The Israeli tech ecosystem is kicking off June with a bang: three companies announced major funding rounds within 48 hours — DriveNets ($410M), ZutaCore ($100M), and Centrical ($39M). Combined, over half a billion dollars were raised in two days, the vast majority riding the AI infrastructure wave.
DriveNets: $410M at $8.5 Billion Valuation
DriveNets, which develops software-driven networking solutions for AI infrastructure, announced on June 1 the close of a $410M Series D round at an $8.5 billion post-money valuation. The round was led by Bessemer Venture Partners and Atreides Management, with AMD joining as a strategic investor and Red Dot Capital Partners, alongside existing investors Pitango and D1 Capital Partners.
Founded by CEO Igal Waldman, DriveNets provides open, multi-vendor Ethernet fabric for large-scale AI deployments. The company has been cash-flow positive since 2025 and reports over $1 billion in secured backlog. Proceeds will fund inventory expansion, support a growing AI fabric pipeline, and explore a potential secondary transaction later in 2026.
ZutaCore: $100M for AI Server Cooling
ZutaCore, an AI cooling startup based in Sderot, announced a $100M Series C round at an estimated $600 million valuation. The round was led by Mitsubishi Electric, Carrier Ventures, and Samsung Ventures.
ZutaCore developed a waterless, direct-to-chip, two-phase liquid cooling technology — a critical solution in an era where AI chip power densities (from NVIDIA GPUs and beyond) are skyrocketing. The company is already deployed with customers including SoftBank and Foxconn in integrated AI rack systems. Total funding to date stands at approximately $200 million.
Centrical: $39M for AI-Era Performance Management
Centrical, an Israeli Performance Intelligence platform, raised $39M in Series D funding led by Leeds Illuminate and Kingfisher Investment, with participation from existing investor JVP. Founded in 2013 by Gal Rimon, the company underwent a deep restructuring in recent years — cutting headcount from ~180 to ~100, doubling average revenue per customer, and pivoting its platform for the AI era.
The new Performance Intelligence OS enables enterprises to manage performance for both human employees and AI agents simultaneously — including AI-assisted coaching, role-play simulations, and autonomous playbook triggers. Customers include major U.S. banks, Deutsche Telekom, IHG Hotels & Resorts, DHL, and others.
Broader Context
According to Globes data, Israeli high-tech raised $750 million in May alone, bringing the five-month total to $5.15 billion. Separately, Cato Networks announced today the opening of a new R&D hub in London focused on AI and network security, part of its global expansion.
The trend is clear: AI infrastructure is the primary engine of Israeli fundraising in 2026 — networking, cooling, security, and performance software are attracting the largest rounds, while total deal count is lower year-over-year but average round size is surging.
The Bottom Line
June 2026 is off to a strong start for the Israeli ecosystem, with a clear focus on AI infrastructure. DriveNets, ZutaCore, and Centrical represent three different angles of the same trend — networking, cooling, and intelligent software for a world where AI becomes embedded in enterprise infrastructure. With $5.15 billion raised in five months, 2026 is on track to match or exceed last year's momentum — but with higher concentration around mature AI infrastructure companies.
