Israeli startups raise $1b in January 2026, led by cybersecurity

Israeli startups raised over US$1 billion in January, marking the strongest start to the year since 2022, according to CTech.

Cybersecurity companies led the funding, with Upwind securing US$250 million in a series B round at a US$1.5 billion valuation, reporting significant revenue growth and clients including Siemens and Roku.

Claroty raised US$150 million at a US$3 billion valuation amid increasing cyber threats to infrastructure, while Torq attracted US$140 million at a US$1.2 billion valuation.

Newer firms like Novee and Spirit also secured sizable investments, with Novee raising US$51.5 million and Spirit valued at US$400 million after a US$50 million round.

Other sectors reported funding as well, including fintech, real estate, and proptech, with Datarails raising US$70 million and Atlas Invest securing US$25 million.

The funding activity suggests a robust start to 2026 across multiple industries in Israel.

🔗 Source: Calcalist

🧠 Food for thought

Implications, context, and why it matters.

The 2026 funding boom follows record 2025 M&A and tighter capital concentration

A strong start to 2026 follows record exit activity in 2025. Israeli tech reached US$71 billion in mergers and acquisitions (M&A) deals in the first three quarters of 2025, nearly five times higher than in 2024 1.
Private funding shifted toward bigger checks. The median round size grew 50% year over year while the number of transactions declined by 22% 1.
Cybersecurity and AI startups pulled in about 70% of the US$15.6 billion raised in 2025 2. Investors placed most of their money in a narrow set of themes.
That focus helped pave the way for large later-stage rounds at companies like Upwind and Claroty.

Israeli cyber firms are reshaping how security teams operate worldwide

Israel’s funding surge ran against the global pullback. Overall cybersecurity investment in 2025 was 66% below its 2022 peak 3.
Companies drawing capital, like Torq with its US$140 million round, are building AI-driven hyper-automation, which uses software to automatically handle repetitive security tasks 4. Many enterprises are moving away from manual security processes.
Global venture capital firms (VCs) became the leading source of seed funding (early-stage financing for new startups) for Israeli cybersecurity companies for the first time in 2025, according to YL Ventures’ “State of the Cyber Nation” report 5.
Foreign investors increasingly treat Israel as a primary source of companies driving shifts in global security operations.