This week in Israeli Venture: A week of contradictions – $1.1 billion raised, 60% announced layoffs

June 5, 2026 6 curated links

Israeli tech had a blockbuster week on paper: more than $1.1 billion in announced funding in less than a week, led by mega-rounds in AI infrastructure, cybersecurity, observability, data-center cooling and networking. But the headline number only tells part of the story. This was not a broad recovery where every startup suddenly has access to capital again. It was a highly concentrated week, with investors clustering around companies that sit directly on the AI buildout: the networks, data security, monitoring, cooling, governance and robotics layers required to make AI work at scale.

Deals Ctech

Cyera raises $300 million at $12 billion valuation, extending its rapid ascent

In January, Cyera raised $400 million at a $9 billion valuation after being valued at $6 billion in 2025 and $3 billion in 2024.

Deals Reuters

DriveNets secures $410 million in latest funding round, AMD joins as investor ($8.5 billion valuation)

The Israeli networking company says it is cash-flow positive with over $1B in backlog as AI demand accelerates.

Deals Techcrunch

Coralogix raises $200M as observability becomes AI-native

Observability is being re-priced for the AI age. If agents write, deploy and operate more code, the monitoring layer becomes more important, not more commoditised.

Deals Ctech

ZutaCore raises $100M to cool the AI data-center boom

The AI infrastructure stack is no longer just chips and cloud. Power, heat and data-center efficiency are now strategic constraints, and ZutaCore is a good example of how “deep infrastructure” can become venture-scale when AI demand changes the physics of computing.

Markets VC Cafe

Capital Is Concentrating: What 13 Israeli $100M+ Rounds Tell Us About the 2026 Market

he next wave of Israeli winners may not look like the SaaS companies of the last decade. They may be the companies powering the AI economy, securing it, cooling it, connecting it and defending it.

Policy Israel Tech Insider

The $400 Drone Bomb and the $19B Defense Export Boom

Israel exported $19.2 billion worth of military technology last year. Meanwhile, Israeli soldiers in Lebanon are desperately defending themselves against drones that cost less than a night at a standard Tel Aviv hotel.