(Bloomberg) -- Cybersecurity company Cato Networks said it raised $238 million from investors at a valuation of more than $3 billion, in one of the largest funding rounds in Israel this year. 

The round was led by Lightspeed Venture Partners, Tel Aviv-based Cato said in a statement on Tuesday. Adams Street Partners, SoftBank Vision Fund 2, Sixty Degree Capital, and Singtel Innov8 also participated.

Fundraising for Israeli tech startups is improving after a sharp slowdown in the first half, when investment fell to the lowest since 2018. Cato’s round highlights the sector’s resilience despite global economic headwinds and eight months of protests over Prime Minister Benjamin Netanyahu’s efforts to weaken the judicial system. 

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Cato has raised a total of $773 million since 2015 and increased its valuation from $2.5 billion after its last round in 2021. The cloud network security firm said it plans to use the funds to expand its customer base and add staff.

Wiz, another Israel-founded cloud security startup, raised $300 million in February at a $10 billion valuation. Online trading platform eToro raised $250 million in March in a round that cut its valuation to $3.5 billion. 

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