Modelyo announced on Thursday, October 22, 2026, that it has raised approximately $17 million, primarily from U.S. investors, to accelerate the development of its Sovereign Confidential Cloud platform and expand its international operations.
Modelyo’s technology enables organizations to use cloud infrastructure, managed services and AI agents while keeping their data encrypted, including during processing, without sharing encryption keys with the cloud provider. The company operates in Israel and international markets and will use the funding to expand its development and commercial operations.
The company aims to address a central challenge for governments, banks, defense companies, healthcare organizations and large enterprises: using the vast computing resources of the cloud and advanced AI systems while retaining control over their data, intellectual property and encryption keys.
With even the largest technology platforms vulnerable to breaches and cyberattacks, and organizations facing risks from their reliance on external infrastructure providers, Modelyo offers a new approach to cloud security based on cryptographic verification. Its technology enables organizations to verify that their data is protected, including during processing, rather than relying solely on assurances from their providers.
The technology combines confidential computing, hardware-based encryption, continuous verification of the computing environment and a zero trust architecture. It allows organizations to run advanced cloud services on third-party infrastructure while retaining control of their encryption keys, without requiring the infrastructure provider to access the contents of their data.
The funding was led by U.S.-based OlivTree, with participation from Seth Merrin, David Phelps and other investors. The proceeds will be used to accelerate research and development of the confidential cloud platform and expand the company’s international go-to-market activities.
The company plans to expand its encrypted managed services, enhance support for AI systems and autonomous agents, extend support for GPU infrastructure and make the platform easier to use.
“The world is moving at a pace we have never seen before. AI no longer just generates content. It is beginning to make decisions and operate systems, and will soon be part of almost every aspect of our lives, from banking to the cars we drive," said Benny Meir, co-founder and CEO of Modelyo. “But as technology advances, security must advance with it. We cannot build tomorrow’s world on yesterday’s approaches to security. We founded Modelyo with the understanding that the world cannot afford to choose between innovation and security. There is no reason a company should have to surrender its secrets, its intellectual property or control over its systems simply to benefit from the power of cloud computing and AI."
Meir added: “We want to change the relationship between organizations and their technology providers. 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."