In August, Israeli startups attracted over $577.5 million through 12 funding rounds, alongside a 13th undisclosed investment in cybersecurity firm Above. This surge is noteworthy as August is typically one of the slowest months for tech investments in Israel due to seasonal holidays. Notably, August 2026 marked the best performance for Israeli startups in this month since 2022.
The funding activity was largely influenced by a focal theme: the escalating utilization of artificial intelligence (AI) is introducing new challenges, and investors are increasingly inclined to support Israeli firms capable of creating the security infrastructure necessary to tackle these issues.
Out of the 13 funding announcements, many directly targeted the risks associated with AI. Startups sought capital to enhance the security of AI models, protect against AI-driven cyberattacks, monitor operations in production settings, and facilitate the transition of AI projects from experimental stages to full deployment.
Leading the fundraising efforts was Alice, which secured $140 million, valuing the company between $700 million and $800 million. Alice leverages extensive knowledge of online malicious activities to establish itself in a burgeoning security market focused on AI models and agents.
The second-largest funding round was Zenity’s Series C, which raised $125 million, bringing the total funding for this Israeli cybersecurity firm to $185 million as it pushes forward with global market expansion. Zenity is concentrated on securing autonomous AI agents, responding to the growing trend where enterprises deploy systems with reduced human oversight.
Both Oligo Security and Corma raised $60 million each but approached AI-related security challenges from distinct angles. Oligo emphasizes runtime security, aiming to protect applications during operation, arguing that AI-enhanced attacks enable hackers to exploit vulnerabilities faster than companies can repair them. Conversely, Corma's new Seed round is aimed at creating a foundational model for defensive cybersecurity, betting on the need for specialized AI systems to counteract the advanced capabilities of general-purpose AI.
In another notable milestone, travel fintech Faye raised $50 million in a Series C round, achieving an estimated valuation of $500 million. The company aims to broaden its global presence while employing AI to streamline the insurance claims process for what it terms the next wave of travel protection solutions.
QuantHealth managed to secure $45 million in a Series B to enhance its technology, designed to apply AI simulations in clinical trials. The company reports conducting simulations for over 600 trials, facilitating drugmakers in testing their strategies before committing substantial financial resources.
Remepy also made headlines by raising $36 million in a Series A to advance its AI-driven Hybridopa treatment for Parkinson’s disease, which has demonstrated improvements in both motor and non-motor symptoms during Phase IIa trials. Additionally, Remepy is exploring new avenues in rare tumors through a partnership with Merck.
Several smaller funding rounds in August further illustrated the burgeoning need for AI security solutions. Attestable raised $20 million supported by alumni from prominent organizations, advocating the use of zero-knowledge cryptography for enhanced verification processes within increasingly powerful AI systems.
June AI garnered $20 million in a pre-Seed funding, drawing interest from Marc Benioff and Michael Dell. The firm, founded by the team behind Bonobo AI, focuses on developing AI agents aimed at automating software implementation, a critical hurdle for enterprise AI adoption.
Lastly, Arrakis Security raised $8 million in Seed funding, emphasizing the necessity for monitoring AI agents post-access and addressing security for autonomous systems in enterprises.
For a complete list of August’s funding deals, including those over $5 million that were officially announced, refer below.
