The first week of June 2026 is shaping up as one of the biggest fundraising weeks in Israeli tech history. Four companies — DriveNets, Cyera, Coralogix and ZutaCore — collectively raised over $1 billion in a matter of days, underscoring the accelerating concentration of capital in AI infrastructure leaders.
DriveNets: $410M — the Week's Largest Round
DriveNets announced a $410 million Series D at an $8.5 billion valuation. The round was led by Bessemer Venture Partners and Atreides Management, with participation from AMD as a strategic investor, Red Dot Capital, and existing backers Pitango and D1 Capital Partners.
Founded a decade ago in Ra'anana, the company develops Ethernet-based networking solutions for large-scale AI deployments. DriveNets has been cash-flow positive since 2025 and holds over $1 billion in backlog. The valuation nearly doubled from its September 2024 Series C, when it was valued at $4.5 billion.
Cyera Hits $12B — Five Months After Its Last Round
Data security company Cyera raised $300 million at a $12 billion valuation — a 33% jump from the $9 billion valuation at which it raised $400 million in January. The round is led by Evolution Equity Partners, with participation from Georgian, Greenoaks, Lightspeed, Sequoia and others.
Cyera, founded in 2021, has surpassed $150 million in annual recurring revenue. The company has added 500 employees since the start of the year but continues to operate at a significant loss. According to TechCrunch, the deal reflects an 80x ARR multiple — higher than what many fast-growing AI startups command.
The round brings Cyera's total funding to at least $2 billion. The company's customer base now includes one-fifth of the Fortune 500.
Coralogix Reaches $1.6B
Coralogix raised $200 million in a Series F at a $1.6 billion valuation, co-led by Advent, CPPIB (Canada Pension Plan Investment Board) and Greenfield. The company's AI-native observability platform handles the surge in telemetry data generated by autonomous AI systems. Total funding now stands at $550 million.
ZutaCore: $100M for AI Data Center Cooling
ZutaCore, which develops waterless, direct-to-chip liquid cooling for AI data centers, raised $100 million in a Series C at an estimated $600 million valuation. Strategic investors include Samsung, Mitsubishi Electric and Carrier. The Sderot-based company operates across more than 75 deployment sites worldwide.
The Big Picture: A K-Shaped Market
This fundraising week is not an isolated event. According to VCCafe, from March through early June 2026, 13 Israeli or Israeli-founded companies raised rounds of $100 million or more — totaling approximately $3.41 billion. The rounds cluster in AI infrastructure, data security, observability, defense tech and digital health.
"Capital is flowing into the picks and shovels of the AI era — the trust layer around enterprise adoption and the physical infrastructure required to keep the whole system running," the report notes. Companies that successfully raise are category leaders with proven traction and strategic momentum, while general-purpose SaaS companies face a much tougher fundraising environment.
Smaller rounds this week included Honeycomb ($40M, AI-driven digital insurance), Centrical ($39M, AI agent and employee management), and Shifters ($10.2M seed, autonomous battlefield robots).
The Bottom Line
The Israeli ecosystem continues to demonstrate impressive fundraising capacity even in a challenging market — but capital is concentrating in a select group of AI infrastructure and cybersecurity category leaders. For younger startups or those in crowded spaces, the bar for raising capital has never been higher.
