Israeli cybersecurity keeps breaking records. According to data compiled by Calcalist's CTech, Israeli cybersecurity companies raised at least $2.425 billion in 26 disclosed rounds in the third quarter of 2026. That is about 46% of all global cybersecurity investment in the quarter, which according to Pinpoint Search Group reached $5.26 billion, the highest level since 2022.
Who raised
The quarter was led by two companies that raised $400 million each: Island, which develops a secure enterprise browser, and Cyera, which specializes in data security. Since the quarter ended, other large rounds have followed, including Upwind, which this week closed a $400 million round at a $3.8 billion valuation.
The money goes to AI security
According to the report, the wave is driven mainly by investor demand for companies that secure AI agents and AI infrastructure. As organizations give AI agents access to systems and data, an entirely new security field is emerging, and Israeli companies are at its forefront. Cathedral's intrusion into Anthropic's systems, revealed this week, shows how pressing the issue is.
Other figures too
Not every tracker arrives at the same number. A preliminary LeumiTech and IVC review estimated Israeli cyber funding in the quarter at more than $1.7 billion, over a third of all Israeli tech funding. The gap probably reflects different counting methods. Either way, the picture is clear: cybersecurity is now the biggest growth engine of Israeli tech.
The other side
Not everyone benefits from the wave. XM Cyber recently laid off most of its Israeli employees after CrowdStrike bought its technology, and small cybersecurity companies struggle to raise money as capital concentrates in a few large players.
