Israeli startups raise more than $3 billion in June as AI investment frenzy accelerates
AppsFlyer, Cyera and DriveNets led one of the strongest fundraising months in recent years, while more than 25 startups attracted fresh capital as investors concentrated on companies building the infrastructure, security and applications powering the AI era.
Israeli startups raised more than $3 billion across more than 25 funding rounds during June, marking one of the strongest fundraising months in recent years and underscoring investors' continued appetite for companies positioned to benefit from the rapid adoption of artificial intelligence.
The month's fundraising activity was defined not only by its scale but also by its concentration around AI. Nearly every major round involved startups developing AI infrastructure, enterprise software, cybersecurity, developer tools or automation platforms, reflecting how artificial intelligence has become the dominant investment theme across Israel's technology sector.
The largest transaction came from AppsFlyer, which secured more than $1 billion from Google, Meta, Unity and Moloco at a $2.7 billion valuation to expand its AI-powered measurement platform. Cybersecurity heavyweight Cyera followed with a $600 million round that quadrupled its valuation to $12 billion in just 18 months. Networking company DriveNets raised $410 million at an $8.5 billion valuation, citing accelerated demand driven by AI infrastructure and reporting more than $1 billion in backlog.
Several other mature companies also completed sizable financings. Observability platform Coralogix raised $200 million at a $1.6 billion valuation as exploding 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, while networking startup Rylo raised $85 million at a $500 million valuation after reaching early profitability.
Cybersecurity remained one of Israel's strongest sectors throughout the month. NewCore emerged from stealth with a $66 million financing to build identity security for the AI era, while PointFive raised $60 million to tackle the rapidly rising infrastructure costs associated with enterprise AI. A Security secured $37 million to develop AI agents capable of detecting and blocking autonomous cyberattacks, Aryon Security raised $25 million to rethink cloud security, Offroad launched with $7 million to automate identity protection, and Tenet collected $6 million to 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 emerged with $10 million to develop AI agents capable of autonomously managing enterprise data.
Developer tools represented another major investment theme. Baz, founded by Bridgecrew founder Guy Eisenkot, raised an additional $9 million, bringing its total funding to $17 million, while introducing a new 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, emerged with a $10 million seed round to help companies test AI-driven applications by simulating user behavior.
AI's reach extended well 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.
