Israeli Cybersecurity Startups Surge in Early 2026: Torq and Upwind Become Unicorns as Cyera Hits $12 Billion Valuation
Israel’s high-tech ecosystem demonstrated remarkable resilience in the first half of 2026. According to reports from the Israel Innovation Authority and analyses by Poalim Tech and Dealigence, Israeli startups raised $8.6 billion during this period — a 45% increase compared to the same period in the previous year.
In January 2026, two Israeli or Israeli-founded startups crossed the $1 billion valuation threshold to become unicorns. Both — Torq and Upwind — operate in cybersecurity and leverage advanced artificial intelligence. In mid-June 2026, another prominent Israeli cybersecurity company, Cyera, achieved a major valuation milestone with a massive funding round.
Data from tracking platforms indicate that Torq and Upwind were the primary new entrants to unicorn status in the period from January 1 to June 16, 2026. Cyera, already a high-valued company, significantly expanded its valuation further within the same timeframe.
Torq: Autonomous AI Agents Transform Security Operations Centers
Torq, an Israeli cybersecurity company founded in 2020 and headquartered in Tel Aviv, develops an AI-powered platform for Security Operations Centers (SOCs). Its core innovation lies in agentic AI and hyperautomation — autonomous AI agents that triage alerts, enrich data with context, investigate threats, and execute responses with minimal human intervention.
On January 11, 2026, Torq announced the closure of a $140 million Series D funding round at a $1.2 billion post-money valuation, officially joining the unicorn club. The round was led by Merlin Ventures. This brought Torq’s total funding raised to $332 million.
The company’s platform is already deployed at Fortune 500 organizations, including Marriott, PepsiCo, Procter & Gamble, Siemens, Uber, Virgin Atlantic, and Carvana. Customers report handling large volumes of Tier-1 alerts autonomously and running millions of agentic security actions daily.
Employee numbers stand at approximately 380–450 as of early-to-mid 2026. Following the raise, Torq announced plans to hire an additional 200+ employees in 2026, focusing on engineering, go-to-market, and customer success. The company is also accelerating expansion into the U.S. federal and public sector markets.
CEO and co-founder Ofer Smadari stated that the funding accelerates the mission to define and dominate the AI SOC market. The market opportunity is projected to grow significantly in the coming years.
Upwind: Runtime-First AI Platform Secures Dynamic Cloud Environments
Upwind, an Israeli-founded cloud security company (founded in 2022), delivers a runtime-first security platform. It provides real-time visibility and protection for cloud workloads, containers, Kubernetes, identity, APIs, and increasingly AI workloads across multi-cloud and hybrid environments.
On or around January 26, 2026, Upwind closed a $250 million Series B round at a valuation of approximately $1.5 billion, achieving unicorn status. The round was led by Bessemer Venture Partners, with participation from Salesforce Ventures, Picture Capital, and existing investors including Greylock and Cyberstarts. This brought total funding to over $430 million.
At the time of the announcement, the company reported 900% year-over-year revenue growth. It serves major global enterprises, including Siemens, Peloton, Roku, Nubank, Waste Management, Carvana, ClickUp, Wix, Agoda, Fiverr, and BILL.
Employee count reached approximately 450 as of May 2026. The company maintains a strong presence in Israel alongside its San Francisco headquarters and international expansion.
Cyera: Building the Trust Layer for the AI Era (Major June 2026 Milestone)
Cyera (סייארה), an Israeli-founded data and AI security company, develops a comprehensive platform for Data Security Posture Management (DSPM), privacy, identity, Data Loss Prevention (DLP), and agentic security. Its solution helps organizations control exactly what data their AI systems can access and govern what happens next — addressing a critical gap where many companies struggle to distinguish between human and AI-driven actions on sensitive data.
On or around June 10, 2026 (with coverage appearing around June 16), Cyera announced a $600 million funding round at a $12 billion valuation. This represents a fourfold increase in valuation over the previous 18 months. The round was led by Evolution Equity Partners, with participation from Cyberstarts (prominent Israeli cybersecurity VC), Temasek, Sequoia, Blackstone, Accel, Coatue, and other existing investors.
This latest round brings Cyera’s total funding to more than $2.3 billion. Key highlights include:
- Over 1,500 employees across 18 countries.
- Annual Recurring Revenue (ARR) tripled every year for the past three years.
- Five acquisitions completed (including Ryft and Genie).
- Notable customers: Paramount, Chipotle, DocuSign, and Valvoline.
CEO and co-founder Yotam Segev emphasized the importance of clear understanding of what AI systems can see and do. The company positions itself as building the essential “trust layer” for enterprise AI transformation.
While Cyera had already surpassed unicorn status earlier (valued at $9 billion after a January 2026 round), this June 2026 funding round marks one of the most significant private cybersecurity valuations achieved in the first half of the year and underscores Israel’s continued strength in AI-native security.
Summary of Key Data (January–June 2026 Period)
Torq (new unicorn – January 2026)
- Valuation: $1.2 billion
- Latest round: $140 million Series D
- Total funding: $332 million
- Employees (approx.): 380–450 (hiring +200 planned)
- Focus: Agentic AI for Security Operations Centers (SOC)
- Customers: Fortune 500 including Siemens, Uber, Marriott
Upwind (new unicorn – January 2026)
- Valuation: ~$1.5 billion
- Latest round: $250 million Series B
- Total funding: >$430 million
- Employees (approx.): ~450
- Focus: Runtime-first AI-driven cloud security
- Growth: 900% YoY revenue; global enterprise customers
Cyera (major valuation milestone – June 2026)
- Valuation: $12 billion (after $600 million round)
- Latest round: $600 million (late-stage)
- Total funding: >$2.3 billion
- Employees: >1,500 (18 countries)
- Focus: AI data security, DSPM, agentic security, and trust layer for AI
- Growth: ARR tripled yearly for 3 years; 5 acquisitions
All three companies operate in cybersecurity with strong AI integration — a clear area of specialization for Israeli startups. They benefit from deep technical talent, specialized investors such as Cyberstarts, and strong global demand for solutions that secure increasingly autonomous AI systems.
Broader Context
Cybersecurity remains one of Israel’s strongest export sectors. The combination of military-honed expertise, rapid innovation in AI, and access to top-tier international capital continues to produce globally significant companies. The $8.6 billion raised in H1 2026, concentrated in mature players, reflects investor confidence in proven teams delivering real-world security outcomes.
No other Israeli startups were widely reported to have newly reached unicorn status between January and mid-June 2026 beyond Torq and Upwind. Cyera’s June round represents the largest single private cybersecurity funding event in the period and further elevates Israel’s profile in the AI security space.
Conclusion
Torq and Upwind’s achievement of unicorn status in January 2026, alongside Cyera’s dramatic valuation increase to $12 billion in June 2026, highlight the enduring strength and innovative capacity of Israel’s startup ecosystem. These companies exemplify how Israeli entrepreneurs are addressing some of the most pressing challenges of the AI era — securing data, automating defense, and building trust in autonomous systems.
As global enterprises accelerate AI adoption, demand for sophisticated cybersecurity solutions from companies like these is expected to grow. Israel’s combination of talent, capital networks, and execution speed positions it to remain a leading source of such technology.
Primary Sources :
- Company announcements and press releases (torq.io, upwind.io, cyera.com)
- Calcalist CTech (multiple articles, Jan–June 2026)
- Jerusalem Post, Times of Israel, Reuters, Globes
- Tracxn unicorn and company profiles
- Israel Innovation Authority and Poalim Tech/Dealigence funding reports
- Arutz Sheva
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