In 2025, Israel’s high-tech scene is witnessing a shift in Seed funding, moving from modest investments to substantial “mega-seed” rounds. Approximately 5% of Seed deals now range from $20 to $50 million, primarily involving seasoned entrepreneurs, especially in cybersecurity, who attract significant interest from U.S. investors.
Among the top funding rounds, Tenzai, a cybersecurity firm founded in May 2025, secured a remarkable $75 million to innovate AI-driven penetration testing. 7AI, founded by former Cybereason executives, raised $36 million and swiftly followed with a $130 million Series A, focusing on autonomous security investigations. Orchid Security, targeting identity security complexities, and Wonderful, developing AI agents for call centers, both raised significant Seed rounds of $36 million and $34 million, respectively.
Sola Security and Unframe each secured $30 million, with Sola aiming to democratize cybersecurity tool creation, while Unframe seeks to revolutionize enterprise AI platforms. Opti, Onfire AI, and Act Security each garnered $20 million, focusing on identity intelligence, sales intelligence, and cloud security, respectively. Lastly, Line 5 achieved the largest defense-tech Seed round, founded by notable figures in the tech and defense sectors.
These developments highlight how experience and capital are transforming the landscape of early-stage company building in Israel.
