Israeli startup funding hit $2.77B across 28 rounds in September, and five mega-rounds took 69%. See who raised, at what valuation, and why AI agents lead.
Israeli startups raised about $2.77 billion across 28 funding rounds in September 2026, according to CTech Data's September funding tally. Five mega-rounds made up roughly 69% of that total. Cybersecurity and AI companies took four of the five largest rounds, led by Wonderful's $550 million and two $400 million rounds for Cyera and Island.
An AI agent is a software program that completes tasks inside company systems, such as opening tickets or moving data, without a person approving each step. The term runs through many of September's security and infrastructure rounds, which is why it frames this report.
Which five deals made up 69% of Israeli startup funding?
Five rounds worth a combined $1.9 billion made up about 69% of the capital Israeli startups raised in September 2026. CTech Data counts announced rounds above $5 million.
| Company | Amount raised | Valuation | Sector | Announced |
|---|---|---|---|---|
| Wonderful | $550 million | $5 billion | Enterprise AI | Sept. 2 |
| Cyera | $400 million (Goldman Sachs Alternatives) | Above $12 billion | Cybersecurity | Sept. 22 |
| Island | $400 million | $6.4 billion | Cybersecurity | Sept. 24 |
| Upwind | $300 million | $3.8 billion | Cloud security | Sept. 2 |
| Covenant | $250 million | Above $1 billion | Defense | Sept. 9 |
The other 23 rounds raised roughly $870 million combined, an average near $38 million each. That is Olam's calculation from CTech Data's totals. Five deals were 18% of the round count and 69% of the dollars.
How fast are valuations rising for Israel's biggest startups?
Wonderful, Upwind and Cyera each raised at higher valuations within six months of an earlier round, and Wonderful and Upwind more than doubled theirs. Wonderful went from a $2 billion valuation to $5 billion in six months. Upwind went from $1.5 billion in January to $3.8 billion.
Cyera shows the same climb at a larger scale. The company was valued at $9 billion after a January round and at more than $12 billion by mid-year, and Calcalist reports that Cyera has now raised more than Wiz did before Google completed its $32 billion acquisition of Wiz in March 2026. Calcalist also reports that Cyera's founders are preparing an IPO option.
Yotam Segev (chief executive) and Tamar Bar-Ilan (chief technology officer) founded Cyera in 2021 after meeting during their Israeli army service. Olam's profile of the Cyera co-founders and their data-security business covers how the company got here.
A valuation is the price investors agreed to in one round. Cyera's $400 million Goldman Sachs investment extended its Series G and did not set a new valuation, so the "more than $12 billion" figure is the company's own statement.
Why do so many September rounds mention AI agents?
Many September rounds mention AI agents because investors are funding the tools companies need to secure, run and feed those agents, according to CTech Data. Cyera is expanding from data security into AI agents and the identities software uses to access systems. Island is extending its enterprise browser into a control layer for employees and agents.
The smaller rounds show the same pattern at the seed and Series A stage.
| Company | Amount raised | What the product does |
|---|---|---|
| Reco | $55 million | Secures the risks created as large companies deploy more agents |
| AIR Security | $50 million | Builds a firewall for AI agents |
| Cymphony | $25 million | Maps identities, permissions and behavior across employees and agents |
| Euno | $23 million | Gives agents the company knowledge they need to work reliably |
| Keewano | $12 million | Builds a database designed for AI agents |
CTech Data reads the pattern as investors funding the infrastructure around AI deployment rather than applications built on top of it. Olam's observation is that these valuations assume enterprises keep deploying agents at the current pace, and the September data does not test that assumption.
Israeli cybersecurity companies already sell into U.S. security infrastructure, which Olam's report on the Israeli cybersecurity footprint in America covers. Olam's earlier report on Florida-Israel cybersecurity funding follows the same companies into Florida.
Which sectors outside AI and cyber raised large rounds?
Defense, HR software, construction software and consumer security also raised rounds of at least $40 million in September. Salesforce led a $166 million round in HiBob at a $3.5 billion valuation. Buildots raised $130 million at nearly $1 billion as its AI system is used on data center construction projects.
Guardio raised $40 million at a $1.1 billion valuation after passing one million paying customers and $150 million in annual recurring revenue. In defense, Covenant emerged from stealth with $250 million, and AITAN raised $41 million for combat-drone technology. Healthcare rounds were smaller: UltraSight raised $24 million and FIZE Medical raised $20 million.
Where did the smaller September rounds go?
Many rounds under $100 million went to companies that protect data, secure agents or sell software to a single industry. MIND raised a $72 million Series B that tripled its valuation to $300 million, and CTech Data reports the data-loss-prevention company reached a $10 million annual revenue run rate 18 months after it began selling. Huskeys raised $27 million, led by Blackstone, for an AI layer on web application firewalls.
Industry software also drew checks. HyperGuest raised $25 million from Apax for a platform that connects hotels with travel companies and AI agents, and the company has processed more than $1 billion in transactions. Wint raised a $36 million Series D for water-leak detection in buildings, and says its platform helped prevent about $100 million in damage in 2025. Loora, an AI English-learning app, raised $22 million and reports more than 15 million users.
Rig Security shows how closely the agent theme tracks Israel's security talent. Guy Kozliner, who worked on the team of Wiz co-founder Ami Luttwak, raised a $12 million seed to build a platform that separates AI agents from the people whose identities they use. CTech's list covers only announced rounds above $5 million, so pre-seed activity does not appear in these totals.
What should readers watch after September's mega-rounds?
Readers tracking Israeli startup funding should watch two things: whether five deals again take most of the dollars in October, and whether Cyera chooses an IPO or a sale. Calcalist frames that choice as a fork between the Wiz route, a sale to a technology giant, and a public listing.
September's capital followed companies that sell to enterprises deploying AI agents, while the other 23 rounds averaged about $38 million. A $2.77 billion headline total describes five companies far better than it describes the typical Israeli startup.
How we report: Olam stories draw on public filings, company disclosures and named sources, checked by our editors. Read our methodology · Corrections
