There is an Israeli blog in English written by Orli Yakuel named Go2Web2.

While not exclusively covering Israeli start-ups, Orli does cover quite a lot of Israeli start-ups, mainly in the Web 2.0 area (I guess being Israeli and living in Israel probably helps that ).

In any case, she has a good coverage of Israeli start-ups and she even had an article about Israeli start-ups in the web 2.0 arena on one of Israel's largest daily papers (Yediot Achronot) on its online version called YNet.