Israeli Tech’s August Money Rush: AI Security Leads the Way
Israeli startups and venture firms pulled in hundreds of millions of dollars in August, while two major acquisitions put almost $3 billion on the table. Across the deals, one theme stood out: the race to secure and build the infrastructure for increasingly autonomous AI
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August brought a substantial wave of capital into Israeli technology, spanning venture funds, cybersecurity, AI, semiconductors and digital health — as well as two major exits.
The biggest deal was Visa’s agreement to acquire Israeli-founded BioCatch, which uses AI and behavioral intelligence to detect financial fraud, for $2.4 billion in cash. Its technology analyzes signals such as typing patterns, touch gestures, device behavior and network activity to identify threats including account takeovers, scams and fraudulent account applications. BioCatch protects more than 760 million users across 1.8 billion devices.
Munich Re added another major exit, agreeing to acquire Israeli-founded At-Bay for $575 million. The company combines cyber insurance with continuous cybersecurity monitoring, helping small and midsize businesses identify vulnerabilities and reduce cyber risk. At-Bay has grown into a top-10 U.S. cyber insurer.
On the venture side, Team8 raised $365 million, including $265 million for its third fund and more than $100 million for follow-on investments in existing portfolio companies. The firm invests in startups across cybersecurity, software infrastructure, fintech and digital health, with particular interest in the infrastructure needed to make enterprise AI usable and secure. Team8’s research found that 97% of organizations have begun adopting AI agents and 80% are already running them in production, while confidence in securing them remains low.
That concern was reflected across several of August’s largest funding rounds. Alice, an AI security company, raised $140 million, taking its total funding to $280 million. It tests AI models and agents for vulnerabilities such as jailbreaks, prompt injection and unauthorized actions, and monitors deployed systems for security and compliance problems.
Zenity, which provides security and governance for enterprise AI agents, raised $125 million in Series C, while Onyx Security, which helps organizations discover, monitor and control AI agents, raised $113 million in Series B.
Corma raised $60 million to develop AI specifically for defensive cybersecurity, using a foundation model and AI agents to detect, investigate and respond to threats. OLIGO Security also raised $60 million, bringing its total funding to $140 million, for its runtime security platform, which identifies and blocks actual exploitation attempts while applications are running.
The month's other major financing came from Xsight Labs, which raised more than $300 million at a $2.8 billion valuation. The semiconductor company develops programmable networking chips designed to move data quickly and efficiently between servers in AI data centers.
QuantHealth raised $45 million in Series B for its AI platform, which allows pharmaceutical companies to simulate clinical trials and test different scenarios before committing resources. And Arrakis Security emerged from stealth with an $8 million seed round to help enterprises discover, monitor and govern autonomous AI agents.
Taken together, August’s deals suggest that investors are looking beyond AI capabilities themselves. Increasingly, the money is going toward the systems that allow AI to operate, connect, scale — and be controlled.