This Israeli cybersecurity startup is less than a year old. Here's how it got a $33 million preemptive term sheet from Craft Ventures.

In a remarkable development, Tel Aviv-based cybersecurity startup Daylight has successfully raised $33 million in a Series A funding round led by Craft Ventures, a firm co-founded by David Sacks, known for his ties to PayPal and SpaceX. This funding arrives at a critical time as the cybersecurity landscape faces an alarming rise in cyberattacks, fueled by advancements in artificial intelligence. Daylight’s funding comes on the heels of Google's efforts to acquire the Israeli-founded security firm Wiz for an astounding $32 billion, potentially marking one of the largest transactions in the cybersecurity sector. Notably, investments in Israeli security startups have surged, nearly doubling last year and accounting for 40% of the total cybersecurity funding in the United States, according to Startup Nation Central. The funding round also attracted contributions from esteemed investors including Bain Capital Ventures and Maple VC, alongside a notable roster of Israeli cybersecurity pioneers such as Wiz's Assaf Rappaport and Armis's Yevgeny Dibrov. While Daylight opted not to disclose its valuation, the startup's co-founders, Hagai Shapira and Eldad Rodich, initially did not plan to seek additional funding so soon after their seed round, during which they hired engineers and launched their AI-driven managed detection and response platform. Shapira expressed the dilemma of balancing the influx of capital with operational capacity, emphasizing their commitment to earning the trust of both investors and customers. Both founders hail from Unit 8200, Israel’s elite intelligence unit that has produced a plethora of successful technology entrepreneurs, underscoring their deep industry expertise. As cyberattacks surged by nearly 50% per organization in the first quarter of this year, according to Check Point Research, the timing for Daylight’s entry into the market could not be better. Kevin Gabura, a principal at Craft Ventures, highlighted the transformative impact AI is having on cybersecurity, stating that many new companies are emerging to tackle these evolving threats. Gabura's confidence in Daylight led to the preemptive term sheet, driven by the startup's impressive early traction, including dozens of clients in the US and Europe, such as The Motley Fool and McKinsey Investment Office. With a robust product already in place and strong feedback from its user base, Daylight is poised to make significant strides in the rapidly changing cybersecurity landscape.