After a long and challenging war, Israeli tech stands on the cusp of significant recovery. With hostilities ending, there’s an urgent need for investment in technological innovation to drive the nation forward. The remarkable resilience of Israeli industry, combined with a powerful entrepreneurial spirit, signals a new era of breakthrough technological development. The AI revolution and the drive to create, invent, and grow aren’t just returning—they’re accelerating. Local entrepreneurs, ready to build significant technology companies, are ushering in a new generation that will shape Israel’s future in tech and innovation.
Perspective #1
Izhar Shay
Former Minister of Science and Technology, Investment Partner at DisruptiveAI Fund
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We’re at the end of a two-year war. Historically, post-war periods typically see significant economic growth, particularly in infrastructure development. We’ve seen this pattern in regional crises throughout the Middle East, and Israel will be no exception. We’re expecting substantial economic growth, including renewed capital flow and restored confidence from international investors. As they see the geopolitical situation stabilizing, they’ll return to investing in Israel, especially in Israeli tech. We already saw growth in tech investments in 2025, and this trend is expected to accelerate significantly post-war.
Looking at Israel’s entrepreneurial ecosystem, I’ve never seen such vibrant and energetic entrepreneurial spirit as we’re witnessing now. Many soldiers are returning from the battlefield eager to launch innovative ventures. Even those who didn’t serve in combat are feeling a profound drive to do meaningful work and build major Israeli companies. I expect this momentum to continue and intensify as the geopolitical climate improves.
The next 15 years will define the next generation of Israeli tech. This will be an era of entrepreneurship and highly impactful companies. I believe this generation will be built on Deep Tech foundations – AI, quantum computing, cybersecurity, and all the advanced technologies where Israel excels.
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Perspective #2
Hila Rom
Managing Partner, FutureFirst Ventures
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With the war ending and the potential expansion of regional peace agreements, Israeli tech finds itself at a historic inflection point. We’re looking at an unprecedented innovation surge – thousands of new companies, renewed domestic and foreign capital flow, and technology ventures that will propel the Israeli economy forward.
The combination of proven innovation, a growing pool of experienced entrepreneurs, AI-enabled development acceleration, and reasonable company valuations makes Israel an extremely attractive investment destination.
However, Israel’s fundamental challenges won’t disappear overnight. We need immediate action to preserve Israel’s competitive edge: fundamental reform of the education system with strengthened STEM programs, a strategic plan to combat brain drain, establishment of critical national AI infrastructure, restoration of foreign investor confidence, and continued efforts against antisemitism.
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Perspective #3
Amos Talmor
Partner, President of Seedbiz Group
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After years of investing in numerous ventures, the war disrupted the investment cycle – not just for me, but across the board. Now we’re facing a ceasefire across all fronts. This pause will first enable the return of reservists to their jobs, alleviating the labor shortage. Security stability should also stem the brain drain and even attract new entrepreneurs and talent. Additionally, many startups will accelerate business and technology development plans that were frozen or delayed, as global markets reopen. The defense tech sector, battle-tested and proven, is positioned for another investment wave. Ultimately, Israeli tech will further cement its position as a global technology powerhouse, transitioning from “Startup Nation” to “Scale-up Nation”-with emphasis on mature, established companies leading Israel’s economic recovery.
The end of the war represents a fundamental shift for Israel’s tech and startup ecosystem, serving as a catalyst for renewed growth after a challenging period. During the war, the tech sector demonstrated exceptional resilience – major deals closed, and we even saw increased investment in flagship areas like cybersecurity and Deep Tech. However, security and economic uncertainty slowed early-stage fundraising, created market concentration, and triggered some talent emigration. The war’s end will remove these barriers and unleash tremendous energy. Foreign investor confidence will return to previous levels and likely exceed them, validated by Israeli resilience during the crisis. Foreign venture capital funds that held back will re-enter the market with more realistic valuations, applying lessons from the 2021 bubble and focusing on profitability and building sustainable, long-term companies.
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Perspective #4
Bat-Sheva Moshe
GM Israel, Wix | Chairwoman, Future Initiatives
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There are no words to describe the Israeli tech industry’s incredible resilience under fire, living up to “Israel tech always delivers.” This was a two-year war with actual fire and missiles raining down across the entire country, not just the front lines.
Hundreds of thousands of employees were called to reserve duty—or their family members were—yet despite all the physical and mental challenges, the industry delivered. Fundraising continued, spectacular exits happened (including Wiz and CyberArk), and 2025 is on track to record the largest exit volume in Israeli history. Defense companies saw massive sales to countries worldwide that watched Israel’s sophisticated, technology-driven defense operations with amazement. We’ve broken records during what has been the most difficult period since Israel’s founding.
Looking at the data, the entrepreneurs, and the employees fills me with pride. They felt a deep commitment to strengthen Israel not only militarily but economically and technologically. They never stopped building and coding, not for a moment.
