Modelyo raises $17 million for confidential cloud platform

Israeli cybersecurity startup Modelyo raised approximately $17 million in a funding round led by US investor OlivTree, according to CTech. Seth Merrin, David Phelps and other investors also participated.

Modelyo is developing a confidential cloud platform that lets organizations run AI and other services on third party cloud infrastructure without giving providers access to their data or encryption keys. It combines confidential computing, hardware based encryption, continuous verification and a zero trust architecture to protect information while it is stored, transmitted and processed.

The company will use the funding for research and development and international commercial expansion. Its target customers include governments, defense agencies, banks, healthcare companies and critical infrastructure operators with strict security and data control requirements.

Founded in 2024, Modelyo employs 30 people and previously operated with funding from its founders. The company plans to expand its encrypted managed services, improve support for AI agents and GPU infrastructure, and simplify deployment.