VC Survey 2026
“Israel has yet to prove that it can build defense-tech startups into a sustainable industry”
Angular Ventures founding partner Gil Dibner joined CTech for its 2026 VC Survey.
“Personally, I think Israel has yet to prove that it can build defense-tech startups into a sustainable industry beyond a few exceptions,” said Angular Ventures founding partner Gil Dibner.
“Beyond the hyped-up areas of cyber (in Israel) and AI (everywhere else), I think the technology industry is truly in uncharted territory so it's very difficult to make sector-wide predictions. Entrepreneurship is a business of specifics, not generalizations,” he added.
“One area where we have been very excited to see innovation is energy and propulsion technology, and much of that draws significant inspiration and engineering capabilities from defense innovation. Israel can be a leader in that field.”
Following the turbulence of recent years and the stabilization of 2025, the Israeli tech ecosystem is entering a new era: The Next Leap. Dibner joined CTech to share insights for its VC Survey 2026.
You can read the entire interview below.
Fund ID
Fund Name: Angular Ventures
Total Assets Under Management: $300M
Partners/Managers: Gil Dibner, David Peterson
Notable Portfolio Companies: Groundcover, Reco, Firebolt, FalkorDB, Specific, Dataflint
Notable Exits: Vault, Aspecto, Forward Software, Planable
The Liquidity Leap: After a period defined by cash preservation, will 2026 see the reopening of the IPO window for Israeli tech, or will M&A remain the sole viable liquidity event?
The IPO window remains largely closed and will remain largely closely for the vast majority of companies. Strategic M&A and PE-backed M&A will be important exit routes for the majority of companies - including some of the very best. Profitability may also be an emerging possibility that was previously overlooked.
The Valuation Leap: Moving past the market correction, what is the single most critical metric (e.g., EBITDA, NRR) that will drive premium valuations in 2026?
Revenue per employee is going to be a crucial metric because it captures the ability of AI-native companies to build very efficient engineering and sales operations. The AI revolution has exposed the massive inefficiencies of the previous generation of software - and a correction is coming.
The Agentic Leap: As we transition from 'Copilots' to autonomous 'Agents,' which specific vertical will be the first to fully trust AI with independent decision-making?
I don’t think this is going to be determined by the vertical. Instead, it’s going to be determined by the ability of software vendors to provide tooling that provides adequate guardrails that customers trust and understand. This is exactly why we invested in companies like FalkorDB and SpecificAI - they will enable software vendors to deliver on the promise of reliable enterprise-grade AI.
The Contrarian Leap: What is one sector or trend currently ignored by the herd that you believe represents the most undervalued opportunity for the coming year?
AI-powered software for SMBs is going to be a massive opportunity for disruption and value-creation, and Israeli startups can play a significant role there.
Finally, name 2-3 startups that, in your opinion, are likely to make a leap forward this year.
FalkorDB (portfolio) - A leading graph database.
Medida (portfolio) - Incredible traction in an unlikely industry (AI for home remodelling).
