Cyera agrees to acquire Oasis Security for approximately $1 billion
Israeli cybersecurity unicorn Cyera signed an agreement to acquire Oasis Security, which secures non-human identities such as applications, service accounts and AI agents. The majority of the consideration is expected to be paid in cash, with Oasis continuing to operate as an independent unit. The transaction is particularly striking because Oasis was founded less than four years ago. Its approximately 170 employees are expected to receive more than $100 million through their stock options. Why it matters: Non-human identity is rapidly becoming a strategic category as enterprises deploy thousands of autonomous agents. The acquisition also shows a new stage of maturity in Israeli tech: well-capitalised Israeli scaleups are increasingly acting as consolidators rather than waiting to be acquired themselves.
Xsight Labs raises $300 million at a $2.8 billion valuation
Xsight Labs raised more than $300 million in a round led by Fidelity, with participation from investors including Intel Capital, Battery Ventures, T. Rowe Price and Key1 Capital. The company develops networking chips and data-processing units that move information between servers inside AI data centres. Its technology has already been selected by global network operators, including SpaceX’s Starlink, and is being evaluated by major hyperscalers. Why it matters: AI performance increasingly depends on data movement, memory and networking—not simply access to GPUs. Xsight is another example of Israel’s semiconductor expertise becoming strategically important as the AI bottleneck moves deeper into the infrastructure stack.
Onyx Security raises $113 million four months after emerging from stealth
Onyx Security completed a $113 million Series B led by Bessemer Venture Partners, bringing its total funding to $153 million. The company helps enterprises discover, monitor and govern the actions of third-party and internally developed AI agents. Onyx says its platform can inspect an agent’s reasoning process, identify unintended or malicious behaviour and intervene before harmful actions are completed. Why it matters: Enterprises are moving from testing copilots to deploying agents capable of taking actions. That transition creates a new control layer around permissions, behaviour, accountability and governance—an area where Israeli cybersecurity companies are moving quickly.
The government launches a NIS 1 billion fast-track programme for young tech companies
The Israel Innovation Authority and Ministry of Finance launched a NIS 1 billion funding programme for startups and early-stage growth companies affected by the strengthening shekel. Many Israeli startups raise and generate revenue in dollars while paying salaries and other operating costs in shekels. The currency movement has therefore increased dollar-denominated burn and shortened runway, particularly for younger companies without substantial revenue. Why it matters: The programme offers useful support, but it does not remove the underlying need for founders to manage burn conservatively. Startups should plan for longer fundraising cycles and avoid assuming that bridge capital will be available when needed.
IBM and Qedma report a quantum-computing breakthrough
IBM and Israeli quantum startup Qedma reported a result that surpassed the performance of a classical supercomputer using approximately 700,000 processor cores. Qedma develops software designed to suppress errors and improve the usefulness of quantum computers. Why it matters: Israel’s strength is broadening beyond software and cybersecurity into semiconductors, quantum, defence and physical AI. These categories require more capital and patience, but they can also produce deeper technical moats than rapidly replicable application software.
Aleph launches its fifth fund and doubles down on Israel
Aleph announced Fund V with a deliberately simple message: “more of the same.” The firm will continue backing Israeli founders building global technology companies rather than changing its geographic or investment strategy. Why it matters: Fundraising remains difficult for many Israeli venture firms, particularly emerging managers. A new fund from an established early-stage investor is therefore an encouraging signal of continued institutional confidence in the next generation of Israeli founders.
