Dream Security Raises $260M, Hits $3B Valuation

Dream Security, the Israeli cybersecurity and AI firm co-founded by former Austrian Chancellor Sebastian Kurz, has successfully closed a Series C funding round, raising $260 million. This significant capital injection propels the company's valuation to an impressive $3 billion, marking a substantial leap just over three years after its inception and a year after achieving unicorn status.

The funding round was spearheaded by prominent venture capital firms Bicycle Capital and Group 11. Further bolstering the investment were contributions from Bain Capital, Tru Arrow Partners (backed by financier James Rothschild), and Norwegian tech investor Antler, alongside other undisclosed global financiers. Notably, Group 11, led by Israeli-American investor Dovi Frances, has been a consistent supporter since the company's early days, while Bain Capital participated in the previous funding round. The new investors, Bicycle Capital and Antler, signal strong confidence in Dream Security's growth trajectory.

This latest valuation represents a near threefold increase since February 2025, when Dream Security first crossed the billion-dollar threshold with a $100 million funding round. The fresh capital is earmarked for aggressive global expansion, with a strategic focus on entering new markets. Co-founder Sebastian Kurz confirmed plans to establish a new office in Munich, Germany, within the current year, underscoring the company's commitment to European growth. Kurz, who holds an estimated 15% stake in the company, sees his share now valued at approximately $450 million.

Dream Security is broadening its product portfolio beyond its established cybersecurity solutions for governments, utilities, and private enterprises. The company is integrating AI-driven data analysis tools, positioning itself as a direct competitor to established players like Palantir in this rapidly evolving segment. The core business model revolves around enabling nations to build and maintain "sovereign" AI infrastructure, ensuring they retain ownership, operation, and complete control over their AI systems. Kurz emphasized that the critical question for nations is no longer *if* they will adopt AI, but *how* they will own and control it to avoid dependencies on other global powers.

The company, founded in January 2023 by Shalev Hulio (CEO), Sebastian Kurz (President), and AI expert Gil Dolev (CTO), is headquartered in Tel Aviv, with additional offices in Vienna and Abu Dhabi. Shalev Hulio, formerly a co-founder of the controversial NSO Group, brings significant experience in developing advanced technology solutions. Dream Security currently employs between 250 and 320 individuals, serving public sector clients across Europe, the Middle East, and Southeast Asia. Previous funding rounds include approximately $54 million across two early-stage rounds in 2023 and the $100 million round in early 2025.

Recent geopolitical events, such as the U.S. government's export control order restricting foreign access to advanced AI models from Anthropic, have amplified Dream Security's narrative on AI sovereignty. Hulio views this as a catalyst for a global shift, highlighting that mere access to AI models is insufficient for national security and economic interests. He argues that AI is increasingly being recognized as critical infrastructure, necessitating national control and guaranteed availability, thus fueling a global race for sovereign AI capabilities.