The first week of June 2026 kicked off with a bang: five significant funding rounds totaling over $1 billion in three days, all directly tied to AI infrastructure, cybersecurity, and robotics.

DriveNets leads with $410M

Ra'anana-based networking company DriveNets announced a $410 million Series D at an $8.5 billion valuation — one of the largest infrastructure rounds in Israeli tech history. The round was led by Bessemer Venture Partners and Atreides Management, with new investors AMD and Red Dot Capital joining alongside existing backers Pitango and D1 Capital Partners. DriveNets, which started as a telecom networking infrastructure company, has become a key player in AI fabric networking and Ethernet-based connectivity for large-scale compute clusters. The company is cash-flow positive with over $1 billion in backlog and plans to use the new capital to scale inventory to meet surging demand from cloud providers and AI labs.

Cyera: another $300M at a $12B valuation

Data security company Cyera raised an additional $300 million at a $12 billion valuation — just five months after closing a $400 million round at $9 billion. The round was led by Evolution Equity Partners. According to reports, Cyera has surpassed $150 million in annual recurring revenue, though it remains unprofitable. The company has added 500 employees this year alone. Cyera's data security platform is benefiting from growing demand among enterprises seeking protection against AI-powered cyberattacks.

Coralogix hits $1.6B

Observability platform Coralogix, founded in Israel and now Boston-headquartered, raised $200 million in a Series F round at a $1.6 billion valuation. The round was co-led by Advent International, CPPIB, and Greenfield Partners. Since its Series E in June 2025, which made it a unicorn, the company has nearly doubled its valuation. The funds will be used to expand AI capabilities and enter the Indian market.

ZutaCore: $100M+ for AI cooling

Sderot-based server cooling company ZutaCore raised over $100 million in a Series C round at approximately a $600 million valuation. Strategic investors include Mitsubishi Electric, Carrier Ventures, and Samsung Electronics. ZutaCore develops a unique waterless, direct-to-chip two-phase liquid cooling technology designed for high-power AI processors (over 4,000 watts). The company has completed over 75 deployments worldwide.

Centrical: managing humans and AI agents

Centrical raised $39 million in a Series D led by Leeds Illuminate and Kingfisher Investment, with participation from major shareholder JVP. The company, which develops a performance management platform for frontline workers, recently narrowed its focus to large enterprises and expanded to manage both human employees and AI agents.

The big picture

The flurry of activity in the first three days of June continues a trend that began in 2025 — capital flowing at levels not seen since 2022, concentrated in larger rounds and fewer companies. The common denominator for all five rounds this week is AI: networking infrastructure, cooling, observability, security, and performance management — all riding the wave of surging demand for compute and machine learning infrastructure.

Bottom line

The first half of 2026 is on track to be one of the strongest fundraising periods for Israeli tech, and June has opened with exceptional momentum. The trend is clear: global capital continues to seek AI exposure through Israeli startups, and the companies that manage to scale are doing so at a rapid pace.