Israeli startups raise USD1.5b in July as AI infrastructure draws capital
Israeli startups announced 29 funding rounds totaling approximately USD 1.5 billion in July, making it one of the strongest fundraising months of 2026 and underscoring continued investor appetite for companies building AI-related infrastructure.
The month’s largest round was Xsight Labs’ USD 300 million financing at a USD 2.8 billion valuation, as global demand grows for networking chips that can connect the large computing clusters powering artificial intelligence. Glow also raised USD 180 million at a USD 1.2 billion valuation, while Onyx raised USD 113 million, Neo secured USD 100 million, and groundcover raised USD 100 million.
Cybersecurity dominated July’s funding activity, with investors backing companies focused on securing AI agents, enterprise identities, AI endpoints, and autonomous security operations. The trend also extended into enterprise software, where companies including Aligned, Encore AI, Harmony, Alta, and Modus are building AI systems designed to automate complex knowledge work.
Funding also flowed into infrastructure, robotics, defense technology, fintech, and food-tech companies, reflecting how AI is increasingly becoming the core technology layer across Israel’s startup ecosystem rather than a standalone sector.
Read more in Calcalist.
