Israeli high-tech is sustaining its momentum: three companies closed major funding rounds in under 48 hours, led by Rylo (formerly Nagish) with an $85 million raise at a roughly $500 million valuation, targeting unicorn territory in the near term.
Rylo: From Nagish to Rylo, on the Road to Unicorn Status
Rylo, formerly known as Nagish, developed an AI-powered real-time captioning platform that enables deaf and hard-of-hearing individuals to conduct phone calls and in-person conversations — with two-way support: speech-to-text and text-to-speech. The company has raised over $100 million to date, with the latest round led by General Catalyst and Canaan, joined by existing investors.
The company stated it targets $1 billion in revenue by 2028, with the new capital earmarked for U.S. market expansion and product development.
A Security: AI Agents Against Cyberattacks
On Monday, A Security raised $37 million. The cybersecurity startup develops AI agents that autonomously detect, simulate, and block cyberattacks before they reach enterprise networks. The round was led by Cyberstarts and Lightspeed, with notable participation from Wiz CEO Assaf Rappaport and Cyera CEO Yotam Segev — a strong endorsement of the concept.
A Security operates in the hottest segment of Israeli tech: the AI-cybersecurity convergence, which accounted for roughly 40% of all funding in Q1 2026.
PointFive: Managing the AI Cost Explosion
PointFive, founded by ex-IntSights team members, raised $60 million in Series B led by Accel, with Index Ventures, Salesforce Ventures, and others participating. The company has built a platform for managing and optimizing AI and cloud infrastructure costs — an increasingly critical need as enterprises scale their use of large language models.
Total funding to date stands at approximately $96 million.
The Bigger Picture
Three rounds in quick succession join a broader trend: Q1 2026 was one of the strongest on record for Israeli high-tech, with approximately $3.1 billion raised — up 34% year-over-year. Year-to-date, Israeli startups have raised some $2.24 billion across dozens of rounds.
The past few weeks also featured mega-rounds by DriveNets ($476M at $8.5B valuation), Cyera ($300M at $12B), and Coralogix ($200M at $1.6B) — all in cybersecurity, AI, and cloud infrastructure.
A strong shekel and the continued migration of Israeli companies toward overseas listings remain headwinds, but global demand for Israeli technology — especially at the AI-security intersection — is driving an unprecedented fundraising wave.
The Bottom Line
This week illustrates what has become clear through 2026: the Israeli tech market isn't cooling — it's concentrating. Big capital is flowing to AI-cybersecurity companies with meaningful revenue, and the largest global investors are aiming exactly there.
