---
source_url: "https://www.israeldefense.co.il/en/node/69800"
title: "Israel’s Defense Tech Boom: Startups Raise $3 Billion in First Half of 2026 | Israel Defense"
mirrored_at: 2026-08-23T01:36:46.921Z
host: www.israeldefense.co.il
cited_in_42a: true
mirror_canonical: "https://index.42a.ai/www.israeldefense.co.il/en/node/69800"
---

> **Original source:** https://www.israeldefense.co.il/en/node/69800

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Defense technologies captured nearly one-third of Israreli high-tech investment, as global demand for battlefield-proven systems surges

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![Israel’s Defense Tech Boom: Startups Raise $3 Billion in First Half of 2026](https://www.israeldefense.co.il/sites/default/files/2026-07/Screen%20Shot%202026-07-19%20at%206.11.11.jpg)

Defense Tech Startups and Investors Forum. Photo credit: Sharon Perl

Israel’s defense tech sector is seeing unprecedented growth, with startups working with the Ministry of Defense raising nearly $3 billion in the first six months of 2026 — three times the total amount raised during all of 2025.

Defense tech and dual-use companies accounted for nearly 30% of the $8.4 billion invested in Israeli high-tech during the first half of the year, highlighting the growing investor focus on technologies driven by current conflicts and military needs. Around 800 Israeli startups are currently fulfilling direct procurement orders from the Ministry of Defense.

The figures were presented at the Haifa DefenseTech Startups and Investors Forum, hosted by HiCenter Ventures, Gornitzky GNY and EY, which brought together entrepreneurs, investors and defense industry leaders to discuss the sector’s rapid expansion.

The surge is being fueled by rising global demand following conflicts in Ukraine and the Middle East, alongside growing interest in Israeli technologies that have been tested in operational environments.

“Israel is rapidly transforming from a ‘Cyber Nation’ to a ‘Defense Tech Nation,’” said Ilana Averkin, Head of Defense-Tech at HiCenter Ventures. She warned that startups must avoid trying to build full-scale systems that compete directly with established defense companies. She warned that “The challenge is navigating the ‘valley of death’ between seed and growth stages,”, advising companies to develop modular technologies that can be integrated by major defense contractors.

Investors are also increasingly focusing on the software layer of modern warfare.

“Investment is increasingly flowing toward the computerized brain rather than just the physical hardware,” said Lior Hanuka, CEO of HiCenter Ventures. “Products like battlefield operating systems, encrypted cloud communications and autonomous software for drones and robots are achieving high valuations.”

Dr. Moshe Shuker, VP of R&D at Rafael, highlighted the role of cooperation between startups and established defense companies.

“The synergy between agile startups and established defense organizations significantly shortens the path from initial concept to battlefield deployment,” he said.

Adv. Ariel Sagee of Gornitzky said government agencies are also changing their approach to innovation. “Organizations that were once viewed as highly bureaucratic are now taking a far more proactive approach,” he said, pointing to increased efforts to accelerate collaboration and remove barriers.

As defense spending rises worldwide, Israel’s defense tech ecosystem is emerging as one of the country’s fastest-growing technology sectors, attracting both capital and international demand.

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