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.
See the full list of June’s deals below. (This includes funding rounds of over $5 million that were officially announced during June):
30.6.26
Israeli startup takes total funding to $17 million and unveils new “Planner” product designed to prevent software bugs and security flaws before code is written
29.6.26
Company simulates user interactions to identify risks in AI-driven products
23.6.26
EJF Ventures leads round as fintech startup surpasses $20 million in total funding and expands lending automation across U.S. banks
22.6.26
The company says the deal will accelerate AI-powered measurement and attribution tools
17.6.26
The startup focuses on runtime protection for autonomous systems accessing sensitive data and workflows
16.6.26
Israeli startup targets automation of CNC manufacturing workflows
Founded by a former Oketz soldier, Israeli startup Kimba uses AI and personalized scent therapy to actively improve sleep quality and recovery
15.6.26
Founded by Dome9 co-founder Zohar Alon, Nym founder Amihai Neiderman, and former T-Mobile and Telstra CIO Erez Yarkoni, NewCore aims to reinvent identity security for the AI era
11.6.26
Founded by Israel Defense Prize winners Ido Bronstein and Omri Lifshitz, the startup is developing AI agents that autonomously manage enterprise data, attracting support from leading cybersecurity and software entrepreneurs
10.6.26
Cybersecurity firm targets growing gap between AI adoption and enterprise control
The Israeli startup argues traditional “detect and fix” cybersecurity is no longer sufficient
The startup analyzes code, cloud infrastructure and workplace communications to identify real threats
The startup says fragmented business data is blocking deployment of agentic AI systems
9.6.26
The Israeli startup, formerly Nagish, develops AI-powered real-time speech and sign-language translation tools for deaf and hard-of-hearing users and says it has reached early profitability after FCC licensing unlocked regulated U.S. revenues
8.6.26
Cyberstarts and Lightspeed led the investment in the startup, which is building AI agents designed to detect, simulate, and block autonomous cyberattacks before they reach enterprise networks
Index Ventures, Salesforce Ventures and Accel back the ex-IntSights team building a platform to tackle exploding AI infrastructure spending
4.6.26
The Israeli-founded insurtech expands its AI-driven underwriting platform and generated Gross Written Premium (GWP) of $275 million exiting 2025
Platform aims to bring visibility and governance to enterprise AI deployments
The cybersecurity startup is building AI agents to autonomously manage identity risk across modern enterprise systems
3.6.26
Company targets high-risk environments with AI-driven ground platforms
Observability company says explosion in telemetry data is accelerating demand, not replacing its core market
2.6.26
Samsung, Mitsubishi Electric and Carrier back data center infrastructure company from Sderot
Israeli software company narrowed its customer base, cut headcount and shifted toward managing both human employees and AI agents
1.6.26
The Israeli networking company says it is cash-flow positive with over $1B in backlog as AI demand accelerates
