Israeli startups raised $1.1 billion in funding in January

Israeli startups have once again proven their prowess by securing a staggering $1.1 billion in funding during January 2026. While this figure is already impressive, it may not even represent the full extent of investments pouring into the country, as some startups operate in stealth mode and choose not to disclose their funding details. This influx of capital follows a robust fundraising year in 2025 when Israeli privately-held tech companies amassed a total of $10.7 billion, according to reports by IVC-LeumiTech. This amount represents a steady increase from the $9.58 billion raised in 2024 and the $6.9 billion recorded in 2023. However, it is important to note that it falls short of the massive $15 billion raised in 2022 and the record-breaking $25.6 billion raised in 2021.

In the latest funding rounds, several Israeli tech companies emerged as big winners in January 2026. Upwind Security, a cloud security firm, led the pack by securing an impressive $250 million. Close on its heels, cybersecurity company Claroty raised $200 million, while Torq, a security hyper-automation specialist, secured $140 million. Other notable recipients of funding include digital document company Factify with $73 million, financial planning firm DataRails with $70 million, and AI penetration testing company Novee with $51.5 million.

These investments underscore the strength and diversity of Israel’s tech ecosystem, with companies across various sectors attracting significant interest from investors. The ability of Israeli startups to continuously raise substantial amounts of capital reflects the confidence that investors have in the country’s entrepreneurial spirit and innovation capabilities. Despite facing challenges in 2025 due to the global economic climate, Israeli tech companies have proven resilient and continue to draw interest from both local and international investors.

The growth of Israel’s tech sector is further evident in the increasing number of companies securing significant rounds of funding. This trend bodes well for the country’s startup ecosystem and positions Israel as a key player in the global tech landscape. With a track record of success and a pipeline of innovative companies, Israel is poised to remain a hub for technological innovation and entrepreneurial excellence in the years to come.