Israeli Startups Raised $872 Million in October, Led by Cybersecurity and AI

Israeli startups and technology companies raised at least $872 million in October across 14 financing rounds and expansions, according to CTech Data. Cybersecurity and AI companies dominated the month's deal sheet — and two of them accounted for $620 million of the total.

Who closed the biggest rounds?

Upwind, a cloud-security company, expanded its financing to $400 million at a valuation of $3.8 billion. The round was initially reported in September at $300 million; the company officially announced the expanded figure in October. Upwind's valuation has more than doubled since January.

Fintech company Capitolis raised $220 million at a valuation of $1.9 billion, with backing from Citi, Bank of America, Nomura, Tradeweb, J.P. Morgan and UBS. The company is expanding into securities lending through its acquisition of eSecLending.

Takeaway: two established companies, not seed-stage bets, carried the month.

Note that the $872 million figure excludes an undisclosed amount raised by AI startup Two Delta, which secured tens of millions of dollars in seed funding. The October total also counts the full value of Upwind's round.

How is AI security driving the deal flow?

A substantial share of October's activity targeted the infrastructure and safeguards businesses need as they deploy increasingly autonomous systems.

• Rein Security raised $25 million in a Series A. The startup said its revenue has grown eightfold since January, and its platform now secures thousands of AI agents executing millions of actions.
• Mave raised $28 million in a Series A led by Red Dot Capital Partners, bringing total funding to $34 million. Mave builds AI tools that investigate security alerts across existing systems without requiring companies to centralize their data.
• Modelyo raised $17 million to protect sensitive information while it is processed in the cloud. Its technology targets governments, banks and defense companies, where data protection requirements can limit the use of external AI services.
• Pluto Security, founded in 2025 by Palo Alto Networks veterans, emerged from stealth with $42 million. The company secures AI tools that employees build or adopt outside formal IT approval. Pluto said it has secured more than one million endpoints, signed over 40 enterprise customers and is already generating millions of dollars in recurring revenue.

Two Delta, which drew seed investment from Bill Ackman and Eric Schmidt, is developing technology to accelerate AI models. Its research also examines why AI coding agents struggle to keep applications functioning as users add new features.

Which specialized applications attracted funding?

AI spread into narrower business use cases too. Zenzap raised $33 million in a Series A to bring AI agents into workplace communications; customers have already created more than 40,000 automated workflows through its platform, which connects team conversations with workplace tools.

Bites raised $40 million in a Series A to turn company procedures into short training videos for frontline workers, distributed via WhatsApp and Microsoft Teams. The company plans to expand in the United States and develop technology linking employee training to business outcomes.

enso, founded by RapidAPI co-founder Mickey Haslavsky, raised $15 million — $23 million in total — for what it calls "Agentic Growth Harming"-style agentic growth hacking, per the company's own framing of "Agentic Growth Hacking."

What about agriculture, medicine and defense?

• BloomX raised $13 million in a Series A for robotics- and AI-based pollination systems targeting blueberries and avocados. Growers using its technology have recorded average yield increases of about 20%. Total funding now stands at $20 million, with expansion planned in the U.S. and additional Latin American markets.
• Undecimal Bio, a spinout from Eleven Therapeutics, raised $18 million in seed funding. It is building an AI-enabled platform to deliver gene-silencing RNA treatments to cells beyond the liver, where RNA medicines have had their greatest success.
• Phantom GI raised $5 million to develop a device that creates an ostomy under local anesthesia — a potential alternative for bowel obstruction patients who cannot undergo conventional surgery.
• High Lander secured an additional $16 million through an expanded strategic investment by UAE defense group EDGE, bringing total funding to $30 million. The drone-software company manages drone fleets and air traffic coordination, and is extending its technology into defense and homeland security.

The pattern is clear: investors are paying premium valuations for companies that secure — and operationalize — the AI systems enterprises are already running.