
Fintech sector to continue recovery in 2026, Israeli venture firm says

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The global fintech sector is expected to continue its recovery in 2026, following a significant rebound in 2025, according to Viola Ventures. The report highlights a shift towards stronger founders and more sustainable business models, with Israeli fintech companies poised to excel. In 2025, Israeli fintech raised approximately $1.4 billion, while M&A activity surged to $5.8 billion. Viola emphasizes a transition to a more disciplined ecosystem, supported by a recent $250 million capital raise for new funds targeting Israeli startups. Fintech represents 10% of Israel's tech workforce and includes 13 unicorns.

