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AI, cybersecurity boost $1.6b Israeli startup funding in Dec 2025
Israeli startups raised US$1.6 billion through 22 funding rounds in December 2025, making it the strongest month for venture funding in the country since 2022.
The surge was driven by large deals in cybersecurity and AI, with Cyera, a data security company, raising US$400 million in a Blackstone-led round at a US$9 billion valuation.
Eon raised US$300 million in series D funding at a US$4 billion valuation, bringing its total funding to over US$500 million since emerging from stealth last year.
Other notable cybersecurity deals include Vega’s US$120 million series B round, valuing the company at US$700 million, and 7AI’s US$130 million series A just ten months after exiting stealth.
Zafran secured US$60 million, doubling its valuation, while Act Security completed a US$40 million series A only four months after its US$20 million seed round.
In healthcare, Syremis raised US$165 million to develop treatments for schizophrenia and other severe mental illnesses.
🔗 Source: Calcalist
🧠 Food for thought
Implications, context, and why it matters.
December’s funding surge masks uneven recovery across stages
- December saw US$1.6 billion across 22 deals, but a few giant rounds drive the total. Cyera secured US$400 million and Eon closed US$300 million, covering 44% of the month 1.
- Cybersecurity leads early and late-stage rounds. Repeat founders with seasoned teams get high valuations. Vega hit US$700 million in series B. 7AI raised US$130 million ten months after stealth (after operating in stealth mode, i.e., building quietly before public launch) 1.
- This concentration means investors favor proven teams in defensive tech. The pattern differs from 2021 to 2022, when smaller deals spread across more categories.
Cloud and channel partners can target new expansion needs
- Six firms in cybersecurity and AI secured large rounds in December. They will speed US and EU entry through partner networks (third-party resellers and systems integrators) with larger sales teams. The group spans Cyera, Eon, and Vega. It also includes 7AI, Zafran, and Act Security 1.
- Managed security service providers plus channel firms (resellers and systems integrators) should build prospect lists that match these companies’ go-to-market (GTM) push. Funded startups often launch partner programs within 3 to 6 months of a big round.
- Cloud infrastructure providers can prep for AI workloads at Eon (US$300 million raised). Graphics processing unit (GPU) sellers can do the same for 7AI (US$130 million raised). Both will need heavy compute to scale their platforms 1.
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