Israeli startups raised $1.5 billion in July as investors doubled down on enterprise AI

Israeli startups raised approximately $1.518 billion across 29 funding rounds in July as investors doubled down on enterprise artificial intelligence, the source said. The total made July one of the strongest months of the year and reinforced investor appetite for companies building infrastructure to support the next generation of AI. Rather than backing developers of large language models, investors favored companies building surrounding technologies such as security platforms for autonomous agents and networking chips for massive AI clusters, the source said. Cybersecurity dominated the funding charts, with Glow emerging from stealth with a $180 million round at a $1.2 billion valuation and Onyx raising $113 million four months after launch. Semiconductor startup Xsight Labs secured the month's largest round at $300 million and a $2.8 billion valuation as demand surges for chips connecting massive computing clusters, the source said. Observability startup groundcover raised $100 million to challenge incumbents, arguing traditional platforms were not built for the explosion of telemetry from cloud-native AI applications. The AI investment wave extended to robotics, defense and other sectors, the source said. Enigma emerged with a $71 million seed round for foundation models for intelligent robots, while Skapion raised $36 million to counter drone swarms and Traysar launched with $25 million for autonomous subterranean systems.