Israeli cybersecurity firm Sola has secured USD 35 million in a Series A funding round.

The financing was spearheaded by S32 and includes contributions from Microsoft’s M12, New Era Capital Partners, as well as existing investors like Mike Moritz, S Capital, and Glilot Capital Partners. This follows Sola’s seed funding in 2024, where the company raised USD 30 million, bringing its total funding to USD 65 million.

Customizable AI Tools for Fraud Detection and Prevention

In line with this investment, Sola has entered into a collaboration with Microsoft. This partnership highlights Microsoft’s commitment to integrating AI security capabilities across its enterprise ecosystem through initiatives such as Security Copilot—an AI-powered virtual assistant designed to analyze security data and resolve threats for users.

This development comes amid the cybersecurity industry’s struggle with a significant skills shortage, characterized by a lack of expertise in AI. Addressing this challenge, the market for AI cybersecurity is on the rise, forecasted to grow at a compound annual growth rate (CAGR) of 24.4% from 2025 to 2030, reaching USD 93.75 billion.

Such projections underscore a shift towards AI-powered security solutions that can adapt and respond to varying threats more effectively than traditional methods. Sola’s tools for developing custom AI security solutions are responding to the needs of CISOs who report impacts from AI-driven threats, with 78% citing such effects.

Sola aims to empower security teams to create tailored solutions rather than relying on pre-built software. The firm believes that a one-size-fits-all approach is inadequate for modern threat detection and prevention, given the diverse nature of AI threats. Since its launch, Sola has seen users creating over 1000 AI applications, reflecting strong market demand for customizable AI security tools.