This was a pivotal week for Israeli tech, with a string of significant funding rounds spanning cybersecurity, AI infrastructure, and cloud cost management. The activity capped the release of the Poalim Tech and Dealigence H1 2026 report, which showed Israeli startups raised $8.6 billion in the first half of the year — a 45% year-over-year increase.

Cyera: A $12B Valuation in 18 Months

The week's biggest story was Cyera, the AI-powered data security company, which closed a $600 million Series G at a $12 billion valuation. The round was led by Evolution Equity Partners, with participation from Cyberstarts, Temasek, Accel, Blackstone, AT&T Ventures, Coatue, and Spark Capital.

The valuation represents a fourfold increase in 18 months — from $3 billion in late 2024 to $9 billion in January 2026 and now $12 billion. Cyera provides Data Security Posture Management (DSPM), data loss prevention (DLP), and AI security governance for enterprises including Paramount, Chipotle, and Valvoline. The company is now the second-most valuable privately held Israeli tech company, behind only VAST Data.

PointFive: Accel Leads $60M Series B

PointFive, a Tel Aviv-based startup helping enterprises manage runaway AI infrastructure and cloud costs, raised a $60 million Series B led by Accel at an estimated $500 million valuation. Index Ventures, Salesforce Ventures, Entrée Capital, and Sheva Ventures also participated.

Founded in January 2023 by Alon Arvatz, Amir Hozez, and Gal Ben David, PointFive has grown to over 100 employees and achieved 6x ARR growth over the past year. The company targets enterprises spending $1 million or more annually on cloud and AI infrastructure, offering visibility, optimization, and automation tools — a category that is rapidly gaining urgency as organizations struggle with unpredictable AI compute bills.

Aryon Security: $25M Series A Backed by Shlomo Kramer's New Fund

Aryon Security, a cloud cybersecurity startup founded by veterans of the IDF's elite Matzov unit, raised a $25 million Series A led by Brightmind Partners and Skinos Ventures — a new fund launched by Check Point and Imperva co-founder Shlomo Kramer. The round also included CrowdStrike CEO George Kurtz, Datadog Ventures, and Viola Ventures.

Aryon offers a proactive cloud security enforcement platform that prevents misconfigurations before they reach production, moving beyond traditional "detect and fix" approaches. The company emerged from stealth about a year ago with a $9-13 million seed round.

Upriver: AI Data Infrastructure Seed Round

Upriver, an early-stage startup building automated data pipelines for reliable AI deployments, raised approximately $10 million in seed funding led by Valley Capital Partners and Hetz Ventures. Founded by Talpiot graduates, Upriver's technology addresses a critical bottleneck in enterprise AI — the messy, manual process of preparing and maintaining data pipelines.

Macro Picture: $8.6B and Counting

The Poalim Tech and Dealigence H1 report, released this week, paints a clear picture: the number of deals fell roughly 35% year-over-year, but average round size surged. Capital is concentrating in fewer, higher-quality companies, particularly in cybersecurity — where investment more than doubled compared to H1 2025 — and AI infrastructure.

The figures reinforce Israel's position as the world's fourth-largest startup funding hub, with the tech sector now accounting for nearly half of the country's economic growth, according to the Israel Innovation Authority's recent annual report.

Bottom Line

This week showcased the full spectrum of Israeli tech strength: a mega-round from a cybersecurity unicorn entering the top tier, a growth-stage startup riding the AI cost-management wave, early-stage cybersecurity innovation with heavyweight backers, and a seed-stage bet on AI infrastructure. The message from the market is clear — global investors continue to place large, conviction-driven bets on Israeli technology, with AI and cybersecurity leading the way.