VC Survey 2026
“Basic AI capabilities have become a commodity, so the most significant opportunity has shifted toward Vertical AI”
Dell Tech Capital’s Managing Director Yair Snir and Partner Barrel Kfir, joined CTech for its 2026 VC Survey.
“We are identifying a strong resurgence of Deep Tech, specifically in fields such as Space Tech. These are domains where barriers to entry are built upon complex engineering and the laws of physics, sectors where it is significantly harder for AI to drive major disruption without a profound technological foundation,” said Dell Tech Capital’s managing director Yair Snir and partner Barrel Kfir, when asked to highlight one sector currently ignored by the herd that represents the most undervalued opportunity for the coming year.
“Furthermore, in a world where basic AI capabilities have become a commodity, the most significant opportunity has shifted toward Vertical AI, solutions that integrate deep AI customized for the complex needs and unique datasets of specific industries. Ultimately, long-term strategic value is found where technology is deeply embedded within a domain, providing solutions that are nearly impossible to replicate without dedicated expertise,” they said.
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Dell Tech Capital’s Managing Director Yair Snir (Left) and Partner Barrel Kfir (Right).
(Photo: Rami Zarnegar)
Following the turbulence of recent years and the stabilization of 2025, the Israeli tech ecosystem is entering a new era: The Next Leap. Snir and Kfir joined CTech to share insights for its VC Survey 2026.
You can read the entire interview below.
Fund ID
Fund Name: Dell Technologies Capital
Total Assets Under Management: N/A. (DTC invests approximately $150-200M per year, globally.)
Partners/Managers: Scott Darling (President), Yair Snir, Barrel Kfir
Notable Portfolio Companies: VAST Data, AAI, Redis, Terra Security, Netskope, Cymulate, Quantum Source
Notable Exits: JFrog (IPO), Zscaler (IPO), Adallom (acquired by Microsoft), Guardicore (acquired by Akamai), Twistlock (acquired by Palo Alto Networks), and Lightspin (acquired by Cisco)
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?
After nearly three years of stagnation in the IPO market, the second half of 2025 signaled a clear trend shift. Listings by companies such as Via and eToro serve as a strong indication that the IPO window has reopened for Israeli tech. In 2026, we expect this momentum to continue, fueled by a robust pipeline of mature companies that have built efficient economic models and are waiting for optimal market conditions. We estimate that Israeli companies will account for approximately 10% of significant tech IPOs in the coming year, including the return of Mega-IPOs.
Parallel to the IPO resurgence, M&A activity is expected to remain highly active. The combination of substantial dry powder held by acquirers and the strategic necessity for global corporations to secure advanced AI and cybersecurity solutions is driving high demand for Israeli technology. The massive deals we witnessed in 2025, such as Wiz and CyberArk, illustrate how the local cybersecurity industry has become a unique global phenomenon.
The cyber sector, which represents a significant portion of the local ecosystem, is built on a rich history of strategic acquisitions. The exceptional reputation and trust earned by Israeli entrepreneurs in the international market will continue to drive high-value M&A transactions.
In addition to traditional strategic acquisitions by tech giants, we are witnessing an accelerating trend of Israeli companies being acquired by Private Equity funds. Recent transactions, such as those involving Papaya Global and AppsFlyer, demonstrate how the PE channel allows mature companies to continue their growth trajectory and enjoy significant liquidity without having to wait for an IPO window.
In 2026, we will see a dual-track reality, the public market will once again become a viable and significant option for Israeli growth companies, while the M&A arm continues to operate at high intensity. These two paths will coexist, reflecting the maturity and resilience of the Israeli tech ecosystem.
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?
After several years where the market focused almost exclusively on profitability and capital efficiency, the pendulum is swinging back. In 2026, Growth has once again become the decisive metric for premium valuations, particularly in high-velocity sectors like AI and Cybersecurity.
We see certain parallels to the 2021 peak, but with a much higher level of market maturity. In domains where technology evolves at breakneck speed, the ability to capture market share and establish category dominance is more critical than any other metric. For trailblazing companies in AI and advanced cyber infrastructure, aggressive growth is the ultimate validator of product value and Product-Market Fit.
While traditional metrics like EBITDA or NRR remain relevant for legacy industries, the private market of 2026 rewards Top-line Growth above all else. Investors are seeking companies capable of rapid acceleration and category leadership. Ultimately, in such a fast-moving landscape, while efficiency is important, massive and focused growth is the key to unlocking premium valuations.
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?
The transition from Copilots to autonomous Agents requires environments with high-fidelity feedback loops. This is why Software Development (Coding Agents) and Customer Support are the first verticals to grant AI full decision-making autonomy.
In Software Engineering, we have evolved beyond simple code completion to autonomous 'AI Engineers.' These agents can ingest a task, plan the architecture, write the code, run tests, and self-correct until the task is complete. Trust is established here because the feedback is objective: if the code compiles and passes tests, the agent has succeeded.
In Customer Support, we are seeing a shift from 'answering bots' to 'action-oriented agents.' By 2026, AI agents are increasingly entrusted with end-to-end execution—issuing refunds, updating databases, and troubleshooting complex technical issues without human intervention. The ability of these systems to operate within strict guardrails while understanding emotional context makes them more efficient and reliable than traditional models. These sectors represent the frontline of the 'Agentic Leap' because the ROI is both immediate and highly measurable.
The Dual-Use Leap: Israel has mastered Defense Tech. Which civilian industry (e.g., Construction, Agri, Logistics) will see the biggest disruption from adapting these battle-tested technologies?
The two sectors we identify are Logistics and Robotics. In Logistics, the integration of advanced technologies is fundamentally transforming the global supply chain. Simultaneously, the broader Robotics industry is undergoing a revolution, utilizing technologies that make robotic systems significantly more accessible and reliable for diverse civilian applications. The ability of robotic systems to operate independently and precisely in complex environments is no longer just a vision; it is a reality reshaping the industry. The maturity of these solutions enables a shift from operating in 'sterile' environments to full autonomous activity in the real world.
Finally, name 2-3 startups that, in your opinion, are likely to make a leap forward this year.
lakeFS (by Treeverse) (portfolio) - As AI capabilities become commoditized, the ability to manage data versions with Git-like precision has become a top-tier strategic asset. By ensuring data quality, reproducibility, and reliability at a petabyte scale, lakeFS is poised to become an indispensable layer of the modern AI infrastructure stack.
Terra Security (portfolio) - Terra utilizes a "swarm" of AI agents to conduct continuous and highly accurate penetration testing. Terra’s platform provides dynamic, battle-tested defense, replacing slow manual processes with an autonomous, intelligent solution while maintaining crucial human-in-the-loop oversight.
