The Israeli AI startup nearly tripled its valuation in roughly a year, fueled by surging demand for national security tech
Dream, the Israeli AI cybersecurity company co-founded by former NSO Group CEO Shalev Hulio, has raised $260 million at a $3 billion valuation. That’s nearly triple the $1.1 billion valuation the company commanded just over a year ago, when it closed a $100 million Series B led by Bain Capital in February 2025.
From spyware controversy to infrastructure defense
Dream’s backstory reads like a redemption arc for the surveillance tech world. Shalev Hulio previously led NSO Group, the company behind Pegasus spyware that became a global lightning rod for debates about government surveillance and digital privacy. Dream represents a pivot from offensive surveillance tools to defensive AI, specifically focused on protecting critical national infrastructure.
The company’s core pitch is straightforward: use artificial intelligence for predictive threat detection and real-time cybersecurity across both operational technology and information technology environments. In English: Dream’s AI is designed to spot cyberattacks before they happen, protecting everything from power grids to government networks.
In February 2026, Dream launched what it described as Israel’s first sovereign AI data center, located near Modi’in. The facility is designed to handle mission-critical AI workloads for government operations.
The numbers in context
The $100 million Series B in early 2025 valued the company at $1.1 billion. That round was led by Bain Capital. With an additional $260 million, Dream has raised at least $360 million across its last two known rounds.
There’s a risk dimension worth noting. Dream’s connections to the Israeli defense and intelligence ecosystem are simultaneously its biggest asset and its most obvious vulnerability. NSO Group’s own history is a case study in how quickly government tech companies can become geopolitical liabilities.
