Israeli artificial intelligence security company Dream has completed a $260 million funding round, pushing its valuation to approximately $3 billion — nearly triple the figure it carried at the time of its previous raise just over a year ago. The round was co-led by venture capital firms Bicycle Capital and Group 11, with additional participation from Bain Capital Ventures, Antler, and Tru Arrow Partners, among others.
The company, which was founded in 2023 and focuses on building AI-powered cyber defense systems for governments and state-owned enterprises, has now raised a total of more than $360 million. It has reported nearly $300 million in sales to date — a remarkable figure for a company of its age — and operates across multiple continents serving national security clients.
What Dream Does
Dream's core product is a sovereign AI security platform designed to help governments detect, analyze, and respond to cyber threats without depending on foreign technology infrastructure. The company argues that as AI becomes central to both offensive and defensive cyber operations, governments need to own and control the intelligence systems protecting their digital borders rather than relying on third-party tools whose training data and decision logic may not be transparent to the client.
Governments can no longer afford to use security tools they do not fully understand or control. The next generation of national cyber defense must be sovereign by design.
Its AI security product, marketed under the name Hero, targets large state entities and critical infrastructure operators. The platform continuously monitors network activity, identifies anomalous behavior, and can recommend or initiate protective responses faster than human operators could intervene manually. According to the company, Hero is currently deployed in several undisclosed government environments across Europe, the Middle East, and Asia.
Israel's Cyber Ecosystem
Dream's raise is one of the largest in the Israeli cybersecurity sector this year, but it is far from isolated. Israeli cyber startups have attracted substantial international capital in 2026, with AI-driven security and national defense technology among the most sought-after categories. According to data from Calcalist's CTech division, Israeli cybersecurity companies accounted for a disproportionate share of global sector investment in the first half of the year.
The sector's strength reflects decades of investment by the Israeli state in military intelligence and cyber capabilities, which have produced a generation of entrepreneurs with deep technical expertise in offensive and defensive operations. Alumni of elite intelligence units have founded or held senior roles at many of the country's leading security companies, and that pipeline shows no signs of slowing.
Expansion Plans
With the new funding, Dream plans to expand its engineering and sales teams significantly, with a particular focus on building relationships with governments in Southeast Asia and Latin America — regions that have been actively investing in sovereign digital infrastructure but have fewer established relationships with Western security vendors. The company also intends to accelerate development of the next version of its platform, which will incorporate real-time threat intelligence sharing across client networks.