How This Israeli Cybersecurity Startup Scored a $33 Million Term Sheet in Months and What CISOs Can Learn

What Happened

Tel Aviv-based cybersecurity startup Daylight has raised $33 million in Series A funding led by Craft Ventures, less than a year after its founding. The AI-powered managed detection and response (MDR) startup, created by Unit 8200 veterans Hagai Shapira and Eldad Rodich, caught investor attention for its rapid traction and enterprise clients, including The Motley Fool, Cresta, and McKinsey Investment Office.

The investment marks one of the fastest early-stage cybersecurity deals of 2025 and underscores the growing appetite for AI-native security solutions amid a reported 50 percent surge in attacks per organization this year.

Who Is Affected

• Cybersecurity vendors and startups: Expect intensified competition as investors double down on AI-first security platforms.
  
• Enterprise CISOs and IT security teams: Vendor landscapes are shifting fast, with AI-driven MDR solutions becoming mainstream.
  
• Organizations with legacy detection tools: Falling behind on automation and AI integration could expose blind spots in threat response.
  
• Security partners and integrators: Daylight’s rise could reshape channel alliances and create new partnership dynamics.
  

Why CISOs Should Care

• AI is redefining detection and response: Daylight’s funding signals that traditional, manual SOC operations are losing relevance.
  
• Vendor disruption is accelerating: Big capital inflows into startups will pressure established cybersecurity providers to innovate faster.
  
• Threat intensity is climbing: A 50 percent increase in attacks highlights why faster, AI-powered responses are essential.
  
• Strategic budgets must adapt: CISOs can’t afford static tech stacks; future-proofing requires agile investment in next-gen capabilities.
  

3 Practical Actions for CISOs

1. Audit your MDR capabilities
   Compare your detection and response workflows against emerging AI-driven benchmarks. Identify bottlenecks where manual review still slows remediation.
   
2. Evaluate new vendors with proof-based criteria
   For up-and-coming providers like Daylight, demand validated case studies, measurable performance gains, and clear data governance frameworks before onboarding.
   

Future-proof your security roadmap
Reassess your 12 to 18 month cybersecurity budget. Prioritize flexible architecture and vendor diversity to adopt innovative tools as the threat landscape evolves.