The Pulse
Modelyo Raises About $17 Million for Confidential Cloud Platform
Israeli cybersecurity startup Modelyo has raised about $17 million in a round led by OlivTree. The company plans to use the funding to develop its confidential cloud platform and expand commercial operations internationally.
AI.info Team · Written with AI · fact-checked ·
“Instead of asking customers to trust that their data is protected, we give them the tools to prove it cryptographically, even while the data is being processed, even when it is in someone else’s cloud, and even when AI systems are working with it.”
Benny Meir, Modelyo co-founder and CEO
Modelyo announced on Thursday, October 22, that it had raised approximately $17 million to build out its confidential cloud platform and expand overseas. The Israeli cybersecurity startup is targeting organizations that want to run cloud services and AI workloads without handing their providers control of sensitive data or encryption keys.
OlivTree leads Modelyo’s $17 million round
The round was led by U.S.-based OlivTree, with participation from Seth Merrin, David Phelps and other investors, CTech reported. Modelyo says it will put the money toward research and development and expanding its international commercial operations. The report did not disclose a company valuation.
Founded in 2024, Modelyo employs 30 people and had previously relied solely on funding from its founders. Its product, which the company calls a “Sovereign Confidential Cloud,” is designed to let organizations use cloud infrastructure and managed services while retaining control of their information and keys.
Protecting data while software uses it
Conventional encryption can protect information while it is stored or moving between systems, but workloads also need to process data. Modelyo says its platform is designed to protect information during that stage, combining confidential computing, hardware-based encryption, ongoing checks of computing environments and a zero-trust architecture.
The company says customers can run services on third-party cloud infrastructure without giving the provider access to their data or encryption keys. Cryptographic verification is intended to let customers check whether the computing environment meets security requirements, rather than relying only on assurances from the cloud operator. Those are claims about the company’s product, not independent performance or security test results.
Governments, banks and AI workloads are targets
Modelyo is pursuing customers with strict security and data-sovereignty requirements, including governments, defense organizations, banks, healthcare and pharmaceutical companies, and critical-infrastructure operators. The platform is intended to support databases, storage, communications, video, AI models and other computing-intensive applications. Modelyo says its technology is backed by more than 20 patents and patent applications.
The company plans to expand encrypted managed services, improve support for AI systems and autonomous agents, and extend compatibility with GPU infrastructure. It also wants to make deployment simpler, so customers do not have to build and maintain the full security stack themselves. The company says its system is designed to be deployed in minutes.
Expansion beyond Israel
Modelyo operates in Israel and markets including the United States, Europe, South Korea, India and the United Arab Emirates. The company also says it works with NVIDIA, Intel and Google on initiatives related to confidential computing and secure environments for demanding AI workloads.
For now, the stated priorities are practical ones: fund product development, broaden GPU support and make managed confidential computing easier to deploy. Modelyo says the round will help it pursue those goals while serving customers that want cloud and AI services without giving up control of their data.