Capital New Era successfully concludes third investment fund, amassing a total of $120 million.
Israel, a global hub for technological innovation, is witnessing an unprecedented acceleration in various sectors, with AI-based technologies leading the charge. The latest developments in early-stage startups show a significant expansion, particularly in cybersecurity, enterprise software, fintech, and smart mobility.
As of mid-2025, Israel is home to 342 generative AI startups that have collectively raised over $20 billion in funding. This figure represents a nearly 200% increase since the previous year, indicating explosive growth in this domain.
Cybersecurity Leads the Pack
The cybersecurity sector has seen one of the highest growth rates. Two notable startups, BlinkOps and Tonic Security, have recently secured significant funding. BlinkOps, specializing in AI-powered Security Micro Agents, raised $50 million in Series B, while Tonic Security, with an AI-driven platform to clarify threat landscapes, completed a $7 million seed round.
Israel continues to lead as the world's cybersecurity powerhouse, with unmatched talent in the field. Many founders bring direct operational experience in protecting strategic assets at a national level.
Investment Landscape
In July 2025 alone, Israeli startups raised over $900 million across 28 deals, a 28% increase year-over-year. Many rounds were between $20 million and $50 million, indicative of robust early and growth-stage investment activity.
Attractive valuations and outstanding companies offering real solutions to global markets are being observed in the Israeli tech scene. Long-term investor confidence is driven by the belief that the war may be nearing an end, and that regional trends are moving toward economic and security stability.
New Era Capital Partners' $120 Million Fund
New Era Capital Partners, a firm known for its high-conviction investing and strong support for selected companies, has finalized its third fund, totaling $120 million. Gideon Argov, Co-Founder and Managing Partner, stated that this fund will enable New Era to continue identifying exceptional founders, help them build global companies, and connect them to their extensive business network in Israel and abroad.
The firm's strategy is to invest in early-stage Israeli startups focused on AI-based technologies in sectors such as cybersecurity, enterprise software, fintech, and smart mobility. Ziv Conen, Managing Partner, emphasizes the importance of innovation in detection, defense, and rapid response in the face of increasingly sophisticated threats.
M&A Activity
In the past year, 31 generative AI startups were acquired, with 17 having disclosed values totaling $6.1 billion. This points to a vibrant exit environment, often driven by interest in AI capabilities in cybersecurity and enterprise software.
In conclusion, Israeli early-stage AI startups, particularly in cybersecurity, enterprise software, fintech, and smart mobility, are experiencing sweeping growth, marked by hundreds of new ventures, billions in funding, and notable acquisitions. This momentum is propelled by advanced AI innovation like agentic capabilities and a blend of elite technical talent and entrepreneurial drive. The Israeli market currently offers extraordinary opportunities, particularly in the areas of generative AI, autonomy, and real-world applications.
In the realm of venture capital and technology, Israel's cybersecurity startups, such as BlinkOps and Tonic Security, have raised substantial funds, with BlinkOps securing $50 million and Tonic Security completing a $7 million seed round.
Recognizing the potential of AI-based technologies, New Era Capital Partners has finalized a $120 million fund, aiming to invest in early-stage Israeli startups focusing on sectors like cybersecurity, enterprise software, fintech, and smart mobility.
