Israeli Startups Raised $872M in October, CTech Data Reports

October Funding Reaches $872 Million as Cyber and AI Lead Israeli Tech

Israeli startups and technology companies announced at least $872 million in funding across 14 financing rounds and expansions during October, according to CTech Data. The total reflects two distinct tiers of market activity: multi-hundred-million-dollar expansions by established category leaders on one side, and early-stage rounds for specialized infrastructure startups on the other.

The Tech TL;DR:
• Upwind and Capitolis drove $620 million of October’s total through major expansions and institutional backing.
• AI and cybersecurity startups secured capital to address autonomous agent security, cloud data protection, and model acceleration.
• Specialized sector applications closed rounds across robotics-based agricultural pollination, biotechnology, and drone software.

Upwind and Capitolis Capture the Month’s Largest Inflows

The month’s largest announcements came from two established companies that accounted for more than 70% of the total disclosed round value. Upwind expanded its cloud-security financing to $400 million at a valuation of $3.8 billion, a round initially reported in September that officially closed in October. Upwind’s valuation has more than doubled since January. Capitolis raised $220 million at a valuation of $1.9 billion, backed by major financial institutions including Citi, Bank of America, Nomura, Tradeweb, J.P. Morgan, and UBS. Capitolis is expanding into securities lending through its acquisition of eSecLending.

Cybersecurity Startups Target Autonomous Agents and Cloud Data

A substantial share of October activity concentrated on infrastructure and safeguards for enterprise AI adoption. Rein Security raised $25 million in a Series A round, reporting an eightfold revenue increase since January as businesses grapple with controlling AI agents executing tasks across systems. Mave raised $28 million in a Series A round led by Red Dot Capital Partners to investigate security alerts across existing tools without requiring centralized data collection. Modelyo secured $17 million to prevent sensitive information exposure while processing in the cloud, targeting governments, banks, and defense organizations.

Pluto Security emerged from stealth with $42 million in funding, founded in 2025 by veterans of Palo Alto Networks. The company focuses on securing AI tools and applications adopted by employees outside formal IT approval processes, reporting more than one million endpoints secured and over 40 enterprise customers.

Seed Investments and Specialized Applications Expand Across Sectors

Seed-stage and specialized enterprise rounds rounded out the month’s tally. Two Delta secured tens of millions of dollars in seed funding from Bill Ackman and Eric Schmidt to accelerate AI models and investigate why AI coding agents struggle with application maintenance. Zenzap raised $33 million in a Series A round to bring AI agents into workplace communications, recording over 40,000 automated workflows created on its platform. Bites raised $40 million in a Series A round to distribute training videos via WhatsApp and Microsoft Teams. enso raised $15 million for what it terms agentic growth hacking, bringing its total to $23 million.

Physical operations and life sciences also secured capital. BloomX raised $13 million in a Series A round for robotic pollination systems yielding average blueberry and avocado increases of about 20%. Undecimal Bio secured $18 million in seed funding for an AI-enabled RNA delivery platform. Phantom GI raised $5 million for an ostomy device deployable under local anesthesia. High Lander added $16 million through a strategic investment by UAE defense group EDGE to expand drone software into defense and homeland security applications.

Two Delta’s undisclosed seed total remains uncounted in the $872 million aggregate, leaving the final capital figure subject to upward revision as additional figures clear public disclosure.