Onyx Security exits stealth with $40M to secure AI agents across Fortune 500 companies

Israeli cyber firm Onyx Security launches operations with $40 million funding round

JERUSALEM, March 12 (Reuters) - Israeli cyber firm Onyx Security officially launched operations on Thursday after securing $40 million in initial funding, signalling continued investor interest in the country's technology sector despite the ongoing U.S.-Israeli war on Iran. The tech sector, regarded as one of the largest in the world, accounts for about 20% of GDP, 15% of jobs and more than half of Israeli exports, with cybersecurity becoming a fast-growing segment. Onyx, which ⁠has developed a platform to secure and control artificial-intelligence agents, has been in so-called "stealth mode" for the last year-and-a-half, and said it was already working with multiple Fortune 500 companies. "Every enterprise is becoming an agent operator -- whether they planned to or not," said Maxim Bar Kogan, co-founder and CEO of Onyx, who served in Israel's 8200 military intelligence unit. "Agents are given access to the most critical systems ⁠in the enterprise, but what are our guarantees they will not make serious mistakes or get compromised?" he said. "The safe adoption of AI agents requires security from attacks, as well as ensuring agents don't make critical ⁠mistakes." The funding round was led by venture firms Conviction Partners and Cyberstarts, as well as a group of angel investors, Onyx said. The funds, it ⁠said, would be used to expand product and engineering teams as well as develop new AI models. Alphabet's Google (GOOGL.O), opens new tab on Wednesday completed ⁠its $32 billion purchase of Israeli cyber firm Wiz. Despite the conflict in Gaza, Israeli tech startups raised some $16 billion in 2025, up from $12.2 billion in 2024. Reporting by Steven Scheer; Editing by Pooja Desai Our Standards: The Thomson Reuters Trust Principles., opens new tab

Israeli cyber firm Onyx Security launches operations with $40 million funding round

Israeli cyber firm Onyx Security has launched operations after securing $40 million in funding. The company focuses on securing artificial intelligence agents. This launch signals continued investor confidence in Israel's tech sector. Onyx is already working with major companies. The funds will support team expansion and AI model development. This comes as Google recently acquired another Israeli cyber firm, Wiz. Israeli cyber firm Onyx Security officially launched operations on Thursday after securing $40 million in initial funding, signalling continued investor interest in the country's technology sector despite the ongoing U.S.-Israeli war on Iran. The tech sector, regarded as one of the largest in ⁠the world, ⁠accounts for about 20% of GDP, 15% of jobs and more than half of Israeli exports, with cybersecurity becoming a fast-growing segment. Onyx, which has developed a platform to secure and control artificial-intelligence agents, has been in so-called "stealth mode" for the last year-and-a-half, and said it was already working ⁠with multiple Fortune 500 companies. "Every enterprise is becoming an agent operator - whether they planned to or not," said ⁠Maxim Bar Kogan, co-founder and CEO of Onyx, who served in Israel's 8200 military intelligence unit. "Agents are given access to the most critical systems in the enterprise, but what are our guarantees they will not make serious mistakes or get compromised?" he said. "The safe adoption of AI agents requires security from attacks, as well as ensuring agents don't make critical mistakes." The funding round was led by venture firms Conviction Partners and Cyberstarts, as ⁠well as a group of angel investors, Onyx said. The funds, it said, would be used to expand product and engineering teams as well as develop new AI models. Alphabet's Google on Wednesday completed its $32 billion purchase of Israeli cyber firm Wiz. Despite the conflict in Gaza, Israeli tech startups raised some $16 billion in 2025, up from $12.2 billion in 2024.

As AI agents spread, Onyx raises $40 million to guard them

Onyx Security launched on Thursday with $40 million in funding from Conviction Partners and Cyberstarts, according to a company announcement, as the startup seeks to build what it calls a secure AI control plane for the growing use of autonomous AI agents in the enterprise. The company said its platform is designed to discover AI agents, monitor their reasoning steps, and approve, block, or correct actions in real time, as businesses increasingly deploy AI-driven security and governance systems across functions including engineering and customer service. Why Onyx says the market needs a control layer Onyx said the rise of AI agents is creating new operational and security risks for companies, including reasoning errors, hallucinations, and attacks delivered through malicious prompts. The startup argues that traditional security tools were built for predictable software and human-led workflows, not systems that can act autonomously, a shift that echoes broader industry concern around AI-native cyber defense. Chief executive and co-founder Maxim Bar Kogan said enterprises are already becoming "agent operators," with AI systems gaining access to sensitive internal platforms and critical business processes. The company said its product is intended to give security, governance, and infrastructure teams a shared layer for oversight and policy enforcement. Founders, customers, and expansion plans Onyx was founded by Bar Kogan, a former Unit 8200 member, and Gil Elbaz, a veteran AI researcher who previously reported to Nvidia's CTO and also served in an IDF AI research unit. The company said it already works with multiple Fortune 500 customers, employs more than 70 people across Israel, the United States, and Canada, and plans to use the funding to expand product and engineering teams. The launch comes as Israeli cybersecurity companies continue to attract strong investor interest around AI-driven security and automation. Recent Jerusalem Post reporting has pointed to major funding rounds and record capital raising across the sector in 2025 and early 2026. A widening AI security race Cyberstarts partner Hila Zigman said AI systems are becoming part of organizations' operational infrastructure, creating what she described as "an entirely new attack surface." That framing reflects the broader industry view that agent adoption is moving faster than the controls meant to govern it.