Israel’s technology sector raised more than $1.15 billion across 28 funding rounds in March, even as the country spent the entire month at war with Iran following the outbreak of hostilities on February 28.
The figures point to a striking continuity in investor appetite, with capital continuing to flow into early- and growth-stage startups despite geopolitical uncertainty. The bulk of the funding was concentrated in artificial intelligence and cybersecurity.
Over the first quarter of 2026, Israeli high-tech companies raised over $3 billion, marking a 34% increase compared to the same period in 2025.
Oasis Security raised $120 million in a Series B round aimed at securing machine identities in March, while ScaleOps secured $130 million at an $800 million valuation to address inefficiencies in managing cloud and GPU resources amid surging demand for AI compute. Wonderful, an enterprise AI agent platform founded in 2025, raised $150 million at a $2 billion valuation, bringing its total funding to more than $285 million in just eight months.
Cybersecurity remained dominant but evolved in focus. Rather than traditional perimeter defense, many companies are targeting the risks created by autonomous systems and AI-driven workflows. Onyx Security raised $35 million to control AI agents within organizations, while Jazz secured $43 million to address data leaks in AI environments. Above Security, just eight months old and with only 10 employees, raised $43 million to tackle insider threats using AI agents.
The convergence of AI and security was evident across multiple rounds. Linx Security raised $50 million to address identity risks as non-human users proliferate, while Native secured $31 million to simplify multi-cloud security. Cylake, a new venture from Palo Alto Networks founder Nir Zuk, emerged with $45 million in seed funding to build an AI-driven platform for organizations unable to rely on public cloud infrastructure.
Elsewhere, startups focused on the infrastructure underpinning AI adoption. Niv-AI raised $12 million to optimize electricity usage in data centers, while Qodo secured $70 million to address the growing gap between rapid code generation and slower validation processes. Voltify, which raised $30 million in seed funding, is targeting the electrification of rail infrastructure, positioning itself as a “Tesla of rail” in an $11 billion diesel market.
Beyond core infrastructure, AI agents are increasingly being applied to industry-specific challenges. Notch raised $30 million to automate customer experience in regulated sectors such as insurance and healthcare, while Carefam secured $10.5 million to tackle staffing shortages in hospitals using conversational AI. In gaming, Sett raised $30 million to automate marketing and user acquisition, and in urban mobility, NoTraffic raised $90 million following rapid expansion in the United States.
Healthcare and life sciences also featured, albeit on a smaller scale. Scala Biodesign raised $16 million to accelerate protein engineering using AI, while Kailo Pharma is seeking to redefine PTSD treatment through a novel brain mechanism designed to weaken traumatic memories.
See the full list of March’s funding rounds below. (The list includes all officially announced rounds above $5 million.)
The Israeli startup aims to cut years from protein engineering timelines
The Israeli startup targets the fast-growing identity security market as AI agents and non-human users multiply, adding complexity to how organizations manage access and risk
The Israeli startup targets $11 billion diesel market with in-motion charging technology
AI-driven system targets inefficiencies in legacy firewall technology
The Israeli startup targets inefficiencies in how enterprises manage cloud and GPU resources
The Israeli startup targets the growing gap between faster code generation and slower validation
The Israeli startup targets billions spent on user acquisition with agent-based automation
The platform enables security teams to search video using natural language instead of predefined rules
The Israeli startup targets highly regulated industries from insurance to healthcare
The Israeli company targets real-time control of urban intersections as congestion worsens
Founded after an Iranian cyberattack, the company aims to cut response times from months to minutes
New investment comes just two months after $250 million round, signaling continued investor confidence in AI-driven cloud security
Founded by serial entrepreneurs Aviv Nahum and Amir Boldo, Above Security is betting AI agents can finally crack insider threats as enterprises struggle with rising internal risk
Kailo Pharma’s approach aims to weaken traumatic memories without affecting normal recall
The partnership will integrate Clover’s AI-driven security tools into ServiceNow’s enterprise software platform
The Israeli startup targets growing risks as machine identities vastly outnumber humans across enterprises
The Israeli startup aims to secure applications at runtime as threats accelerate
The Israeli startup aims to solve AI infrastructure bottlenecks by optimizing electricity use in real time
The Israeli startup aims to help enterprises fully utilize built-in cloud protections
The Israeli startup develops a platform to secure and manage AI systems as they become integral to business operations
The enterprise AI agent platform, founded in 2025, will scale headcount from 350 to 900 by year-end and expand deployments across telecom, finance, healthcare, and manufacturing in over 30 countries
The Israeli startup transforms computers into active AI security agents running real-time risk analysis
The AI startup deploys conversational agents to address staffing shortages and HR bottlenecks in hospitals and care facilities
The Israeli startup argues traditional DLP systems struggle to handle AI-driven data risks
The new platform predicts product success before launch and builds brands using AI agents and financing
Zuk founded the company with Wilson Xu, a longtime Palo Alto Networks engineering leader, and Ehud (Udi) Shamir, co-founder of SentinelOne. The startup is developing an AI-driven security platform designed for organizations that cannot rely on public cloud infrastructure
The Israeli startup aims to close the growing gap between AI-powered attackers and slow manual patching
The Israeli startup founded by former Siemplify executives targets operational gaps in SOC infrastructure