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Two $400M cyber rounds and the question behind Israel's funding rebound

Published 1 day ago • 1 min read

The Weekly Dispatch

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Hi everyone,

Sukkot begins tonight, and there's something fitting about a harvest festival landing on a week when Israeli tech brought in such a haul.

Israeli startups raised $3.6 billion across 91 rounds in Q3, up 53% from a year ago, according to the IVC-LeumiTech review. That's roughly $11 billion so far in 2026. Cybersecurity accounted for 38% of the year-to-date total. The recovery is real, but it isn't evenly shared. The question is whether enough capital reaches the next generation of companies, not just the obvious winners.

This week's two giant cyber rounds make that concentration hard to miss. Cyera added $400 million from Goldman Sachs Alternatives to its Series G, at a valuation it says exceeds $12 billion. Island raised $400 million in a Series F led by Evolution Equity Partners, valuing it at $6.4 billion. They approach enterprise security from different starting points, but both are making the case that AI agents need tighter controls over what they can see and do.

There was plenty beyond cyber. Chamelio raised $26 million to bring AI agents into in-house legal work, while UltraSight raised $24 million for AI-guided cardiac imaging. In M&A, Cognex signed a deal to buy RealSense for about $500 million in cash; it is expected to close in Q4, so this is not a completed exit yet. Ondas acquired three defense-tech businesses - Insignito, Ottopia Defense and Caribou Labs - for $56 million, with up to $32 million more tied to milestones.

Let's dive in!

Eze

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The model market map by Radical ventures (source)

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