This week in the Israeli tech ecosystem was marked by several major events: three companies completed large funding rounds, and a record-breaking acquisition of an Israeli startup by Motorola Solutions underscored growing interest in civilian defense technology. The common thread running through all of them is artificial intelligence.

D-Fend Solutions Acquired by Motorola for $1.5 Billion

The biggest deal of the week, and the largest acquisition of an Israeli defense-tech company ever, is D-Fend Solutions. Motorola Solutions (NYSE: MSI) announced the acquisition of the Ra'anana-based startup for $1.5 billion in cash.

D-Fend developed a drone-interception system that locates unmanned aerial vehicles, takes remote control of them using radio waves, and lands them safely. The technology is primarily used for civilian infrastructure protection: airports, border crossings, stadiums, and strategic facilities. It served as the primary security system at the Super Bowl.

The company is expected to generate approximately $185 million in revenue in 2026, following more than 50% sales growth in recent years. D-Fend's 250 employees will move to Motorola in exchange for tens of millions of dollars in bonuses and shares.

Rylo (formerly Nagish) Raises $85M at $500M Valuation

Rylo, a Tel Aviv and New York-based company developing AI-powered real-time speech and sign-language translation tools for the deaf and hard-of-hearing community, raised $85 million at an estimated $500 million valuation.

The round was led by General Catalyst's Customer Value Fund and Canaan, with participation from Vertex Ventures and Contour. The company has reached early profitability and has set an ambitious target: $1 billion in revenue by 2028. Total funding has exceeded $100 million.

PointFive Closes $60M Series B Led by Accel

PointFive, which builds a cloud and AI cost optimization platform, announced a $60 million Series B round led by Accel, with participation from Salesforce Ventures, Index Ventures, Entrée Capital, and others. The round follows 6x ARR growth between 2024 and 2025.

Alongside the round, the company launched its AI Efficiency OS platform — a continuous optimization system for cloud and AI costs — and a companion product, TokenShift, for managing token consumption from AI coding agents. PointFive reports average cloud cost savings of 30% for its customers.

A Security Emerges from Stealth with $37M

A Security, an Israeli autonomous cybersecurity company, emerged from stealth with a total of $37 million in funding — $5 million in seed and $32 million in Series A. The round was led by Lightspeed Venture Partners and Cyberstarts, with backing from prominent angel investors including Wiz CEO Assaf Rappaport and Cyera CEO Yotam Segev.

The company has developed an autonomous platform that identifies attack paths and neutralizes AI-powered threats before they reach enterprise networks. Founders: Yossi Torati (CEO), Yuval Itzchakov (CTO), and Omer Gull (CPO).

The Big Picture: Capital Concentrating in Fewer, Stronger Companies

These three funding rounds are part of a broader trend: Israeli high-tech fundraising in the first half of 2026 reached approximately $8.6 billion — a 45% increase year-over-year. However, the number of deals declined by 35%, signaling that investors are concentrating capital in the strongest companies, particularly in AI and cybersecurity.

Bottom Line

This week in Israeli tech paints a balanced picture: a record exit alongside significant funding rounds for young companies with promising AI technology. Investors are choosing selectively — but when they choose, they choose big.