Israeli tech is selling companies at a pace not seen here in years. According to IVC data published in the Weekly Firgun newsletter, 55 exits of Israeli tech companies were recorded in the third quarter of 2026, worth a total of about $5.5 billion. Year to date there have already been 138 exits, almost as many as the 140 in all of 2024.
And Q4 started strong
The figures do not yet include October's big deals. Intel announced the purchase of quantum computing company Classiq for about $2.2 billion to $2.3 billion, Proofpoint agreed to buy Varonis for about $6.3 billion, and Unconventional AI bought NeuReality. So the full year looks set to clearly beat 2024.
Many small deals
A large share of the exits are relatively small deals in which big companies buy young AI teams, sometimes with fewer than ten employees. Alongside them are deals in which investors get back less than they put in, such as the sale of XM Cyber's technology to CrowdStrike, which ended in layoffs of most of its Israeli staff.
What it means
For founders and employees, an active exit market means options are worth something. For investors, it returns money that can be reinvested in new companies. The question is whether the pace will hold if the tech giants, which lead most acquisitions, slow spending amid the market declines.
