Israel’s reputation as the “startup nation” held firm even during the Israel–Hamas war, as global investors continued — and in some cases increased — their exposure to Israeli tech.
Since 2023, Israeli startups have raised record private capital, led by cybersecurity, defense, artificial intelligence, biotech, and dual-use technologies. The war highlighted, rather than weakened, Israel’s core advantage: founders and engineers with elite military technology training who are accustomed to operating under pressure.
Author and political advisor Dan Senor and investors including OurCrowd’s Ely Razin say the conflict validated Israel’s innovation model, with technologies tested in real-world conditions. International capital from the US, Gulf states, and Asia continued flowing, reflecting confidence in Israel’s globally integrated, export-driven tech ecosystem.
Bottom line: Investors stayed because Israeli tech proved it can innovate, scale, and deliver even in wartime — reinforcing its long-term strategic value.