I’ve been seeing a significant surge in funding for Israeli startups, often raised in stealth mode. It feels a bit like 2021 again, with massive amounts of VC money aggressively chasing high-quality investments in the Israeli tech ecosystem. However, this time, the capital is overwhelmingly flowing to experienced Israeli teams with a clear vision.
This conviction is driven by top-tier US VCs who are accelerating their investment pace in the region. This current wave of aggressive fundraising is being propelled by a long list of American funds, including:
- Bessemer Venture Partners, which has made a record-breaking 10 new investments in Israel since the beginning of the year, including major rounds in Ramiddo and Zig (founded by the IronSource founders).
- Lightspeed, which is known for being aggressive and has sometimes offered to double term sheets received by promising founders.
- Sequoia and Greylock, which have stepped up their early-stage investments in Israel and appointed Israeli partners during the recent conflict.
- Lux Capital, which began investing in Israel in 2024 and has already made four significant investments.
Recent Mega-Rounds & Stealth Successes
In the past couple of weeks, Israeli startups raise over $800 million in a series of mega deals as investor confidence surges. It seems like recently, companies have been announcing one giant funding round after another:
- Tenzai secured a $75M seed round. Founders Pavel Gurvich and his partners, who previously sold Guardicore for $600M, originally planned to raise only $32M. However, after closing the initial funding led by Greylock and Battery, they were flooded with more offers and closed an additional $43M extension led by Lux Capital at a much higher valuation.
- Majestic Labs AI raised $100M from stealth to make servers more efficient with AI.
- Wonderful raised $100M series A, just weeks after raising a $34 million seed round.
- Sweet Security raised $75M series B
In addition to these announced rounds, there are numerous stealth rounds that have not yet been officially disclosed:
- The company Eon.io (Eon) is raising an additional round at a valuation of $4 billion. This startup was founded by Ofir Erlich, who previously founded CloudEndure and sold it to AWS.
- Accel and Greylock funds invested in the new startup of Shai Morag. Shai Morag is the ex-Chief Product Officer of Tenable and former CEO and co-founder of Ermetic. His company raised $60M while in stealth.
- Cyberstarts and Lightspeed invested in the new startup of Yossi Torati, a former executive at Sygnia. Yossi Torati raised tens of millions while in stealth.
- Bessemer and Norwest invested in the new startup of Zerto founders. Ziv and Oded Kedem sold Zerto to HPE before starting this new company in stealth.
- Greylock is leading the investment in the new startup of Nir Zuk. Nir Zuk is the founder and driving force behind Palo Alto Networks. His new startup in stealth has already attracted funding from Greylock.
- Vega, a cybersecurity startup that recently came out of stealth with $65M in funding is rumoured to be raising tens of millions more, just a couple of months later
The Message to Founders is Clear
Fresh out of our new fund announcement last week at Remagine Ventures, we are excited by this concentration of talent and market validation. We are actively looking to back the next wave of ambitious Israeli founders building significant companies in stealth mode at the very beginning of their journey.
While not every company raising money will succeed, as is always the case in the startup world, the message to founders is clear: If you are building groundbreaking technology, the capital is here for you. There’s never been a more exciting time to build.
If you’d like to get an Israeli funding digest in your inbox every Friday, sign up to the #FIRGUN newsletter on Linkedin.
He is a former General Partner at Google Ventures (GV) in Europe, former head of Google for Entrepreneurs in Europe, and founding head of Campus London, Google's first startup hub. Eze writes on Israeli tech, venture capital, artificial intelligence, and founder strategy.
He is also the founder of Techbikers, a nonprofit that brings together the startup ecosystem on cycling challenges in support of Room to Read.
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