Israel’s startup funding hits $2.77 billion in September, driven by five mega-rounds
The month’s largest deals accounted for nearly 70% of the capital raised as investors poured money into AI and cybersecurity.
Israeli startups raised approximately $2.77 billion across 28 funding rounds in September, with a handful of unusually large transactions accounting for much of the capital and highlighting the continued concentration of investment around cybersecurity, artificial intelligence and companies building infrastructure for the AI economy.
The month was bookended by several major rounds. On September 2, enterprise AI startup Wonderful raised $550 million at a $5 billion valuation, just six months after raising $150 million at a $2 billion valuation. Cybersecurity company Cyera followed with a $400 million investment from Goldman Sachs on September 22, bringing its total funding in 2026 to $1.4 billion and its valuation to more than $12 billion.
Island, another cybersecurity company, raised $400 million on September 24 at a $6.4 billion valuation. Upwind raised $300 million, more than doubling its valuation to $3.8 billion in just five months, while defense startup Covenant emerged from stealth with $250 million at a valuation above $1 billion.
Those five rounds alone accounted for $1.9 billion, or roughly 69% of all the capital raised by Israeli startups in the 28 rounds tracked for September.
The month also featured several other sizeable transactions. Salesforce led a $166 million investment in Israeli HR technology company HiBob at a $3.5 billion valuation. Construction software company Buildots raised $130 million at nearly a $1 billion valuation, while MIND raised $72 million at a $300 million valuation.
Cybersecurity remained the dominant theme throughout the month, particularly around the growing use of AI agents inside companies. Reco raised $55 million with backing from AT&T, AIR Security raised $50 million to develop what it describes as a firewall for AI agents, and Cymphony raised $25 million to secure the overlap between employees and AI agents.
Huskeys raised $27 million from Blackstone for its work on an agentic AI layer for web application firewalls, while Euno raised $23 million to help AI agents access and use organizational knowledge. Keewano raised $12 million to develop a database designed for AI agents, and DataAgent emerged from stealth with a $10 million pre-seed round to develop self-healing infrastructure using autonomous agents.
The concentration of funding around AI does not mean the month was limited to software. Israeli defense technology attracted significant capital, with AITAN raising $41 million to expand its combat-drone technology internationally and Covenant raising $250 million in its emergence from stealth.
Healthcare also produced two notable rounds. UltraSight raised $24 million for its AI-powered cardiac imaging technology, while FIZE Medical raised $20 million to advance its AI-guided platform for intensive care.
Other companies raising capital included travel-tech company HyperGuest, which raised $25 million from Apax; Loora, which raised $22 million to expand its AI English-learning platform; Wint, which raised $36 million for its AI-based water-risk detection technology; HydroSight, which raised $5 million for AI-powered seabed mapping; and Particula, which raised $15 million as it expands its smart toys internationally.
One of the clearest patterns in September's fundraising was how frequently companies described their products in relation to AI agents.
The shift goes beyond companies building foundation models or generic AI software. Cyera is expanding from data security into AI agents and non-human identities. Island is moving beyond its enterprise browser toward a broader control layer for employees and AI agents. Reco is targeting the security risks created as enterprises deploy more agents, while Cymphony is building technology around identities, permissions and behavior across humans and machines.
Other startups are approaching the same shift from different directions. Chamelio raised $26 million to build AI agents for legal workflows, Catch raised $5 million to automate administrative tasks for executives, and Euno is developing systems intended to give AI agents the organizational knowledge needed to operate inside large companies.
The pattern suggests that investors are increasingly funding the infrastructure around the deployment of AI rather than simply applications that use it.
Cybersecurity was particularly prominent among the September rounds. In addition to the mega-rounds for Cyera, Island and Upwind, the month included investments in Rig Security, Reco, Cymphony, Huskeys, Euno and AIR Security.
Guardio also attracted a $40 million round that valued the consumer cybersecurity company at $1.1 billion. The company said it had surpassed one million paying customers and $150 million in annual recurring revenue.
