Tal Melenboim

5 Israeli Startups to Watch Ahead of 2026

Meet the teams driving Israel’s next tech leap. Photo: Pixabay | credit: edu_castro27.

As 2026 comes into view, Israel’s startup ecosystem is still rewriting the code of innovation. Dubbed the “Startup Nation,” Israel consistently spawns more cutting-edge startups per capita than the rest of the world. And while global names like Waze, Mobileye, and Monday.com set the stage, a new wave of startups is launching technologies that could transform industries.

In this spotlight, we’ll meet four Israeli startups that are riding the next tech wave and helping to shape it, too. From real-time AI that transforms video into immersive digital worlds, to fashion-forward AI tackling climate change, to ad tech reimagining Connected TV, these companies are pushing the boundaries of what technology can do.

So, here are the startups making it happen.

Base44: AI-powered no-code app builder

Base44 is flipping the script on traditional coding. Launched in 2025 by 31-year-old Maor Shlomo, this AI-powered platform lets anyone transform a simple text prompt into a fully functional web app or game without touching a line of code.

Image source: Base44

Within months, Base44 had over 100,000 users and partnerships with Israeli tech leaders like eToro and Similarweb, showing that a one-person startup with a smart idea can make a splash.

Here’s what makes Base44 stand out:

  • Natural language app creation: Describe it in plain English, and AI builds the app, UI, and backend.
  • Built-in backend: Databases, authentication, analytics, and storage are all handled – no extra integrations needed.
  • AI-powered refinement: Conversational AI tweaks apps, while a drag-and-drop editor fine-tunes layout and functionality.
  • One-click deployment: Publish your app instantly, with Base44 managing hosting and deployment.
  • Apps for anything: Whether it’s a personal tool, a customer portal, a back-office dashboard, or an enterprise-level product, Base44 brings ideas to life in minutes.

Despite its small team and no outside funding, Base44 hit the spotlight in 2025 with an $80 million Wix acquisition, leading the “vibe coding” movement where ideas become AI-driven apps in minutes. At its heart, the startup fuels the “vibe coding” trend, turning ideas into AI-powered apps almost instantly.

Decart: AI that transforms live video

Decart is bringing live video into the future. Founded in 2023, this Israeli startup can instantly restyle streams, webcam feeds, and gameplay with AI, transforming each frame on the fly.

Image source: Decart

In August 2025, Decart snagged $100 million in Series B funding at a $3.1 billion valuation, becoming Israel’s first “AI unicorn”, with Sequoia, Benchmark, Zeev, and Aleph VC on board.

What gives Decart its edge:

  • Real-time transformation: Mirage can turn live footage into entirely new visuals with near-zero latency.
  • Interactive worlds: Oasis lets users craft playable AI-generated game environments on the fly.
  • Efficient and cost-effective: GPU optimizations keep video production under 25 cents per hour.
  • Dynamic personalization: Creators and brands can tailor live content for every viewer.
  • Future-ready tools: Continuous upgrades to 4K/Full HD and robust Mirage APIs ensure Decart stays ahead of the curve.

CEO Dean Leitersdorf is leading the charge with the brave vision to build a platform that could “replace, not integrate with” major streaming and social apps. He is working to turn his vision for video into reality, one frame at a time.

VFR: Smarter ads for the connected screen

VFR is rewriting the rules of Connected TV ads, making them sharper, smarter, and a lot easier on the eyes. Rather than dragging viewers through endless ad breaks, VFR’s dynamic ad player slips in where it makes sense (during a pause, as a subtle overlay, or even on a home screen), always keeping the content center stage.

Image source: VFR.ai

With integrations across more than 150 platforms and millions of daily impressions, it’s already one of the leading CTV publishers in the US. In 2025, VFR secured $10 million at a $150 million valuation, cementing its spot as one of the fastest-rising stars in CTV adtech.

What sets VFR apart:

  • Dynamic ad formats: Overlays, pause-time, and full-screen placements that adapt without interrupting the show.
  • Programmatic precision: Powered by real-time user data, ads feel relevant and timely, not random.
  • Creator-friendly tools: VFR helps brands and creators launch Roku or Amazon channels, bringing new voices to the biggest screen in the house.
  • Scalable performance: With over 300 channels and millions of sessions per month, VFR delivers reach without sacrificing user experience.

I have been a part of VFR’s journey ever since inception. With decades of experience in AI and adtech, my mission has always been to create ads that blend into the viewing experience, never disrupt it.

Styletech: AI-driven fashion for the future

Styletech is stitching together AI and fashion, letting fashion brands craft, showcase, and expand their digital presence in style. This AI-powered platform makes a single image runway-ready in seconds. Brands can mix and match looks, models, and campaigns at the click of a button, all while cutting both costs and complexity.

Image source: StyleTech

In 2025, Styletech took first place in the Climate Solutions competition and teamed up with top global fashion brands, proving that sustainability and style can go hand in hand.

What gives Styletech its sparkle:

  • AI-powered content creation: Turn any image or video into multiple high-impact visuals with custom models and immersive experiences.
  • Scalable and sustainable production: Streamline e-commerce content while reducing returns, shipping, and overall waste.
  • Custom solutions: Showcase diversity and tell your unique story across digital channels to boost engagement and conversions.
  • E-commerce optimization: Blend artistic vision with AI to refine campaigns in real-time and produce top-quality content at a lower cost.

I’ve always been drawn to ambitious projects. I see Styletech as the perfect runway to bringing together tech, creativity, and sustainability.

Prompt Security: AI protection built for the enterprise age

Prompt Security didn’t just join the security crowd. It built the firewall enterprises needed to keep generative AI safe and under control. In 2023, cybersecurity veterans Itamar Golan and Lior Drihem set out from Tel Aviv to build a platform that provided companies with what they lacked most in AI: real-time protection, clear oversight, and governance that actually works.

Image source: Prompt Security

That early insight paid off fast. In August 2025, SentinelOne acquired the company for $250–300 million. With only $23 million raised and a 50-person team, Prompt Security became one of the year’s standout exits.

The edge that made Prompt Security a must-have:

  • Shadow AI protection: Keeps an eye on every AI tool, spotting risky apps, rogue users, and sneaky adoption.
  • Data privacy and threat defense: Redacts sensitive info like PII and IP while zapping prompt injections, jailbreaking, and data-snatching attempts.
  • Policy, compliance, and employee awareness: Lets IT set smart rules by team or user, with gentle in-app nudges to keep everyone using AI safely.
  • Content moderation: Stops AI from spitting out toxic, harmful, or plain bizarre responses.
  • LLM-agnostic: Plays well with every AI tool, from Copilot to custom-built models.

From spotting risks to guiding users, Prompt Security handled it all, keeping AI in check and proving it is a strong contender in AI security.

Why these startups matter for 2026

These startups go beyond flashy tech. They are redefining how we see, interact with, and create digital experiences. From AI-driven fashion and smarter CTV ads to live video that morphs in real time, each one is breaking new ground. 

Looking toward 2026, keeping an eye on innovators like the abovementioned startups is a must-have for anyone who is curious about the future of creativity, AI, media, and technology.

**

Disclaimer: Tal Melenboim is the founder and chairman of VFR and StyleTech among other companies, guiding innovation and growth across both startups. Connect with Tal on LinkedIn.
About the Author
Tal is a serial entrepreneur and technologist with over two decades of experience founding, leading, and investing in high-growth technology ventures.
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