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Cyera acquires Israeli startup Form AI


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Israeli cybersecurity firm Cyera knowledgeable staff final week that it’s buying Israeli startup Form AI, a small firm based by entrepreneurs Daniel Eisenberg, Eden Gaon, and Ariel Schon. Form AI, which was in stealth, raised $5.5 million earlier than the acquisition, from IBI’s high-tech fund and Mensch Capital, a comparatively unknown enterprise capital fund. Mensch Capital is managed by serial entrepreneur and investor Boaz Shedletsky, and its traders embody Wiz CEO Assaf Rappaport and former Hippo CEO Assaf Wand.

That is the second acquisition of an Israel startup by Cyera, which raised $60 million in its seed spherical three years in the past and is at present elevating $500 million at an organization valuation of $6 billion. Cyera acquired Path Safety final yr for $162 million.

The quantity Cyera is paying for Form AI has not been disclosed however market sources estimate it’s for a number of tens of thousands and thousands of {dollars}, which will probably be obtained by traders, founders and staff in Cyera shares and choices and beneficiant wage affords. The deal is a hiring acquisition during which one of many goals is to purchase a proficient group of staff appropriate for creating a brand new product at Cyera within the identification administration discipline and main improvement the sphere of cloud exercise evaluation, with the unique product developed by Form AI being closed and never transferred to the client.

Amongst Form AI’s entrepreneurs and staff are former members of particular intelligence items such because the 81st Nationwide Intelligence Heart (CINC) and members of the celebrated IDF Intelligence Corps – the kind of staff most in demand within the cybersecurity trade right this moment.

Form AI had modified its focus within the two years it has been working. The corporate was based as a wise stock administration system for retail chains, after which the product focus shifted to cloud infrastructure.

Companions from high funds

The Mensch Fund behind the corporate might not file the return it anticipated from the funding, however the deal sheds mild on its existence. This can be a fund during which Harel Insurance coverage is the anchor investor, which was additionally joined, by Rappaport and Wand, in addition to a number of managing companions in high funds resembling Andreessen Horowitz and Peter Thiel’s Founders Fund.

Rappaport and Wand don’t handle the fund’s investments, however they’ve invested their private capital and generally meet with and help the portfolio corporations.

The fund was raised and is managed by Boaz Shedletsky, a serial entrepreneur and co-founder of Sternum, who served as VP of the American training company McGraw-Hill. Shedletsky started his journey as a non-public investor and, after reaching a number of successes, determined to boost $30 million for his first fund, with Harel Insurance coverage as an anchor investor.







He’s now elevating one other fund that might attain $50 million. To date, the fund in query has raised $25 million after an preliminary closing final yr.

In response to US enterprise capital fund database PitchBook, the fund has made at the least 18 investments up to now, together with in provide chain administration firm Hexight, AI protection sector firm Wisery Labs, digital advertising administration system Addressable, and AI accounting firm Safebooks.

Printed by Globes, Israel enterprise information – en.globes.co.il – on June 11, 2025.

© Copyright of Globes Writer Itonut (1983) Ltd., 2025.