The first week of June 2026 is shaping up to be one of the busiest in Israeli tech history by capital volume. Four companies — DriveNets, Cyera, Coralogix, and ZutaCore — together raised over $1 billion within five days, signaling continued recovery in venture investment and a concentration of capital in AI infrastructure and cybersecurity.

The Mega-Rounds

DriveNets, headquartered in Ra'anana, led the charge with a $410 million Series D at an $8.5 billion valuation, announced June 1. The company develops Ethernet-based networking solutions for large-scale AI deployments and has now raised approximately $1 billion in total. New investors include Atreides Management, AMD, and Red Dot Capital, alongside existing backers Pitango and D1 Capital Partners. DriveNets has been cash-flow positive since 2025 and holds a backlog of over $1 billion.

Cyera, the data security company, closed a $300 million round at a $12 billion valuation on June 2, led by Evolution Equity Partners. This is Cyera's second mega-round within six months, following a $400 million raise in January 2026 at a $9 billion valuation. Total capital raised now exceeds $2 billion, making Cyera one of the most richly valued private cybersecurity companies globally.

Coralogix completed a $200 million Series F on June 3 at a $1.6 billion valuation — up 60% from its previous round. The round was co-led by CPPIB, Greenfield Partners, and Advent, with participation from Brighton Park Capital. The company's observability platform is benefiting from surging telemetry data volumes driven by AI adoption. Total funding stands at $550 million.

ZutaCore raised $100 million in a Series C round at approximately $600 million valuation, backed by Mitsubishi Electric, Carrier Ventures, and Samsung Ventures. The Israeli-founded company develops waterless, direct-to-chip liquid cooling systems for AI data center processors and plans to use the funds for global expansion.

Early-Stage Activity

The early-stage scene was also active. Honeycomb, an Israeli insurtech using AI and computer vision for granular property risk assessment, raised $40 million. Willow, developing an enterprise AI agent access and governance platform, secured $7 million in seed funding with backing from Wix CEO Avishai Abrahami. Offroad emerged from stealth with a $7 million seed round led by Ibex Investors and Skywell Capital, building an AI agent-driven identity security platform that autonomously investigates and remediates identity risks across enterprise systems.

Exit: Motorola Acquires D-Fend for $1.5B

On the M&A front, June 1 brought a major deal: Motorola Solutions acquired Israeli drone defense startup D-Fend for $1.5 billion. The acquisition reflects growing global demand for counter-drone technology, particularly amid the proliferation of aerial warfare in modern battlefields.

Macro Context

Q1 2026 saw Israeli tech companies raise approximately $3.1 billion across 98 rounds — a 34% year-over-year increase. The first four months totaled roughly $4.4 billion. The vast majority of large rounds — 13 deals exceeding $100 million from March through early June — are concentrated in cybersecurity, AI infrastructure, observability, and related sectors. The IPO market remains subdued, but M&A continues to generate strong returns.

Bottom Line

Israeli high-tech continues to attract global capital, with clear concentration in AI infrastructure and data security. The first week of June — over $1 billion in raises plus a $1.5 billion exit — paints an optimistic picture for the rest of 2026.