Act, a new cybersecurity startup founded by former Medigate executives, has raised US$20 million in seed funding from Team8 and US venture capital firm Bessemer Venture Partners.

The company, which is still in stealth mode, is led by Jonathan Langer, Itay Kirshenbaum, Stephen Goldberg, and Ilai Fallach.

Medigate, founded by Jonathan Langer, Itay Kirshenbaum, and Pini Pinhasov, was acquired by cybersecurity firm Claroty for around US$400 million in 2021.

Act is developing tools designed to help security teams reduce risks in cloud environments.

The startup has not yet disclosed specific details about its product or launch timeline.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Successful cybersecurity exits create experienced teams that attract premium funding

ACT’s rapid $20 million seed round demonstrates how proven cybersecurity entrepreneurs can leverage past success to secure substantial early-stage funding.

The founders previously built Medigate with just $50 million in total funding before selling to Claroty for approximately $400 million in 20211. This 8x return on invested capital created a track record that likely made their new venture highly attractive to investors like Team8 and Bessemer.

The pattern reflects a broader trend where successful cybersecurity exits generate experienced leadership teams who understand both technical execution and market dynamics. These serial entrepreneurs often secure larger initial rounds because investors view them as lower-risk bets with proven ability to build valuable companies.

The transition from healthcare IoT security at Medigate to cloud security at ACT also shows how experienced teams can pivot their domain expertise to address adjacent market needs.

2️⃣ Rising cybersecurity funding creates higher stakes for new ventures

ACT’s $20 million seed round reflects the increasing capital requirements in today’s cybersecurity market, where building competitive solutions demands substantial upfront investment.

Cybersecurity funding jumped 25% to $4.2 billion in Q2 2025, with average deal sizes growing significantly as the number of funding rounds remained steady at 1002. This trend indicates investors are writing larger checks but becoming more selective about which companies receive funding.

The shift toward higher funding requirements is evident across the sector, where top cybersecurity startups now average $352.2 million in total funding3. This represents a significant increase from earlier generations of cybersecurity companies that required much less capital to reach market leadership positions.