The tech sector is a key driver of Israel’s economy, accounting for 20% of output, nearly 15% of jobs and more than 50% of exports.
The investment in 11 Israeli venture funds was made through two tracks in the Israel Innovation Authority’s Yozma Fund – the Institutional Investors Incentive Program and the Deep Tech Funds Program.
About $164 million of the total investment has come from Yozma, which has received $1 billion in commitments from institutions.
It aims for a total investment of public and private money of $2 billion through the two programmes, the authority said.
Traditionally, most investment has come from VC funds rather than institutional investors. But the Yozma fund, launched in April 2024, aimed to change that, offering insurance companies, pension funds and other institutional investors a mechanism to enhance returns on their investments in tech-focused Israeli VC funds over the subsequent 20 months.
“Fundraising by Israeli venture capital funds has declined sharply in recent years, as part of a global macroeconomic trend driven by changes in capital flows and interest rate environments, as well as challenges unique to Israel,” said authority CEO Dror Bin.
He said the Yozma Fund supported both generalist funds and those focused on deep tech, and has helped Israeli funds complete fundraising rounds.
It “will continue to invest in 2026, and we hope it will serve as an effective leverage tool for continued investment in Israeli high-tech as activity accelerates following the end of the (Gaza) war.”
