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Autonomous Defense, Capital Splits, and Seed Returns

Israeli venture capital rebalances toward deep tech and hardware as AI shifts early-stage hiring and defensive security draws mega-rounds.

Signalpoint TeamBrief

Startup

Corma's $60 million seed round proves venture capital is aggressively backing Israeli defensive AI startups to counter automated offensive hacking tools.

BackgroundFounded in 2025 by veterans of IDF Unit 8200 and Google DeepMind, Corma develops defensive software agents that integrate directly into corporate cloud networks. Early-stage venture investment in defensive AI has surged worldwide as automated offensive tools accelerate the speed of network breaches.

Points
  1. Corma's 20-person engineering team in Tel Aviv builds foundation models that automate real-time incident analysis and threat containment across cloud architectures.
  2. Sequoia led the seed round alongside Khosla Ventures and Coatue, marking one of the largest early-stage investments in Israeli cyber history.
  3. The firm's rapid fundraising highlights how tier-one Silicon Valley venture funds are prioritizing deep-tech Israeli security founders despite broader market volatility.
SourcesCTech by Calcalist: Corma raises $60 million Seed to build AI designed to fight AI-powered cyberattacks (opens in new tab)Ynet News: Corma raises $60 million as AI gives cyberattackers a growing edge (opens in new tab)

Startup

Raanan's top global seed ranking confirms that early bets on Israeli cybersecurity founders continue to generate world-beating venture returns.

BackgroundThe Forbes Midas Seed List tracks venture capitalists globally who generate the highest return multiples on early seed investments. Cyberstarts operates as an elite Israeli fund focused exclusively on backing cybersecurity founders at the formation stage.

Points
  1. Raanan's early investment in Wiz produced one of the largest venture capital payout multiples in the history of global tech investing.
  2. Cyberstarts has built a track record of early backing across cybersecurity unicorns including Cyera, Island, and Noname Security, solidifying its seed dominance.
  3. The top global ranking demonstrates how specialized seed funds focusing on Israeli cybersecurity consistently generate outsized venture capital returns for investors.
SourcesForbes: Forbes 2026 Midas Seed List: Top Seed Stage Investors (opens in new tab)

Startup

AI automation is eliminating entry-level Israeli software jobs while forcing venture capital and talent into hardware and defense.

BackgroundIsrael's high-tech sector generates over 18% of GDP and drives the majority of national exports. The rapid integration of automated AI coding workflows is reducing junior software engineering headcount while international demand for hardware and defense tech remains high.

Points
  1. Software startups report layoffs as automated coding tools allow smaller engineering teams to handle product maintenance and feature development.
  2. Semiconductor, computing infrastructure, and defense technology companies report surging international demand, creating severe engineering labor shortages across Israel.
  3. Innovation Authority officials noted overall high-tech employment remains stable, indicating a rapid reallocation of capital and talent into hardware and security.
SourcesThe Jerusalem Post: Dramatic split: The new map of upheavals in Israeli tech (opens in new tab)CTech by Calcalist: AI is splitting Israel's high-tech industry in two (opens in new tab)

Startup

Index's $3.5 billion fundraise guarantees fresh capital for Israeli enterprise and deep-tech founders expanding into international markets.

BackgroundIndex Ventures is a major global investor with a history of backing prominent Israeli enterprise software and cybersecurity startups. Global venture fundraising has increasingly consolidated into multi-stage funds that can support startups from seed through public listing.

Points
  1. The new capital allocation will focus on seed, Series A, and expansion rounds across enterprise software, artificial intelligence, and deep tech.
  2. Index Origin III will specifically provide pre-Series A startup founders with embedded technical and operational scaling support to accelerate international growth.
  3. Fund partners confirmed that Israel remains a primary target market for seed-stage cybersecurity and applied artificial intelligence investments.
SourcesChannel Eye: Ogier advises Index Ventures on three fund closings totalling US$3.5bn (opens in new tab)

Startup

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