Israeli Startup Fighting Hamas Tunnels Raises $25 Million from Anduril and SpaceX Leaders

Traysar, an Israeli-American startup specializing in underground warfare technology, has secured $25 million in funding from senior executives at Anduril, SpaceX engineers, Craft Ventures, and AI advisor David Sacks, alongside Lux Capital and Entree Capital. Founded in 2024 by Yadin Sofer, Asher Katz, and Gilad Edin, the company develops compact engineering vehicles and mining machines designed to destroy terrorist tunnels and underground military bases. Its flagship product is a small bulldozer-like machine equipped with a hydraulic drill and explosive deployment system, already tested in Hamas tunnels in Gaza and intended for use against smuggling tunnels between Mexico and the U.S.

Traysar also plans to develop a tunnel boring machine capable of reaching deep underground military facilities in countries like Iran, Russia, China, and North Korea. The startup employs about 20 people in Tel Aviv and Austin, Texas, and is valued at approximately $100 million. Some investors include Anduril founder Palmer Luckey, though the company has not confirmed his direct investment. Luckey has publicly advocated for increased focus on subterranean warfare, calling it a critical but overlooked domain.

The startup’s CEO, Yadin Sofer, a serial entrepreneur and former TED community founder in Israel, highlighted that recent conflicts, including U.S. strikes on Iranian nuclear sites, underscored the strategic importance of underground warfare. Despite the U.S. military’s technological sophistication, it has historically reacted rather than proactively addressed subterranean threats. Traysar aims to change this by educating the market and developing tailored solutions for U.S. defense needs.

The company’s breakthrough came after initial difficulties raising funds until it demonstrated a working prototype in collaboration with Israel’s Ministry of Defense. The success of this project shifted perceptions, turning Traysar from a niche concept into a viable defense technology firm. While the startup currently operates in Israeli border tunnels, its primary growth opportunity lies in the American defense sector, addressing threats from underground military installations worldwide.