Israel’s Glilot Partners raises $500M to back young cyber and AI software startups

Israeli venture capital firm Glilot Capital Partners has raised $500 million to invest in local entrepreneurs and young, fast-growing startups focused on cybersecurity, enterprise software and AI tools, the company said Wednesday.

The Israeli firm said the fresh capital was raised mainly from large financial institutions in the US and Europe. The vote of confidence comes as Israel is facing growing criticism over its conduct during the ongoing Gaza war, which is threatening to affect business relations with the country’s biggest trading partners.

“We deeply believe in the Israeli ecosystem and will continue to lead investments in the best local and global talent,” said Glilot co-founder and managing partner Kobi Samboursky. “This raise reflects the confidence global financial institutions have in our unique investment model.”

“This new capital empowers us to continue and grow our cyber and AI philosophy,” Samboursky added.

Glilot said the fresh capital will be earmarked for Israeli early-stage startups and more mature tech companies to back “exceptional” entrepreneurs building cybersecurity, enterprise, and AI software. The raised funds will be allocated for investments into new Israeli tech companies and for follow-on investments. To date, Glilot’s total assets under management stand at about $1 billion.

Founded in 2011 by Samborsky, Arik Kleinstein, and general partner Nofar Amikam,  Glilot has invested in dozens of Israeli companies, 22 of which completed a tech exit through acquisition. These include CyberX, acquired by Microsoft in 2020, and Cider Security, bought by Palo Alto Networks in 2022.

Over the past couple of years, Israel cemented its standing as a cybersecurity powerhouse, with its startups in the field garnering about a third of total global private investments. In 2024, the local cyber industry defied the odds, attracting $4 billion in investments, more than double those of a year earlier, even as the country contended with a multi-front war with the Hamas terror group in Gaza and Iran-backed Hezbollah in Lebanon.

In July, Palo Alto Networks, a Santa Clara, California-based cybersecurity firm founded by American-Israeli entrepreneur Nir Zuk, acquired Israeli firm CyberArk in a deal valued at a staggering $25 billion. It marked the biggest-ever acquisition of an Israeli company after Google’s $32 billion purchase of Israeli-founded cybersecurity unicorn Wiz earlier this year.