I have absolutely no doubt we’re entering a new peak era for Israel—in tech and beyond.
We’re already seeing clear recovery signals in venture capital fundraising, with over $3 billion raised in the last quarter alone—and December is still ahead! We’re seeing a massive wave of new startups launching, companies securing investments, and exits of all sizes happening at record speed. Companies with single-digit employee counts are selling for tens of millions within months of launching. It’s remarkable.
Beyond the obvious sectors—cybersecurity, AI, defense tech—Israel can lead in numerous verticals: health tech, infrastructure, and fintech, to name a few.
We have everything we need: people with unmatched resilience, hardworking and with chutzpa, a sense of mutual commitment that opens doors with a few WhatsApp messages, global focus that can only work to our advantage for market expansion, and profound love for our country and technology.
I couldn’t be more optimistic. And with God’s help, we will prevail through unity and love.
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Perspective #5
Gil Keret
Partner & Owner, CEO at Brooks-Keret
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The Israeli economy showed maturity and resilience during the war that exceeded all expectations. It’s almost an anomaly: how does the shekel strengthen during such a period? From an economic standpoint, we came through in much better shape than anticipated. Not everything is perfect, but the outlook is good.
Historically – not just in Israel – post-war periods have seen economic flourishing and foreign investment waves. I believe those who were waiting on the sidelines are now returning to invest in Israel, particularly in defense industries poised for major growth. The Abraham Accords already expanded opportunities significantly. We’re all hoping this leads to another surge and opens new channels.
We’re in an excellent geographic position, and I’m optimistic the situation will continue improving. I’m currently seeing and involved in fundraising for new funds, and existing funds completing their rounds. People are returning and reinvesting in Israeli innovation and tech. The outflow of capital abroad that we saw before the war has largely stopped – and that’s a very good sign. I have zero doubt that tech and startups will return to full strength.
I see it with our clients at Brooks-Keret – they’re successfully raising significant capital at reasonable valuations. I’m convinced this growth period will continue.
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Perspective #6
Sivan Neufeld
Head of Business Development, Israeli High-Tech Association
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The ceasefire opens a critical window for renewing Israel’s tech and startup ecosystem and presents an opportunity to leverage this crisis to strengthen the economy’s innovation engine. Israeli tech currently represents about 17% of GDP and employs over 400,000 people. In recent years, the industry has faced complex challenges: some companies halted operations, employees were called to reserves, investments were delayed, and uncertainty affected investors. Yet the sector proved exceptionally resilient—many companies continued raising capital and developing advanced technologies throughout this challenging period, demonstrating the strength of local entrepreneurship and innovation.
The Israeli High-Tech Association, part of the Manufacturers Association of Israel, leads industry advancement and advocates for companies and entrepreneurs. We closely monitor developments and help companies navigate the challenges. Our work includes facilitating company collaborations, supporting technological infrastructure, launching professional training initiatives and human capital retention programs, and developing programs that help startups maintain growth and innovation during difficult times.
With the return of stability, we expect several immediate positive impacts: companies can bring back employees from reserve duty, restore projects to full capacity, and renew international business relationships. Domestic stability will encourage investors to return to Israel, restore market confidence, and support new fundraising rounds that will strengthen companies’ ability to expand and compete globally.
Advanced sectors like deep tech, artificial intelligence, cybersecurity, digital health, and energy technologies saw increased demand even during this challenging period, proving the industry’s ability not just to survive but to thrive under pressure. The Israeli High-Tech Association continues working to amplify these trends through advanced training, promoting women and young entrepreneurs in the industry, and supporting early-stage startups to ensure their potential isn’t delayed.
Challenges remain: investment concentration in established companies could disadvantage young, agile startups entering the market with innovative ideas. The Israeli High-Tech Association is creating a supportive ecosystem that provides young entrepreneurs with tools, training, and resources to ensure innovation continues flourishing.
The ceasefire isn’t just temporary relief—it’s a critical moment to leverage the advantages Israel’s ecosystem has built over the years. This is an opportunity to restore sector growth, accelerate technological innovation, and create conditions for renewed investment, breakthrough technology development, and new company formation. The momentum in deep tech, AI, and cybersecurity, combined with Israel’s proven ability to develop advanced solutions in critical areas like health, energy, and security, positions the industry to grow and strengthen its global leadership.
In summary, the ceasefire places Israeli tech at a significant turning point. With the right vision, careful management, and systemic support led by the Israeli High-Tech Association, we can transform this moment into genuine opportunity for renewed growth, sustained innovation, and solidified Israeli leadership in global technology. Now is the time to leverage stability, restore investor confidence, support new startups, and ensure the next generation of Israeli entrepreneurship realizes its full potential.
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On behalf of Seedbiz and our entire entrepreneurial community, we thank everyone working in the foreground and behind the scenes for their action, dedication, and unwavering commitment to providing security even in the most difficult moments.
