MerageNext opens as early-stage funding tightens in Israel

Registration is now open for MerageNext, a California-linked startup program offering grants, mentoring, and Microsoft for Startups support as Israeli early-stage founders face tougher fundraising conditions. The program comes as new data shows high-tech fundraising rebounding in 2026, but capital is concentrating in fewer rounds and early-stage companies are getting less.

Why it matters: - Israeli startups raised about $7.6 billion in the first half of 2026, but early-stage companies saw funding fall by roughly 50%. - The gap means fewer first-time founders are getting the capital needed to move from product to market. - MerageNext is designed to help early-stage ventures build traction, meet investors and access U.S. market connections.

What happened: - Registration opened for MerageNext, a program led by the Merage Institute with Microsoft for Startups and Israel’s Ministry of Economy Growth Administration. - The program will select 10 ventures. - Each selected venture will receive a $10,000 grant and join the Innovation Bridge program in California, valued at about $30,000. - The top three ventures will receive cloud credits worth up to $150,000. - Registration closes on Aug. 16.

The details: - MerageNext includes business guidance, mentoring, investor pitch preparation and access to executives, investors and business partners in Israel and the U.S. - The California program includes meetings with investors, senior executives and market experts. - The program has run for 12 cohorts and says alumni have gone on to raise capital, secure regulatory progress, advance clinical trials and expand internationally. - Past alumni include NeuroTrigger, which developed an eye pacemaker for people who have lost the ability to blink. - Maolac completed an $11 million funding round and signed international commercial partnerships. - Append Medical developed medical technology for stroke prevention. - The program is open to ventures that have raised no more than $1 million. - Eligible fields include artificial intelligence, cybersecurity, digital health, climate, FinTech, FoodTech, AgriTech and mobility.

Between the lines: - The startup profile is shifting. Program leaders said more founders are arriving with prototypes, existing users and sometimes paying customers, rather than just an idea. - AI is also changing. The program leaders described artificial intelligence as an infrastructure layer embedded inside vertical products, not just a standalone category. - Michelle Merage said the program gives founders an early advantage by connecting them to advanced technologies, experts and a global ecosystem. - Yishay Aizik said Israel’s challenge is not only raising capital, but making sure a new generation of entrepreneurs still emerges.

What's next: - MerageNext will move through its selection process and start the next cohort after the Aug. 16 deadline. - Selected ventures will use the program to pursue funding, product growth and U.S. market entry. - The longer-term test will be whether more startups can secure their first round of capital in a tighter market.

The bottom line: - Israel’s startup engine is still producing companies with real products, but early-stage funding remains the bottleneck.