Just three months after launch, cyber startup Spirit valued at $400 million in $50 million raise
Exclusive: Cyberstarts and Sequoia Capital are leading the round, joined by angel investors including Assaf Rappaport of Wiz, Yotam Segev of Cyera, and Armis co-founder Yevgeny Dibrov.
The wave of fundraising in Israel’s cybersecurity sector has reached a record high, with even very young and largely unproven companies commanding strikingly high valuations. Calcalist has learned that Spirit, a cybersecurity startup founded just three months ago, is in the process of raising $50 million at a valuation of $400 million, in a round led by Israeli venture capital firm Cyberstarts.
Spirit was founded by Itai Efraim, Dor Aharonson, and Tomer Frizler, close friends and graduates of the same class in the IDF’s elite Talpiot program. The three served in senior command and research roles in Unit 8200 and have known one another for many years. Spirit is their first venture since leaving military service.
The company currently employs 10 people and remains at the concept formulation stage, while working closely with large organizations around the world. Following the completion of the funding round, Spirit plans to accelerate its growth and expand hiring in Israel, with a focus on cybersecurity and artificial intelligence specialists.
Spirit is developing an enterprise-focused information security platform aimed at large organizations that rely on complex enterprise software environments. At this stage, the company is exploring how advanced AI capabilities can be embedded into organizational security systems, with the goal of enabling intelligent threat detection, pattern analysis, and real-time response to attacks, while reducing the operational burden on security teams.
The investment on behalf of Cyberstarts is being led by Dor Knafo, a former cybersecurity entrepreneur, marking his first investment since joining the firm. The round is being co-led by Sequoia Capital, with participation from several prominent figures in the global cybersecurity industry, including Yotam Segev, co-founder and CEO of Cyera; Assaf Rappaport, co-founder and CEO of Wiz; and Yevgeny Dibrov, co-founder and CEO of Armis.
Spirit’s fundraising comes amid a broader surge in Israeli cybersecurity investment. In November, Tenzai, founded by members of the Guardicore team, raised $75 million in a Seed round, while Vega secured a $120 million Series B last month at a valuation of roughly $700 million.
