Israeli cybersecurity startup Modelyo has raised approximately US$17 million in a funding round led by U.S.-based OlivTree, with participation from Seth Merrin, David Phelps, and other investors. The company announced the investment on Thursday, saying the capital will support research and development of its Sovereign Confidential Cloud platform and expansion of its international commercial operations. Founded in 2024, Modelyo employs 30 people and had previously operated solely on funding from its founders.
A Sovereign Confidential Cloud Platform
Modelyo is developing a confidential cloud platform that allows organizations to use cloud infrastructure, managed services, and artificial intelligence systems while retaining control over their data and encryption keys. The technology combines confidential computing, hardware-based encryption, continuous verification of computing environments, and a zero-trust architecture. This approach protects data not only while it is stored or transmitted, but also while it is being processed.
Cryptographic Verification and Zero Trust
The platform enables organizations to run services on third-party cloud infrastructure without giving providers access to the contents of their data or their encryption keys. Modelyo uses cryptographic verification to help customers prove that their data is protected, rather than relying solely on assurances from cloud providers. The company said this model changes the relationship between customers and technology providers by replacing trust with verifiable technical guarantees.
Target Markets and Use Cases
Modelyo targets organizations with stringent security and data sovereignty requirements, including defense agencies, governments, banks, healthcare and pharmaceutical companies, and operators of critical infrastructure. The company is placing particular emphasis on AI systems and autonomous agents, which are increasingly capable of making decisions and operating systems independently. Its platform is intended to let these organizations use cloud computing resources without relinquishing control over sensitive information and intellectual property.
Leadership and Origins
Modelyo was founded following the October 7 attacks by Benny Meir, Dr. Itzhak Aviv, and Dr. Michael Kiperberg, who bring backgrounds in defense systems, encryption, and computing infrastructure. Meir is a reserve lieutenant colonel with more than two decades of experience in special operations, while Aviv has worked within MATZOV and the IDF communications and computing directorate. Research and development is led by Artem Barger, whose work has received more than 7,000 academic citations according to Google Scholar.
Strategic Vision and CEO Commentary
Meir said the speed of AI adoption requires security to advance at the same pace and that organizations cannot afford to choose between innovation and security. He added that Modelyo wants customers to prove cryptographically that their data is protected, even while it is processed in someone else's cloud or used by AI systems. The company's technology is backed by more than 20 patents and patent applications covering confidential processing of databases, storage, communications, video, and AI models.
Roadmap and Partnerships
Modelyo plans to expand its encrypted managed services, enhance support for AI systems and autonomous agents, extend compatibility with GPU infrastructure, and simplify deployment. The company says its platform can be deployed in minutes through a relatively simple setup process, reducing the need for customers to build and maintain complex security systems themselves. Modelyo also collaborates with NVIDIA, Intel, and Google on technology initiatives intended to advance confidential computing on modern hardware and cloud infrastructure.
Modelyo operates in Israel, the United States, Europe, South Korea, India, and the United Arab Emirates. Beyond conventional enterprise computing, the company sees potential applications in robotics, autonomous vehicles, industrial systems, and smart infrastructure, where protecting decision-making environments is increasingly important. By combining confidential computing with managed services, Modelyo aims to help even the most sensitive organizations adopt cloud and AI capabilities without surrendering control of their data.