Israel Startup Funding: Israeli startups closed 28 funding rounds during September 2026, with investors concentrating heavily on cybersecurity, enterprise AI and technologies designed to support autonomous AI agents. Wonderful, Cyera, Island, Upwind and Covenant accounted for nearly 70% of the month’s total investment.

The Israeli tech scene witnessed an inflow of around $2.77 billion into startups in September 2026; however, the breakdown of investments reveals more details about the situation.

Out of 28 rounds of financing, five firms received $1.9 billion together, accounting for almost 69% of the investments made in September. In the rest 23 rounds, an amount of around $870 million was raised by other startups.

Cybersecurity and artificial intelligence featured prominently throughout the month, particularly among businesses developing technologies to help enterprises adopt, operate and secure autonomous AI agents.

Five Mega-Rounds Drive September’s Funding Activity

Enterprise AI startup Wonderful recorded September’s largest transaction, raising $550 million on September 2 at a valuation of $5 billion. The investment came just six months after the company secured $150 million at a $2 billion valuation.

Founded in early 2025, Wonderful has raised more than $800 million to date, expanded into over 35 markets and grown its workforce to approximately 650 employees.

Cybersecurity company Cyera followed with a $400 million investment from Goldman Sachs on September 22. The transaction extended its Series G round, bringing its total funding raised in 2026 to $1.4 billion and pushing its valuation beyond $12 billion.

Island secured another $400 million on September 24, reaching a valuation of $6.4 billion as it expands its enterprise browser technology into a broader control platform for employees and AI agents.

Cloud security company Upwind added $300 million, taking its valuation to $3.8 billion. The figure represents a substantial increase from the $1.5 billion valuation recorded during its $250 million funding round in January.

Completing the five largest transactions was defense technology startup Covenant, which emerged from stealth with $250 million at a valuation exceeding $1 billion.

Together, these investments established the financial weight of September’s largest deals, while funding activity continued across several other technology segments.

Cybersecurity Investors Look Beyond Traditional Protection Tools

One of September’s recurring investment themes was the growing need to secure enterprise environments where AI agents operate alongside human employees.

Several startups attracted funding for technologies addressing this changing security landscape.

Reco raised $55 million with backing from AT&T to expand its security platform as businesses introduce more AI agents into their operations. AIR Security secured $50 million to develop what it describes as a firewall for AI agents.

Cymphony received $25 million in Series A funding for a platform focused on mapping identities, permissions, information and behaviour across people and AI systems.

Meanwhile, Blackstone led a $27 million investment in Huskeys, which is developing an agentic AI layer for web application firewalls.

Consumer cybersecurity also attracted investor attention. Guardio secured $40 million at a valuation of $1.1 billion. The company reported surpassing one million paying customers and reaching $150 million in annual recurring revenue.

The range of transactions illustrates how cybersecurity investment is extending beyond conventional protection tools into technologies designed around the operational demands of AI adoption.

AI Agents Emerge as a Common Thread Across Industries

The emphasis on autonomous AI systems was not restricted to cybersecurity.

Euno raised $23 million to develop technology that allows AI agents to access and use organisational knowledge inside large enterprises. Keewano secured $12 million in seed funding to build a database designed for AI agents working with complex information.

Legal technology startup Chamelio also raised $26 million in Series A funding to develop AI agents capable of handling routine legal workflows while directing matters requiring human judgement for further review.

Elsewhere, DataAgent emerged from stealth with a $10 million pre-seed round to develop self-healing infrastructure powered by autonomous agents.

The activity highlights an emerging focus within September’s funding announcements: investment is flowing not only towards businesses offering AI-powered applications, but also towards the infrastructure required to make autonomous systems practical in enterprise settings.

HiBob and Buildots Secure Major Investments Outside the Five Largest Deals

September’s fundraising activity extended into human resources technology, construction software and data security.

Salesforce led a $166 million investment in HR technology company HiBob, valuing the business at $3.5 billion. Its workforce management platform provides organisational data and permissions that can support the deployment of AI tools within companies.

The Israeli construction technology firm, Buildots, managed to raise $130 million at an estimated value near $1 billion. The company’s artificial intelligence platform has become more common in large data center constructions since there are serious consequences associated with delay.

Data security company MIND raised $72 million in Series B funding, tripling its valuation to $300 million. The company has raised $112 million to date and reached a $10 million annual revenue run rate within 18 months of beginning commercial sales.

These investments added substantial capital to September’s overall total beyond the five largest transactions.

Defence and Healthcare Startups Also Draw Capital

Although software and cybersecurity attracted considerable attention, September also delivered notable funding rounds for companies developing physical technologies.

Israeli defence startup AITAN raised $41 million to support the international expansion of its combat-drone technology.

Covenant, meanwhile, secured its previously noted $250 million investment after operating largely outside public view since its founding in 2024. The company is developing Anthem, a long-range, heavy-payload weapon, with serial production expected to begin in 2027.

Healthcare technology companies also featured in the month’s investment activity.

UltraSight raised $24 million for its AI-powered cardiac imaging platform, which enables trained medical personnel to perform echocardiograms. FIZE Medical secured $20 million to advance its AI-guided intensive care platform, designed to predict fluid-related risks among critically ill patients.

Other funding announcements included Wint’s $36 million round for AI-driven water-risk detection, HyperGuest’s $25 million investment from Apax, Loora’s $22 million raise for its AI English-learning platform, and Particula’s $15 million round to support the international expansion of its smart toys.

What September’s $2.77 Billion Funding Figure Reveals

There are two important trends in September investment activity within Israel’s startup industry.

Firstly, this trend is related to the clustering of funding within few firms. Five deals have made up nearly seven in every ten dollars raised in September, which makes their share very important for the total amount.

The second is the variety of businesses securing investment around enterprise AI adoption. From identity management and cloud security to databases, legal workflows and HR software, several startups are developing products intended to support a workplace where autonomous AI systems perform increasingly complex tasks.

As September came to an end, a total amount of $2.77 billion was generated through 28 rounds that all exhibited large investment sizes and continued funding in various technology industries.

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