Two years after the Oct. 7 attack, Israel’s innovation economy remains resilient. That is remarkable considering the profound disruption, tens of thousands of skilled professionals called into reserve duty and increased investor caution. But survival is not the same as renewal. The deeper challenge is that an economy powered by a single engine, no matter how strong, cannot carry an entire nation indefinitely.

Israeli tech pushed forward under fire. In the first half of 2025, the sector raised $9.5 billion across 367 funding rounds, up 58% over the previous half-year. Mega-rounds accounted for $4.7 billion across 13 deals, while mergers and acquisitions surged to $38.9 billion across 60 transactions, the strongest half-year ever recorded. Google’s $32-billion purchase of Wiz marked the largest exit in Israel’s history. This sent a message: the world continues to view Israel as a hub of talent and ingenuity even in times of crisis. Behind the figures were entrepreneurs pitching investors while on reserve duty, investors making commitments from bomb shelters and teams scattered across continents keeping companies alive through late-night calls and improvised solutions. The statistics are impressive, but the determination behind them is what truly defines this moment for Israeli tech. But it will not be enough.

Israel’s high-tech sector expanded its........

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