Capital New Era secures $120 million for its third fund closure
In the heart of the Middle East, Israeli tech is gearing up for a new chapter of growth. With a strong conviction that the region will emerge stronger than ever, New Era Capital Partners has finalized its third fund, worth a substantial $120 million.
Gideon Argov, Co-Founder and Managing Partner at New Era, stated that this fund raising reflects a strong vote of confidence from investors in the Israeli economy and its innovation ecosystem. The fund aligns with New Era's strategy of high-conviction investing and strong support for selected companies.
The Israeli market currently offers extraordinary opportunities for technological acceleration, particularly in generative AI, autonomy, and real-world applications across industries such as cybersecurity, healthcare, finance, and infrastructure.
New Era targets technology companies with early revenues, solid product-market fit, and global potential. The fund will enable New Era to continue identifying exceptional founders, help them build global companies, and connect them to their extensive business network in Israel and abroad.
Cybersecurity continues to be a key growth engine for the Israeli tech ecosystem. In an era of increasingly sophisticated threats, Israel offers unmatched cyber talent, with many founders bringing direct operational experience in protecting strategic assets at a national level. Specialised Israeli VC firms like YL Ventures have earned top global accolades for their focus on Israeli cybersecurity innovation.
The Israeli AI ecosystem is broad and diverse, covering everything from AI infrastructure to application layers, with startups excelling in both B2B and B2C domains. Generative AI is a particularly fast-growing area, with a recent mapping identifying 342 Israeli generative AI startups that have collectively raised over $20 billion.
Current trends in Israeli venture capital show a strong focus on AI-based startups across key sectors such as cybersecurity, enterprise software, fintech, and smart mobility. This focus is reflected in the impressive $9.3 billion raised by Israeli startups in H1 2025, marking the strongest half-year since 2022.
Despite regional uncertainties, the Israeli tech market remains resilient, with strong stock market performance and ongoing investor interest, suggesting sustained momentum for venture investments in innovative technologies.
Ziv Conen, Managing Partner at New Era, also highlights the significance of Israel's cyber talent in the tech ecosystem. Ran Simha, Co-Founder and Managing Partner, emphasizes the critical importance of innovation in detection, defense, and rapid response in the cyber domain.
New Era has already invested in over 35 companies, including Papaya Global and Optibus. With the new fund, they aim to continue their successful track record, consistently ranking in the top quartile among peers.
As we move into 2026, it's clear that the Israeli tech market is poised for continued growth, driven by robust venture capital investment in AI startups, particularly in generative AI, cybersecurity, and enterprise applications. This blend of concentrated capital among top funds and strategic opportunities for smaller or contrarian investors seizing early-stage AI innovations at the edges promises an exciting future for the Israeli tech ecosystem.
[1] Source: TechCrunch [2] Source: Pitango First [3] Source: Globes [4] Source: YL Ventures [5] Source: Israel21c
Investing in the new fund by New Era Capital Partners, valued at $120 million, showcases the confidence of investors in the Israeli technology sector, particularly in areas such as cybersecurity, finance, and technology. Recognizing the extraordinary opportunities for technological acceleration in generative AI, autonomy, and real-world applications across industries, New Era aims to continue identifying exceptional founders and help them build global companies, especially in the cybersecurity domain.
