Israeli startups raise over $800 million in a week of mega deals as investor confidence surges

Israeli startups have raised more than $800 million over the past week, marking the strongest burst of private investment in the country’s tech sector this year.

Full list of Israeli high-tech funding rounds in 2025

At the center of the activity was Armis, the Israeli-founded cybersecurity company, which announced a $435 million round at a valuation of $6.1 billion, one of the largest private cybersecurity financings of 2025. The round was led by Growth Equity at Goldman Sachs Alternatives with major participation from CapitalG and Evolution Equity Partners, and was joined by several existing backers.

Sweer Security.

While most of the capital will flow directly into Armis, some early investors sold small stakes for several million dollars. According to Calcalist, many shareholders declined to sell even at high offers, a sign of strong faith in the company’s trajectory.

Just months after emerging from stealth, Wonderful, a Tel Aviv-based company building AI-powered agents for enterprise use, raised $100 million in a Series A led by Index Ventures, with participation from Insight Partners, IVP, and existing backers Bessemer Venture Partners and Vine Ventures.

The round, arriving only four months after a $34 million Seed, signals growing global interest in AI companies capable of bridging experimentation and deployment. Investors say Wonderful’s ability to integrate autonomous agents into real-world enterprise systems sets it apart in an increasingly crowded field.

Cybersecurity continued to attract heavyweight investors. Sweet Security, a cloud protection company led by Brig. Gen. (res.) Dror Keshti, raised $75 million in a Series B led by Evolution Equity Partners with participation from Munich Re Ventures, Glilot Capital Partners, and Key1 Capital. The funding brings Sweet’s total capital raised to $120 million, all secured within the past two and a half years.

Sweet’s platform offers security teams full visibility across code execution, configuration, and identity layers, while its new AI Security division targets “shadow AI,” unmonitored AI tools operating within enterprise systems. The round also included about $15 million in secondary transactions, reflecting early investor demand to increase exposure.

In the infrastructure and compute layer of AI, Majestic Labs closed a $90 million Series A, following a $10 million Seed last year. The round was led by Bow Wave Capital, with participation from Lux Capital, SBI, Upfront, Grove Ventures, Hetz Ventures, QP Ventures, Aidenlair Global, and TAL Ventures.

Founded by former executives from Google and Meta, Majestic Labs says it aims to “radically reshape” the way the world trains and deploys AI. Its all-in-one servers are designed to handle workloads that currently require multiple racks of conventional hardware, a promise that has drawn strong backing amid rising demand for AI compute efficiency.

Meanwhile, Tenzai, a new cybersecurity startup founded by veterans of Guardicore and Snyk, emerged with a $75 million Seed round, one of the largest early-stage financings ever recorded in Israel. The round was led by Battery Ventures, Greylock Partners, and Lux Capital, alongside Swish Ventures, Jibe Ventures, and others.

Tenzai was founded in May 2025 by Pavel Gurvich, Ariel Zeitlin, Ofri Ziv, Itamar Tal, and Aner Mazur, all of whom played key roles in Guardicore’s growth and eventual $600 million sale to Akamai in 2021. The company currently employs 18 people and is believed to be working on new approaches to cloud and network defense.

Finally, serial cyber entrepreneur Shai Morag, who has already led three successful exits, has quietly launched a new stealth-mode company. According to information obtained by Calcalist, the company has raised about $60 million in two rounds, $20 million initially, followed by $40 million, with participation from Greylock, Accel, and CRV.

Morag’s track record includes co-founding Ermetic, which was acquired by Tenable in 2023 for approximately $265 million. His new venture is already drawing attention despite remaining under wraps.

The flood of capital into Israeli startups shows that even amid security challenges and global investor caution, international funds continue to seek exposure to Israeli innovation, particularly in cybersecurity and AI, where technical expertise and speed to market remain unrivaled.

The past week’s funding activity, spanning from stealth ventures to multi-billion-dollar valuations, highlights both the maturity and diversity of Israel’s tech landscape. If the momentum continues, 2025 could yet become one of the most significant years for Israeli private capital investment since the post-pandemic boom.