Israeli cyber startups attract nearly half of all global sector funding
Companies raised at least $2.425 billion in the third quarter, as investors backed businesses securing AI agents and infrastructure
Israeli cybersecurity startups raised at least $2.425 billion in the third quarter of 2026 – equivalent to nearly half (46 per cent) of global venture capital investment in the sector, according to data compiled by Israeli technology news outlet CTech.
The investment was spread across 26 publicly disclosed rounds between July and September, with much of the funding going to companies developing security tools for AI agents and the infrastructure supporting them.
Cybersecurity has long been a standout sector in Israel’s technology industry. Israeli cyber companies raised $4.4 billion across 130 funding rounds in 2025, according to venture capital firm YL Ventures. The latest figures suggest continued investor appetite, with growing attention on the security challenges created by AI.
Globally, cybersecurity investment reached $5.26 billion, its strongest quarterly performance since 2022, according to figures from Pinpoint Search Group published by the Wall Street Journal and cited by CTech. That was nearly double the previous quarter and 78 per cent higher than a year earlier.
Island and Cyera led the Israeli rounds, each raising $400 million.
Island, which started with a security-focused browser for businesses, secured its funding at a $6.4 billion valuation. It is expanding its technology to help companies govern how employees and AI systems interact with corporate networks.
Data-security company Cyera raised $400 million from Goldman Sachs in September, taking its total fundraising this year to $1.4 billion and its valuation to more than $12 billion, CTech reported. Its work increasingly includes managing digital identities used by machines and autonomous software.
Other significant rounds included $180 million for Glow, which emerged from stealth at a $1.2 billion valuation, $125 million for Zenity and $113 million for Onyx Security.
According to CTech, around 20 of the 26 disclosed rounds involved companies working on AI agents, machine identities or infrastructure for the AI era.
These businesses are addressing a growing challenge: as companies introduce AI systems that can access information and perform tasks independently, they need ways to control those systems’ permissions and monitor their actions.
The funding wave also includes experienced entrepreneurs returning after earlier exits, continuing a cycle that has helped develop Israel’s cybersecurity industry.
However, CTech noted that many startups are tackling similar problems, raising questions about how successfully they can differentiate themselves and turn investor backing into paying customers.
he total excludes undisclosed investments in Above Security, which tackles insider threats, and Zafran, which helps businesses identify and reduce their exposure to cyberattacks.