Dream's Surge in Valuation and Shift Towards Defensive Cybersecurity

By Patricia Miller

Jun 18, 2026

2 min read

Dream, the Israeli AI cybersecurity firm, raises $260 million, boosting its valuation to $3 billion while focusing on national infrastructure security.

#What Is Dream's Recent Funding Story?

Dream, an Israeli AI cybersecurity firm co-founded by Shalev Hulio, has successfully raised $260 million, bringing its valuation to $3 billion. This marks a significant leap from the $1.1 billion valuation it held just over a year ago. The company initially raised $100 million in February 2025 in a Series B funding round led by Bain Capital.

This new funding highlights a robust confidence in Dream’s capabilities and reflects the growing market demand for cybersecurity solutions. Investment in Dream underscores an increasing recognition of the need for advanced protective measures against cyber threats, especially in critical sectors.

#How Is Dream Reshaping Cybersecurity?

Dream's evolution illustrates a notable shift in focus within the cybersecurity landscape. Previously at the helm of NSO Group, which faced scrutiny over its surveillance technologies, Hulio's new venture aims to pivot away from offensive surveillance and direct attention to defensive artificial intelligence. This approach centers on safeguarding essential national infrastructure from cyber threats.

Dream's advanced AI technology seeks to provide predictive threat detection and real-time protection. This includes securing both operational technology and information technology environments. The AI systems aim to preemptively identify potential cyberattacks, thus shielding vital entities such as power grids and government networks.

#What Is Dream's Infrastructure Initiative?

In February 2026, Dream established what it claims is Israel's first sovereign AI data center near Modi’in. This facility is pivotal, designed to manage critical AI workloads, underlining Dream’s commitment to fortifying government operations with cutting-edge technology.

#What Are the Financial Implications?

The recent funding brings Dream's total raised capital in its last two fundraising endeavors to at least $360 million. The previous Series B funding round not only provided essential resources but also validated the company’s growth trajectory and potential.

However, the company faces inherent risks due to its deep ties to Israel’s defense and intelligence sectors. While these connections provide substantial leverage, they also pose significant risks, reflecting on how technology firms can become entangled in geopolitical challenges.

Investors should consider both the promising prospects of Dream's technology and the complexities of its operational background as they assess its potential in the cybersecurity market.

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.