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Israeli tech startups raise $775m in February funding
Israeli tech startups raised US$775 million across 23 disclosed funding rounds in February, the strongest for venture funding since 2022.
February lacked mega-rounds but saw broad capital allocation across sectors essential to the next phase of AI adoption, including cybersecurity, enterprise data infrastructure, satellite networks, and biotech.
The largest deal was Tomorrow.io’s US$175 million round at a valuation above US$1 billion to fund its DeepSky satellite constellation, aimed at replacing aging weather infrastructure.
Cybersecurity led with Vega raising US$120 million in a series B, bringing its total to US$185 million and valuing it at about US$800 million.
Significant contributions also came from cybersecurity firms like Gambit and Orion, alongside enterprise data startups such as Guidde and Nimble, which collectively raised over $200 million.
🔗 Source: Calcalist
🧠 Food for thought
Implications, context, and why it matters.
February funding spreads out after 2025’s concentrated bets
- February money went to a wider mix of startups after a year where cash clustered in fewer places.
- In 2025, Israeli tech firms raised $15.6 billion in private funding, yet the deal count fell to a decade low 1.
- Fewer, larger rounds drove that shift. Mega-rounds made up about 50% of funding, lifting the median private deal to a record $10 million 2.
- February had no mega-rounds. Funding landed in areas tied to the next wave of AI adoption, including cybersecurity, enterprise data infrastructure, satellite networks, and biotech. That spread may mean investors are looking again at more early and mid-stage firms.
Cybersecurity funding rides bigger rounds and a market that is growing up
- A steady stream of cybersecurity deals fits a broader run, with the sector raising $4.1 billion in 2025 2.
- The median cybersecurity deal reached $20 million in 2025, twice the business software median 2.
- Early-stage activity also picked up. Seed rounds rose 97% from 2023 to 2025 3.
- Buyers included Check Point; Cato Networks; Cyera; Pentera; and Orca Security. Together they bought 12 local startups, which suggests consolidation is underway 3.
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