Israel Startup Nation — 2026-10-24
Israel's tech ecosystem continues to command global capital, with Bill Ackman backing a secretive AI startup and defense-tech funding hitting a record $40.8 billion. Meanwhile, TASE is positioning itself as the primary exit route for Israeli startups, signaling a strategic shift away from US listings.
Today's Biggest Rounds
Two Delta — Tens of Millions (Seed/Series A)
- What they do: Developing technology to accelerate AI models and test reliability of AI systems operating web applications.
- HQ / Team: Israel; founded by Dvir Zeltzer and Dr. Eli David.
- Investors: Bill Ackman and Eric Schmidt.
- Why it matters: The involvement of high-profile US investors in a secretive Israeli AI firm with fewer than 10 employees highlights the intense global appetite for AI infrastructure innovation.
Defense-Tech Sector — $40.8 Billion (Total Investment)
- What they do: Military and dual-use technologies, including autonomous systems and deployable battlefield solutions.
- HQ / Team: Various Israeli startups.
- Investors: Global institutional and private investors.
- Why it matters: Investments have reached unprecedented levels due to rising military spending, confirming Israel's status as a global hub for defense innovation.
Mave — $59.7 Million (Week 43 Total)
- What they do: AI security solutions.
- HQ / Team: Israel/Africa/Middle East region.
- Investors: Led by Mave and Modelyo.
- Why it matters: AI security dominated regional funding this week, with startups across the Middle East and Israel raising nearly $60 million, reflecting a sector-wide pivot toward AI-driven defense.
New Launches & Product Moves
- Two Delta: The startup is reportedly collaborating with Nvidia on faster AI inference tools, aiming to solve critical bottlenecks in AI model deployment.
- Israel Aerospace Industries (IAI): Board Chairman Boaz Levy announced that IAI is leveraging AI tools to process vast quantities of information generated by its satellites, radar, and Arrow missile defense systems, positioning the state-owned giant for a tech-driven IPO.
Exits, M&A, and IPO Watch
- Eventer Technologies: The Canadian SaaS company announced a share purchase agreement to acquire the remaining 49% of its Israeli operating subsidiary, Eventer Israel, from related parties Xylo Technologies Ltd.
- Israel Aerospace Industries (IAI) IPO: IAI is preparing to launch an IPO within a year, marking a major potential exit for the defense sector.
Sector Spotlight
Defense-Tech & AI Infrastructure The convergence of defense and AI is the hottest vertical in Israel today. Global cybersecurity investment reached $5.26 billion in Q3 2026, with Israeli startups capturing nearly half of that capital ($2.425 billion). This momentum is driven by investor demand for companies securing AI systems and providing autonomous battlefield capabilities, as evidenced by the record $40.8 billion flowing into the sector.
Ecosystem Pulse
- TASE vs. NYSE: Tel Aviv Stock Exchange CEO Ittai Ben-Zeev is actively pitching Israeli startups to list locally, arguing that "New York is no longer an option" for many AI giants seeking global stage access without US regulatory hurdles.
- Ackman's Prediction: Bill Ackman, who recently backed Two Delta, publicly predicted the emergence of a $1 trillion Israeli company within a decade, signaling extreme confidence in the ecosystem's long-term trajectory.
- Global Capital Trends: Despite market challenges, Israel's startup ecosystem continues to attract global investors through resilience and cutting-edge technology, maintaining its status as a top-tier innovation hub.
What to Watch Next
- IAI IPO Filing: Keep an eye on the formal filing timeline for Israel Aerospace Industries' IPO, expected within the next 12 months.
- TASE Listings: Monitor for any major AI or defense startups announcing a pivot from US listings to the Tel Aviv Stock Exchange following the CEO's recent pitch.
Reader Action Items
- Track Two Delta: Follow updates on this secretive AI startup given its high-profile backing from Ackman and Schmidt and its Nvidia collaboration.
- Read the Weekly Firgun Newsletter: Check the latest edition from October 23 for a curated list of fresh funding rounds and acquisitions in the Israeli tech scene.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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