This week felt like a milestone for venture capital.

Global VC funding reached a record $510 billion in the first half of 2026, driven almost entirely by AI. In the US alone, AI accounted for roughly 86% of venture investment, while OpenAI, Anthropic and a handful of frontier companies continue to absorb an unprecedented share of capital. Mega-rounds are no longer the exception—they're becoming the norm.

The same story is playing out in Israel.

Israeli startups raised approximately $8.4 billion during the first six months of the year, putting 2026 on track to become one of the strongest fundraising years in the country's history despite an ongoing war. But beneath the headline numbers is a structural shift: fewer companies are getting funded, while the best companies are raising larger rounds than ever before. AI infrastructure, cybersecurity, defence tech and deep tech continue to dominate investor attention.

This week's newsletter also covers the biggest AI announcements—from OpenAI, Meta, Anthropic and Microsoft—to the escalating infrastructure race between hyperscalers, alongside Israel's new National AI Strategy and what it signals about the government's long-term ambition to make AI a national priority.

As always, I've also included the week's biggest Israeli funding rounds, acquisitions, research reports, market maps and reading recommendations for founders, investors and anyone following the startup ecosystem.

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Recent articles

Weekly #FIRGUN Newsletter - July 10th 2026 Did you know that H1 2026 produced more Israeli unicorns than any other FULL year before? Also, what are the 5 areas most attractive for AI infrastructure according to Bessemer? and what is the hottest new AI category according to Benchmark? Read article

The Task Economy: Why AI’s Next Big Market May Be Human Work, Not Tokens The first wave of AI was measured in tokens. The next wave may be measured in tasks: expert judgment, workflow completion, labelled data, compliance, payouts and human-in-the-loop quality control. For Israeli founders, this is not just another freelance marketplace. It is a new AI supply chain. Read article

Every founder eventually looks for the exit sign For venture-backed startups, the path usually ends in one of three ways: IPO, acquisition or shutdown. But most acquisitions are not simple “success stories” or “failures.” They are a mix of timing, strategic fit, market consolidation, talent, leverage and preparation. Read article

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Chart of the week

Israel just ranked #1 in the world for AI-native startups. According to a new AWS study of 3,400+ founders across 20 countries, 31% of Israeli startups founded in the past five years are AI-native: ahead of the US (30%), France and Japan (28%) (source)