Israeli Cybersecurity Company Onyx Security Launches Operations, Completes $40 Million Financing

Israeli cybersecurity company Onyx Security officially launched operations on Thursday, after completing a $40 million Series A funding round. This indicates that despite ongoing conflicts between the U.S., Israel, and Iran, investors remain interested in the country’s tech industry.

Israel’s tech sector is considered one of the largest in the world, accounting for about 20% of the GDP, 15% of employment, and over half of the country’s exports, with cybersecurity being a rapidly growing segment.

Onyx has developed a platform for protecting and managing AI agents. Over the past year and a half, the company has been in what it calls “stealth R&D mode” and has announced partnerships with several Fortune 500 companies.

Maxim Bar Cogan, co-founder and CEO of Onyx, a former member of Israel’s 8200 military intelligence unit, said, “Every company is becoming an operator of AI agents—whether they intend to or not.”

“AI agents are granted access to a company’s most critical systems, but how do we ensure they don’t make serious mistakes or get hacked?” he asked. “Securing AI agents in practice requires both defending against attacks and ensuring they don’t make key errors.”

Onyx stated that the funding round was led by venture capital firms Conviction Partners, Cyberstarts, and a group of angel investors. The funds will be used to expand the product and engineering teams and develop new AI models.

Alphabet’s Google completed its $32 billion acquisition of Israeli cybersecurity company Wiz on Wednesday.

Despite conflicts in the Gaza region, Israeli tech startups raised approximately $16 billion in funding in 2025, up from $12.2 billion in 2024.