VC Survey 2026
“Foreign LPs who have waited on the sidelines are returning with increased appetite for Israeli tech”
Qumra Capital Partner Boaz Morris joins CTech as part of the VC Survey 2026: The Next Leap, offering his outlook on the rebranding of the Israeli asset class, the high-bar liquidity environment, and the high-CAPEX ventures driving the next decade for Startup Nation.
“As geopolitical stability returns to the region, many foreign LPs who have waited on the sidelines are returning with increased appetite for Israeli tech,” says Boaz Morris, Partner at Qumra Capital. According to Morris, a defining characteristic of Israel’s tech sector in recent years is its move “beyond the 'lean software' archetype, demonstrating the capital depth and conviction required to anchor heavy-CAPEX ventures.”
Following the turbulence of recent years and the stabilization of 2025, the Israeli tech ecosystem is entering a new era: The Next Leap. Morris joined CTech to share insights for its VC Survey 2026, which invites prominent investors to discuss the topics, trends, and “leaps” expected in the year ahead.
Looking ahead, Morris argues that while Cyber will likely remain a mainstay as Israel’s top sector, “we are seeing investments in AI Application and vertical AI very closely trailing cyber.” Meanwhile, as AI redefines the reliability of headcount as a growth metric, he says, “the 'traditional' correlation is being redefined as agents and automation make teams significantly more efficient.”
You can read the entire interview below:
Fund ID
Name of Fund: Qumra Capital
Total Assets Under Management (AUM): $1B
Partners/Managers: Erez Shachar, Boaz Dinte, Sharon Barzik Cohen, Boaz Morris, Reut Yehuda Golan, Omri Strul
Notable Portfolio Companies (Active): Connecteam, Appsflyer, Minute Media, Nexar, Agora Real, Buildots, Simply, At Bay, Datarails
Notable Exits: JFrog, Fiverr, Riskified
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 window for IPOs is open; however, the bar remains very high, and public markets demand scale, strong growth, and a story that transcends market volatility. Therefore, while we will see more companies begin to lay the groundwork for an IPO, M&A will remain the primary exit path for most companies. Notably, the buyer pool is diversifying; beyond the traditional tech giants looking for tech and talent, we are seeing Private Equity firms aggressively enter the Israeli landscape, attracted by deep technology and improving operational efficiency.
The Global Leap: How is the 'Israeli Tech' asset class being rebranded to global LPs in 2026? Are we shifting the narrative from 'Innovation' to 'Extreme Resilience'?
As geopolitical stability returns to the region, many foreign LPs who have waited on the sidelines are returning with increased appetite for Israeli tech. The clear throughline is that Israel is an undeniable leader in Cyber and, increasingly, AI (from the infra layer to the application layer). When global allocators think about where they need to focus, Israel is naturally a top choice and the world's hunger for innovation means that even should uncertainty return, Israel will continue to attract significant interest.
The Deep Tech Leap: With the rising focus on hardware-heavy sectors (Defense, Climate, Quantum), is the Israeli VC model adapted to fund high-CAPEX ventures?
The recent surge in mega-rounds across defence, quantum, and industrial verticals, such as construction tech, underscores a fundamental evolution in the Israeli ecosystem. We have moved beyond the 'lean software' archetype, demonstrating the capital depth and conviction required to anchor heavy-CAPEX ventures. This shift is bolstered by an expanding domestic capital stack, as Israeli institutional investors increasingly provide the necessary firepower to lead and augment these substantial rounds. Moreover, there is investor appetite toward ventures with longer R&D cycles, reflecting a broader commitment to building foundational, multi-decade companies.
The Efficiency Leap: In the era of AI-driven hyper-productivity, is the traditional correlation between 'Headcount Growth' and 'Company Success' permanently broken?
The answer is "it depends". While some AI startups are demonstrating the ability to scale with a significantly smaller operational footprint, for enterprise-facing companies, the demands of high-touch sales cycles and compliance-heavy architectures still require specialized, mid-to-large scale teams. That said, the 'traditional' correlation is being redefined as agents and automation make teams significantly more efficient.
The Next Engine: Cybersecurity has been Israel's primary export engine for a decade. Which domain is best positioned to take the lead by 2030?
Cybersecurity will most likely remain Israel's top sector, both in the number of companies funded as well as in absolute dollars invested. For graduates of the IDF, cyber remains the natural choice for those who wish to harness what they learned and given the high level of M&A in the space – many founders are attracted to what seems 'tried and true'. However, we are seeing investments in AI Application and vertical AI very closely trailing cyber. Right now is an exciting time where there is so much 'blank space' on the AI map and there is much more room for creativity and that excites entrepreneurs and draws them to the space.
Finally, what are 2-3 startups that, in your opinion, are likely to make a leap forward in 2026?
1. Qodo: While 2025 marked the explosion of AI-driven code generation, it also introduced critical challenges regarding code integrity and SDLC bottlenecks. Qodo addresses this shift with a comprehensive code-quality platform designed for enterprises. By leveraging a deep understanding of business-specific context, Qodo provides automated, tailored code reviews that ensure high standards without sacrificing speed or quality. As enterprises demand greater visibility and control over AI-assisted workflows, Qodo is positioned at the forefront of this emerging market.
2. Buildots (Qumra portfolio company): Buildots is revolutionizing the $12 trillion construction industry by providing AI-powered visibility into the construction process. Their platform uses computer vision to track every installation on-site, providing real-time data that ensures projects stay on time and on budget. In an industry traditionally slow to digitize, Buildots is seeing rapid global adoption as the essential tool for modern project management and transparency. This level of oversight is particularly vital for mission-critical infrastructure, including data centers, semiconductor fabrication plants, healthcare facilities, and large-scale industrial projects where precision is non-negotiable.
