The first week of June 2026 is shaping up to be one of the strongest on record for Israeli tech, with three major deals totaling nearly $2.2 billion — two mega-fundraises and a landmark exit.
Cyera Doubles to $12B in Five Months
Data security and AI company Cyera raised $300 million at a $12 billion valuation, more than doubling its worth since January, when it raised $400 million at a $9 billion valuation. The round was led by Evolution Equity Partners, one of the most active investors in Israeli cybersecurity, and brings Cyera's total capital raised to over $1.7 billion.
Founded in 2021 by Yotam Segev and Tamar Bar-Ilan — both graduates of the IDF's Talpiot program and Unit 8200 — Cyera operates in the Data Security Posture Management (DSPM) category. Its platform scans cloud accounts, data stores, and SaaS applications to map sensitive information and flag exposures.
Cyera has been on an acquisition spree. Last month it bought Israeli startup Genie Security for an estimated $50 million, following the acquisition of Ryft Data for $100-130 million and Trail Security for $162 million in 2024. CEO Segev has positioned the company as a consolidator aiming to become "the CrowdStrike or Palo Alto Networks of data security."
Cyera is now the second most valuable private Israeli company, behind only Vast Data ($30 billion).
DriveNets: $410M at $8.5B for AI Networking
Ra'anana-based DriveNets closed a $410 million Series D at an $8.5 billion valuation, bringing total capital raised to $1 billion. The round was led by Bessemer Venture Partners and Atreides Management, with AMD joining as a new strategic investor alongside Pitango and D1 Capital.
DriveNets builds Ethernet-based networking for large-scale AI deployments. The company has been cash-flow positive since 2025 and has over $1 billion in secured business. It works with AMD, Broadcom, Dell, and Supermicro on integrated solutions for AI clusters.
"The most expensive idle asset in the world right now is a GPU waiting on the network," said Ido Susan, CEO and co-founder. "We're enabling our customers to achieve higher utilization, reduce cost per workload, and scale efficiently."
Motorola Solutions Acquires D-Fend for $1.5B
Israeli counter-drone startup D-Fend Solutions was acquired by Motorola Solutions for $1.5 billion — one of the largest Israeli exits of 2026. D-Fend develops RF-based cyber-takeover technology that neutralizes rogue drones by overriding their communications, without kinetic force. The company operates in over 30 countries.
D-Fend has posted more than 50% annual revenue growth for three consecutive years, with projected 2026 revenue of $185 million. The deal is expected to close in Q4 2026, subject to regulatory approval.
Coralogix Also in the Spotlight
Observability platform Coralogix raised $200 million in a Series F at a $1.6 billion valuation, up 60% from its prior round. The round was co-led by CPPIB, Greenfield Partners, and Advent. The company credits surging telemetry data from AI workloads for its growth.
The Big Picture: Israeli Tech Nears $5.2B in 2026
According to Globes, Israeli startups raised $750 million in May, bringing the five-month total to $5.15 billion. Notable May deals included Decart ($300M, AI), Airis Labs ($60M, defense-tech), NVision ($55M, healthcare quantum), Unframe ($50M, AI delivery), and Frame Security ($50M, cyber).
The dominant themes: capital concentration in large rounds, AI and infrastructure at the core, and continued resilience of the Israeli ecosystem despite global uncertainty.
Bottom Line
This week captures where Israeli tech is heading: cyber firms evolving into platforms, AI infrastructure becoming the market's hottest asset class, and defense technologies reaching billion-dollar valuations. Cyera, DriveNets, and D-Fend illustrate an industry transitioning from startups into mature global players.
