VC Survey 2026
“Liquidity is returning, but in a disciplined way”
Valley National Bank’s Yaron Ben-Horin joins CTech to discuss liquidity, capital flows, and where the next growth engines are forming, as part of the VC Survey 2026: The Next Leap.
Yaron Ben-Horin
(Video: Orel Cohen)
“Liquidity is returning, but in a disciplined way,” says Yaron Ben-Horin of Valley National Bank. He says the pattern that emerged in 2025, in which capital concentrated around companies and fund managers demonstrating execution, fundamentals, and durability, is set to continue into 2026. IPOs may reopen for a narrow group of top-tier companies, but for most Israeli tech firms, “M&A will remain the dominant liquidity path.”
Following the turbulence of recent years and the stabilization of 2025, the Israeli tech ecosystem is entering a new era: The Next Leap. Ben-Horin joined CTech to share insights for its VC Survey 2026, which invites prominent investors and financial institutions to discuss the topics, trends, and “leaps” expected in the year ahead.
Ben-Horin says cybersecurity remains a core strength of Israeli tech, while recent capital flows point increasingly toward AI and data infrastructure as the next major growth engine. At the same time, he argues that the traditional VC model alone is not sufficient for capital-intensive deep tech, noting that “the ecosystem is evolving toward hybrid capital structures that better support longer development cycles.” Looking ahead, Ben-Horin believes “the convergence of AI, infrastructure, and security will likely define the next decade.”
You can read the entire interview below:
Fund ID
Company name: Valley National Bank
Names of founders: Public Company
Year of founding: 1927
Number of employees: 4,000
Office locations: Across the U.S., with headquarters in New Jersey
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 primary liquidity event?
Based on what we saw in 2025 in the U.S. market, liquidity is returning, but in a disciplined way. Exit activity increased materially, driven primarily by M&A, while IPOs remained selective and limited to top-tier companies. Looking into 2026, I expect that pattern to continue: IPOs will be possible, but only for companies with scale, predictability, and strong governance. For most Israeli tech companies, M&A will remain the dominant liquidity path.
The Global Leap: How is the ‘Israeli Tech’ asset class being positioned to global LPs in 2026? Are we moving from ‘Innovation’ to ‘Extreme Resilience’?
I don’t see this as a shift away from innovation. What global LPs are responding to is innovation with discipline. In 2025, capital concentrated around companies and fund managers that demonstrated execution, fundamentals, and durability. Israeli tech is increasingly positioned not just as innovative, but as consistently performing in complex environments, and that combination resonates strongly with global investors.
The Deep Tech Leap: With the growing focus on hardware-heavy sectors, is the Israeli VC model adapted to fund high-CAPEX ventures?
The traditional VC model alone isn’t sufficient for capital-intensive deep tech. What we saw in 2025 was the growth of complementary funding structures — venture debt, private credit, and increased involvement of strategic and institutional capital. Rather than replacing VC, the ecosystem is evolving toward hybrid capital structures that better support longer development cycles.
The Efficiency Leap: In the era of AI-driven productivity, is the correlation between headcount growth and company success permanently broken?
Yes. One of the clearest signals from 2025 is that investors stopped rewarding headcount growth and started rewarding efficiency. The focus shifted to productivity, unit economics, and disciplined execution. AI accelerates this trend, but the underlying shift is structural – growth is now measured by output and resilience, not by team size.
The Next Engine: Cybersecurity has been Israel’s primary export engine for a decade. Which domain is best positioned to lead by 2030?
Cybersecurity remains a core strength, but capital flows in 2025 clearly point to AI and data infrastructure as the next major growth engine. These are foundational technologies attracting a significant share of U.S. investment. Looking ahead, the convergence of AI, infrastructure, and security will likely define the next decade.