See the full list of September's deals below. (This includes funding rounds of over $5 million that were officially announced during September):
29.9.26
The Israeli travel-tech company connects hotels with travel companies, technology providers and AI agents and has processed more than $1 billion in transactions
Guy Kozliner, who worked on Wiz co-founder Ami Luttwak's CTO team, is building a platform to distinguish AI agents from the humans whose identities they use
The company, which began working with AT&T as a customer, plans to expand sales, partnerships and customer support as large enterprises deploy more agents
24.9.26
The cybersecurity company is moving beyond its enterprise browser to build a broader control layer for employees and AI agents operating across corporate systems
23.9.26
The Israeli startup’s AI platform enables trained medical staff to perform echocardiograms and is already installed in intensive care units at more than 10 medical facilities
22.9.26
Backed by Entrée Capital, the startup is building software designed to execute routine legal workflows and escalate only the cases that require human judgment
The latest investment extends Cyera’s Series G and comes as the Israeli cybersecurity company expands from data security into AI agents and non-human identities, with a valuation of more than $12 billion
17.9.26
MIND has raised $112 million to date and reached a $10 million annual revenue run rate just 18 months after beginning to sell its product, as demand for data loss prevention grows with the adoption of GenAI and AI agents
The Series B, co-led by Asahi Kasei Medical and Rapha Capital, will accelerate development of a platform designed to predict fluid-related risks in critically ill patients
16.9.26
Loora says its app has more than 15 million users and annual recurring revenue in the tens of millions of dollars
15.9.26
The Israeli startup argues that traditional databases were designed around humans asking predefined questions, not machines investigating unfamiliar patterns across billions of events. Its new system keeps data in sequence and context so AI agents can reason over it directly
14.9.26
The Israeli construction software company has more than quadrupled its valuation from its previous funding round and now has over 400 employees. Its AI system is increasingly being used on massive data center projects, where delays can carry particularly high financial costs
9.9.26
The startup, founded in 2024, has spent two years operating in near-total secrecy as it develops Anthem, a long-range heavy-payload weapon designed to be produced at a fraction of the cost of comparable legacy systems, with serial production expected to begin in 2027
Euno is building a platform designed to give AI agents the organizational knowledge they need to work reliably inside large companies. The Series A, led by N47, will fund expansion in sales, marketing and AI research as the startup targets Fortune 500 customers
The Israeli cybersecurity startup has raised $30 million to date as it builds a platform that maps identities, permissions, information and behavior in a single graph
The Israeli company’s technology analyzes water use in buildings in real time, helping identify leaks, waste and potential problems before they cause damage. Wint says its platform saved 1.15 billion gallons of water and helped prevent an estimated $100 million in damage in 2025
7.9.26
HydroSight's AI platform integrates marine survey data to identify changes and anomalies on the seabed, helping ports, energy companies and telecom operators better plan and manage underwater infrastructure
3.9.26
The Wiz co-founder joined a $40 million round in the Israeli cybersecurity company, which has surpassed one million paying customers and recorded more than 100% annual revenue growth for four consecutive years. CEO Amos Peled says AI is creating a once-in-a-generation opportunity in consumer security
2.9.26
The company, whose systems have been used by Israeli forces since October 7, has accumulated more than 500,000 operational flight hours. Its new funding will help expand technology developed through combat experience in Israel to the country’s allies
The Israeli enterprise AI startup has now raised more than $800 million since its founding in early 2025, as it expands into more than 35 markets and grows to about 650 employees
Huskeys is developing an agentic AI layer for web application firewalls, arguing that security infrastructure built decades ago needs to be redesigned for a world in which AI agents increasingly act online
The Israeli startup is targeting executives who want AI to handle administrative work without learning new software or constructing complicated workflows
The Israeli cloud security company was valued at $1.5 billion when it raised $250 million in January, and has since attracted fresh backing from Bessemer Venture Partners, TCV, Salesforce Ventures and other prominent investors
1.9.26
The Bob developer says its platform can provide the workforce data, organizational context and permissions needed to deploy AI tools and agents inside companies
The company behind GoCube has sold more than 1 million units and is expanding into retail, new product categories and licensed entertainment with a Harry Potter-themed chess product
The Israeli startup is taking aim at the cost and complexity of observability by putting autonomous agents directly inside production environments
The Israeli startup emerged from stealth with research showing thousands of AI add-ons rely on untrusted sources, as companies give autonomous agents access to more data, tools and systems
