Israeli startups raised over $575 million in August as AI security dominates again
Funding was focused on companies tackling the risks and bottlenecks created by AI, from securing autonomous agents and defending against AI-powered attacks to deploying AI inside large enterprises.
Israeli startups raised at least $577.5 million across 12 funding rounds in August, with a 13th investment announcement involving cybersecurity startup Above that did not disclose a dollar amount.
The figure is particularly striking because August is traditionally one of the quietest months for Israeli tech funding, as much of the industry slows down for summer holidays. August 2026 was the strongest August for Israeli startups since 2022.
The month’s fundraising was dominated by one theme: the rapidly expanding use of artificial intelligence is creating new problems, and investors are increasingly betting that Israeli startups can build the infrastructure and security systems needed to address them.
Of the 13 funding and investment announcements, a large number focused directly on the risks and challenges created by AI. Startups raised money to secure AI models and agents, defend companies against AI-powered cyberattacks, monitor activity inside production environments and help enterprises move AI projects from experimentation into deployment.
The largest round of the month came from Alice, which raised $140 million at a valuation of between $700 million and $800 million. The company is applying years of intelligence on malicious online behavior to what it sees as a new security market emerging around AI models and agents.
The second-largest round was Zenity’s $125 million Series C, bringing the Israeli cybersecurity company’s total funding to $185 million as it accelerates its global expansion. Zenity is focused on securing autonomous AI agents as enterprises increasingly deploy systems capable of acting with less direct human intervention.
Oligo Security and Corma each raised $60 million, but approached the AI-driven security challenge from different directions.
Oligo raised the money as the company argues that AI-driven attacks are allowing attackers to discover vulnerabilities faster than companies can patch them. Its focus is runtime security, protecting applications while they are operating rather than relying solely on finding and fixing vulnerabilities before deployment.
Corma, meanwhile, raised a $60 million Seed round to develop a foundation model for defensive cybersecurity. The company is betting that as general-purpose AI becomes increasingly capable of attacking companies, specialized AI systems will be needed to defend them.
Travel fintech Faye was another major August fundraiser, raising $50 million in a Series C at an estimated $500 million valuation. The company plans to expand globally and use AI to automate insurance claims as it targets what it describes as the next generation of travel protection.
QuantHealth raised $45 million in a Series B for its effort to apply AI simulations to clinical trials. The company says its technology has simulated more than 600 trials and is designed to allow drugmakers to test decisions before enrolling patients or committing billions of dollars to development.
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Remepy raised $36 million in a Series A as it prepares its AI-driven Hybridopa treatment for Parkinson’s disease for Phase III. The company says the program showed improvements in motor and non-motor symptoms in Phase IIa trials. It is also expanding its approach into rare tumors through a new partnership with Merck.
Several of August’s smaller rounds also reflected the growing effort to build security around AI.
Attestable raised $20 million, with backing from alumni of RAND, Unit 8200, StarkWare and Safe Superintelligence. The company is betting that zero-knowledge cryptography can provide companies and governments with a way to verify what happens inside increasingly powerful AI systems.
June AI raised $20 million in a pre-Seed round from Marc Benioff and Michael Dell. The company was founded by the team behind Bonobo AI after five years at Salesforce and is developing AI agents to automate software implementation work that the founders see as a bottleneck to enterprise AI adoption.
Arrakis Security raised $8 million in Seed funding from former Palantir and Torq employees. The startup is focused on security for AI agents and argues that enterprises need to monitor not only which users have access to systems, but what autonomous AI systems do after gaining access.
See the full list of August's deals below. (This includes funding rounds of over $5 million that were officially announced during August):
25.8.26
The Israeli company is applying years of intelligence on malicious online behavior to the rapidly expanding market for AI model and agent security
17.8.26
The startup founded by former AWS engineers is building infrastructure designed to let companies deploy AI agents across different models, clouds and workflows
12.8.26
The Israeli company’s Hybridopa program has shown improvements in motor and non-motor symptoms in Phase IIa trials, while a new partnership with Merck is expanding its approach into rare tumors
11.8.26
Attestable is betting that zero-knowledge cryptography can provide a new way for companies and governments to verify what happens inside increasingly powerful AI systems
10.8.26
The Israeli startup is developing a foundation model for defensive cybersecurity, arguing that general-purpose AI models are becoming increasingly effective at attacking companies but remain poorly equipped to defend them
6.8.26
IAIG believes artificial intelligence has rewritten the economics of software development, allowing startups to compete with established SaaS vendors in weeks rather than years
5.8.26
The strategic investment strengthens product integration with Falcon and underscores growing demand for AI-native security tools that monitor trusted users, not just outside attackers
The Israeli startup plans to expand globally and use AI to automate insurance claims as it targets the next generation of travel protection
4.8.26
The Israeli startup says its technology has simulated more than 600 trials and can help drugmakers test decisions before enrolling patients or spending billions on development
The Israeli startup says attackers are now discovering vulnerabilities faster than companies can patch them, creating demand for real-time protection inside production environments
3.8.26
June AI, founded by the team behind Bonobo AI after five years at Salesforce, is building AI agents to automate the costly software implementation work holding back enterprise AI adoption
Israeli cybersecurity company reaches $185 million in total funding as enterprises race to secure autonomous AI agents
2.8.26
Arrakis Security is betting that enterprises need a new cybersecurity layer focused not just on who has access to systems, but on what autonomous AI systems actually do once they are inside
