Blab AI
Israeli Startups Raise Over $3 B in June, Fueling AI-Focused Investment Surge
June’s fundraising boom in Israel eclipsed recent highs, with more than $3 billion poured into 25+ rounds across the country’s tech ecosystem. The surge—one of the strongest in recent years—was driven almost entirely by firms building the infrastructure, security, and applications that underpin rapid AI adoption.
The pattern is unmistakable: nearly every headline round involved a company focused on AI infrastructure, enterprise software, cybersecurity, developer tools, or automation platforms. That concentration reflects the sector’s status as the prevailing investment theme within Israel’s technology scene.
The largest transaction was a Series E for measurement platform AppsFlyer, which raised $1 billion from Google, Meta, Unity, and Moloco at a $2.7 billion post‑money valuation. The capital will expand its AI‑powered analytics suite.
Cybersecurity firm Cyera followed with a $600 million round that quadrupled its valuation to $12 billion in 18 months. Networking company DriveNets secured $410 million at an $8.5 billion valuation, citing accelerated demand for AI infrastructure and reporting a backlog exceeding $1 billion.
Other mature players completed sizable financings. Observability platform Coralogix raised $200 million at a $1.6 billion valuation as AI‑generated telemetry increased demand for its software. Liquid‑cooling specialist ZutaCore secured $100 million from strategic investors—including Samsung, Mitsubishi Electric, and Carrier—to support AI data‑center infrastructure. Networking startup Rylo raised $85 million at a $500 million valuation after reaching early profitability.
Cybersecurity remained a strong focus. NewCore, emerging from stealth, raised $66 million to build identity security for the AI era. PointFive secured $60 million to address rising infrastructure costs associated with enterprise AI. A Security raised $37 million to develop AI agents that detect and block autonomous cyberattacks. Aryon Security raised $25 million to rethink cloud security, while Offroad and Tenet raised $7 million and $6 million respectively to automate identity protection and secure autonomous AI agents.
Enterprise AI and automation also attracted significant investor attention. Limitless Labs raised $20 million to automate manufacturing workflows. Lama AI secured $12 million to bring AI agents into banking. Jedify raised $24 million to build a context layer for enterprise AI, and Upriver raised $10 million to develop AI agents capable of autonomously managing enterprise data.
Developer tools were another major investment theme. Baz, founded by former Bridgecrew founder Guy Eisenkot, raised an additional $9 million—bringing its total funding to $17 million—and introduced a planning platform designed to prevent software bugs and security vulnerabilities before code is written. Arato, founded by entrepreneurs who previously sold a startup to Fiverr, raised a $10 million seed round to help companies test AI‑driven applications by simulating user behavior.
AI’s reach extended beyond enterprise software. Honeycomb raised $40 million to expand its AI‑driven insurance platform. Centrical secured $39 million after repositioning its business to help organizations manage both human employees and AI agents. Willow raised $7 million to develop governance software for enterprise AI deployments. Kimba collected $6.5 million to combine AI with personalized scent therapy to improve sleep, while Shifters raised $10.2 million to build autonomous battlefield robots for high‑risk environments.
The June funding wave illustrates a sustained investor focus on AI‑enabled technology across Israel’s startup landscape. The capital raised will support the scaling of measurement platforms, cybersecurity solutions, networking infrastructure, and a range of AI applications that span enterprise automation, developer tooling, and niche markets. As AI adoption continues to accelerate, the sector is likely to see further rounds, product launches, and strategic partnerships in the coming months.
The pattern is unmistakable: nearly every headline round involved a company focused on AI infrastructure, enterprise software, cybersecurity, developer tools, or automation platforms. That concentration reflects the sector’s status as the prevailing investment theme within Israel’s technology scene.
The largest transaction was a Series E for measurement platform AppsFlyer, which raised $1 billion from Google, Meta, Unity, and Moloco at a $2.7 billion post‑money valuation. The capital will expand its AI‑powered analytics suite.
Cybersecurity firm Cyera followed with a $600 million round that quadrupled its valuation to $12 billion in 18 months. Networking company DriveNets secured $410 million at an $8.5 billion valuation, citing accelerated demand for AI infrastructure and reporting a backlog exceeding $1 billion.
Other mature players completed sizable financings. Observability platform Coralogix raised $200 million at a $1.6 billion valuation as AI‑generated telemetry increased demand for its software. Liquid‑cooling specialist ZutaCore secured $100 million from strategic investors—including Samsung, Mitsubishi Electric, and Carrier—to support AI data‑center infrastructure. Networking startup Rylo raised $85 million at a $500 million valuation after reaching early profitability.
Cybersecurity remained a strong focus. NewCore, emerging from stealth, raised $66 million to build identity security for the AI era. PointFive secured $60 million to address rising infrastructure costs associated with enterprise AI. A Security raised $37 million to develop AI agents that detect and block autonomous cyberattacks. Aryon Security raised $25 million to rethink cloud security, while Offroad and Tenet raised $7 million and $6 million respectively to automate identity protection and secure autonomous AI agents.
Enterprise AI and automation also attracted significant investor attention. Limitless Labs raised $20 million to automate manufacturing workflows. Lama AI secured $12 million to bring AI agents into banking. Jedify raised $24 million to build a context layer for enterprise AI, and Upriver raised $10 million to develop AI agents capable of autonomously managing enterprise data.
Developer tools were another major investment theme. Baz, founded by former Bridgecrew founder Guy Eisenkot, raised an additional $9 million—bringing its total funding to $17 million—and introduced a planning platform designed to prevent software bugs and security vulnerabilities before code is written. Arato, founded by entrepreneurs who previously sold a startup to Fiverr, raised a $10 million seed round to help companies test AI‑driven applications by simulating user behavior.
AI’s reach extended beyond enterprise software. Honeycomb raised $40 million to expand its AI‑driven insurance platform. Centrical secured $39 million after repositioning its business to help organizations manage both human employees and AI agents. Willow raised $7 million to develop governance software for enterprise AI deployments. Kimba collected $6.5 million to combine AI with personalized scent therapy to improve sleep, while Shifters raised $10.2 million to build autonomous battlefield robots for high‑risk environments.
The June funding wave illustrates a sustained investor focus on AI‑enabled technology across Israel’s startup landscape. The capital raised will support the scaling of measurement platforms, cybersecurity solutions, networking infrastructure, and a range of AI applications that span enterprise automation, developer tooling, and niche markets. As AI adoption continues to accelerate, the sector is likely to see further rounds, product launches, and strategic partnerships in the coming months.
