Dream Security hits $3 billion valuation after $260 million funding round

Dream Security, the cyber company founded by former NSO chief Shalev Hulio and former Austrian chancellor Sebastian Kurz, said Thursday that it has raised $260 million at a $3 billion valuation. The round was led by Group 11, Dovi Frances’s fund, together with Bicycle Capital of Miami, run by former JPMorgan and SoftBank executive Shuo Niyata, who also sits on the board of Israel’s Lemonade.

Other participants included Clal Insurance and Finance, plus existing investors Bain Capital, BRV, Antler, Tru Arrow Partners and Aleph. Dream said the round closed after it had already accumulated $300 million in orders since commercial launch in late 2024, and its annual recurring revenue recently passed $100 million.

Unlike many cybersecurity firms, Dream does not focus on one narrow product category. It sells governments and national infrastructure operators, including nuclear, gas, oil, water and power sectors, an integrated system that aims to do what several separate security products do elsewhere. The company, first reported by Globes in October 2022, also spent the past two years developing sovereign language models for government ministries such as finance, justice and interior.

Dream is best known for Sphere, a system that detects, investigates and disrupts state-backed cyberattacks. It is now expanding into vulnerability research with Hero, which autonomously maps weaknesses and attack paths linked to countries such as Russia, Iran and China, and recommends fixes. Its new Atlas product is intended to answer the recent move by the U.S. government to block non-Americans from accessing Anthropic and Fable models, by offering a sovereign natural-language model for state use.

Hulio said governments can train and run Dream’s models in their own cloud and server farms, so the company does not access their data. He said Dream’s models range from 8 billion to 80 billion parameters, and the company keeps 250 kilowatts of capacity at Mega DC’s data center in Modi'in, with hundreds of Blackwell 200 GPUs. Kurz and Frances both framed AI sovereignty as a national-security issue, with Frances calling Dream “the most important infrastructure layer of the AI era.”