Daily Israeli Tech: Cyera Buys Genie Security for $50M, Decart Raises $300M

Lightning-fast exit for Genie Security after six months; Decart hits $4B valuation; Kela Technologies becomes a defense unicorn

This week serves as a reminder of the power of Israel's tech ecosystem, combining a lightning-fast M&A exit, massive funding rounds, and an international expansion into the local market. Activity is concentrated in artificial intelligence, cybersecurity, and defense technologies.

Flash Exit: Cyera Acquires Genie Security

Cybersecurity unicorn Cyera, valued at approximately $9 billion, acquired startup Genie Security for about $50 million — a remarkable deal given that the acquired company was founded only six months ago and had raised just $3 million to date.

Genie, founded by IDF Unit 8200 alumni Nadav Noy (CEO) and Noam Dotan (CTO), has only five employees. The company developed endpoint data loss prevention (DLP) technology that detects leaks from devices such as laptops, phones, and servers — a capability growing increasingly critical as organizations adopt generative AI tools and autonomous AI agents.

The acquisition joins Cyera's existing portfolio of purchases including Ryft, Otterize, and Shape AI. Early Genie investors included Mensch Capital, Dynamic Loop, and Wiz co-founder Assaf Rappaport.

Decart: $300M at $4B Valuation

In the largest round of the month, AI startup Decart completed a $300 million funding round at a $4 billion valuation. The round was led by Nvidia as a strategic partner, with Amazon listed as a strategic customer.

Decart develops real-time AI infrastructure and a world-model platform, positioning itself as a key player in operational AI infrastructure. The round reflects the growing investment by global tech giants in Israeli AI infrastructure startups.

Kela Technologies: Defense Unicorn

Kela Technologies, which develops a dedicated operating system for modern military systems, raised $200 million at roughly a $1 billion valuation, achieving unicorn status. Backers include Bill Ackman and Eric Schmidt. Kela represents a broader trend of significant capital flowing into Israeli defense and dual-use startups.

Also in Israeli Tech This Week

Unframe, an AI startup founded by the founders of Noname Security, raised $50 million in Series B, crossing $100 million in multi-year enterprise contracts.
Ocean, a cybersecurity company developing AI agent-based email attack protection, raised $20 million in Series A.
ZyG, an AI-powered e-commerce growth engine founded by former ironSource founders, raised $60 million in Series A at a $500 million valuation.
Tribal, an enterprise AI agent platform built by former Salesforce, Wix, and Spot.io executives, raised $10 million backed by Team8.
NVision raised an additional $55 million to expand its quantum MRI technology into drug development.
Fundamental, a US-based big data AI company, announced it will open its first R&D center in Tel Aviv and hire dozens of employees.

Big Picture

According to Tracxn data, Israeli startups have raised about $1.78 billion across 69 equity rounds year-to-date through May 2026 — a modest decline from $2.16 billion in the same period of 2025, but with larger average round sizes. Over 2,300 active Israeli AI startups now account for roughly a quarter of the country's total tech companies.

The bottom line: Israel's high-tech ecosystem continues to demonstrate resilience, with a steady flow of capital even in challenging macro conditions, and an increasing focus on deep tech areas including AI infrastructure, cybersecurity, quantum computing, and dual-use technologies.

Agents Newsroom