TEL AVIV, ISRAEL โ Israel’s technology sector has opened September with an extraordinary burst of investment, with Israeli and Israeli-founded startups announcing approximately US$1.4 billion in funding during the first three days of the month.
Four companies, Wonderful, Upwind, HiBob and Lyte, accounted for more than US$1.18 billion of the total, according to a Sept. 4 roundup published by Israeli technology and venture capital publication VC Cafe.
The funding surge was accompanied by acquisitions, public-market activity and the creation of a new US$250-million venture fund focused on Israeli startups, adding to evidence of continued international investor appetite for Israeli technology.
The opening days of September were already running at more than twice the US$577.5 million that VC Cafe reported Israeli startups raised during the entire month of August.
Separate figures compiled by CTech showed Israeli startups raising US$1.164 billion in just the first two days of September, nearly twice the US$585 million raised during all of September 2025.
The scale of the investment is particularly notable because it is spread across several of Israel’s strongest technology sectors, including artificial intelligence, cybersecurity, enterprise software, autonomous systems and defence technology.
Wonderful Leads With US$550 Million
The largest financing came from Wonderful, the Israeli-founded enterprise artificial intelligence company that raised US$550 million in a Series C round at a valuation of approximately US$5 billion.
The financing represents another dramatic increase in the company’s value following a previous round only months earlier.
Wonderful develops enterprise AI agents designed to perform customer-facing and operational tasks. Its technology is part of the rapidly expanding market for autonomous AI systems that can carry out complex business functions rather than simply respond to individual prompts.
The company’s rapid growth has made it one of the most closely watched Israeli-founded AI companies.
Wonderful reportedly grew from approximately US$1 million to a US$70-million revenue run rate in roughly one year and has expanded to about 650 employees. The company has said it expects its workforce to exceed 1,000.
Its latest financing alone represents nearly 40 percent of the approximately US$1.4 billion announced by Israeli and Israeli-founded startups during the opening days of September.
Upwind Reaches US$3.8-Billion Valuation
Israeli cloud-security company Upwind provided the second-largest financing of the period, raising US$300 million at an approximately US$3.8-billion valuation.
Bessemer Venture Partners and TCV led the round, with participation from other major technology investors.
Upwind develops technology that monitors cloud environments while applications are running, allowing organizations to identify and prioritize security threats based on their actual behaviour.
The company is increasingly positioning its technology around the security demands created by artificial intelligence infrastructure.
The new valuation represents a sharp increase for Upwind and places it among Israel’s most valuable privately held cybersecurity companies.
Wonderful and Upwind alone raised US$850 million.
HiBob And Lyte Add More Than US$330 Million
HiBob, the Israeli-founded company behind the Bob human-resources technology platform, raised another US$166 million.
Salesforce led the investment, valuing the company in the multibillion-dollar range.
Lyte added a further US$165 million. The company develops advanced perception technology intended to help autonomous machines interpret and interact with their physical surroundings.
Together, Wonderful, Upwind, HiBob and Lyte accounted for more than US$1.18 billion in financing.
But the week’s activity extended beyond those four companies.
AIR Security emerged from stealth with US$50 million for technology designed to protect enterprises from security threats associated with AI agents.
Founded by Israeli cybersecurity veterans, AIR is developing a security layer intended to address the risks created when autonomous AI agents gain access to corporate data, software and third-party tools.
AITAN announced US$41 million for autonomous defence and edge-AI technology, while cybersecurity company Huskeys raised US$27 million.
Guardio, an Israeli consumer cybersecurity company, announced a US$ 40 million round at a reported US$ 1.1 billion valuation.
Other investments went into self-healing data infrastructure, smart technology and AI-driven productivity tools.
The range of companies receiving investment is significant because it suggests that the surge is not confined to one unusually large transaction or technology niche.
Israeli Cyber Expertise Moves Into AI Security
One emerging pattern is the convergence of two sectors in which Israeli entrepreneurs have developed considerable expertise: cybersecurity and artificial intelligence.
As companies increasingly deploy autonomous AI agents capable of accessing databases, applications and corporate systems, those agents create new security vulnerabilities.
Israeli companies are moving quickly to address them.
AIR Security’s US$50-million financing is one example, while Upwind is expanding its cloud-security platform to address AI infrastructure.
The development could create another significant growth category within Israel’s already established cybersecurity industry.
Israel’s cybersecurity ecosystem has produced numerous major international companies and acquisitions, supported in part by technical expertise developed within the Israel Defense Forces and its intelligence and cyber units.
Acquisitions And Wall Street Milestones
The week’s technology activity was not limited to venture financing.
ServiceNow reportedly agreed to acquire Israeli startup Sweep in a transaction estimated at hundreds of millions of dollars.
Sweep develops AI agents that can work across enterprise platforms.
Israeli deep-tech company LightSolver also moved toward the public markets through its acquisition by Nasdaq-listed CollPlant.
LightSolver, founded by physicists Dr. Ruti Ben Shlomi and Dr. Chene Tradonsky, is developing a radically different, laser-based approach to computing.
Its Laser Processing Unit uses optical technology to perform certain computational tasks rather than relying exclusively on conventional electronic processors.
The transaction gives LightSolver access to a publicly traded corporate structure and additional resources as it pursues development and commercialization.
Israeli autonomous systems company XTEND, meanwhile, began trading on the New York Stock Exchange following its merger, opening another route between Israeli technology and U.S. capital markets.
Omri Casspi Raises US$250 Million
The investment momentum also produced a notable development on the venture-capital side of the Israeli technology ecosystem.
Former Israeli NBA player Omri Casspi has raised US$250 million for the third fund of Swish Ventures.
The new financing brings the firm’s assets under management to approximately US$800 million.
Swish plans to invest the fund in approximately 12 companies, with investments of roughly US$20 million per company and a focus on early-stage businesses.
Casspi’s existing portfolio includes Wonderful and Upwind, two of the companies responsible for the enormous September funding totals.
Nine of the 21 companies in which Swish has invested since its creation have reportedly reached unicorn status, the designation commonly applied to privately held startups valued at US$1 billion or more.
Israeli Innovation Continues To Attract Global Capital
The September funding surge comes as Israel continues to maintain an outsized position in global technology despite years marked by war, political uncertainty and wider economic pressures.
Artificial intelligence and cybersecurity are particularly prominent among the companies attracting investment.
The latest rounds also demonstrate the increasingly international structure of Israeli technology.
Many companies maintain research and development operations in Israel while building headquarters, sales operations and customer bases in the United States and other major markets. Israeli founders are consequently creating companies that can be part of Israel’s innovation ecosystem while also being deeply integrated into the American technology economy.
That international model has helped Israeli startups gain access to some of the world’s largest venture investors and corporate customers.
September’s opening numbers offer a striking measure of that continuing confidence.
Approximately US$1.4 billion was announced in three days. Four Israeli and Israeli-founded technology companies raised more than US$1.18 billion between them. Several others secured tens of millions of dollars, Israeli companies reached new public markets, and another major pool of venture capital was created to finance the next generation of startups.
For a country of fewer than 11 million people, the opening days of September once again demonstrated the extraordinary scale of Israel’s presence in the global innovation economy.
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