cybersecurity Commands Top Valuations
Updated
Updated · CTech · Jul 31
Israeli Startups Raise 40% More Capital in H1 as Cybersecurity Commands Top Valuations
3 articles · Updated · CTech · Jul 31
Summary
Israeli startups raised 40% more capital in the first half than a year earlier, marking a sharp funding rebound despite a tougher market for many founders.
Cybersecurity drove much of that increase, with Poalim Tech's Adi Hoorvitch-Lavi saying the sector is still strengthening even as defense and deep tech gain prominence.
Investors are also becoming more selective, favoring repeat founders and holding startups to higher standards, which is widening the gap between first-time teams and experienced operators.
That split is showing up in pricing: first-time founders are less likely to win comparable valuations, while seasoned cyber teams are still securing very high valuations.
AI remains part of the investment backdrop, with Hoorvitch-Lavi arguing it is not a bubble but a structural shift that startups now need to build into their core operations.