Modelyo Raises $17M Series A Led by OlivTree for Sovereign Confidential Cloud

Modelyo Secures $17M Series A

Modelyo, an Israeli cybersecurity startup, has raised a $17 million Series A round led by OlivTree. The round also included participation from Seth Merrin and David Phelps. The funding was announced on October 22, 2026.

What Modelyo Does

Modelyo is building a Sovereign Confidential Cloud platform that allows organizations to run sensitive workloads, managed services, and AI systems on third-party cloud infrastructure while retaining control of their data and encryption keys. The technology combines confidential computing, hardware-based encryption, continuous verification, and a zero-trust architecture to protect data while it is stored, transmitted, and processed.

A key differentiator is that customers can cryptographically prove protection rather than relying on provider assurances. This approach is designed to address the trust gap that often arises when sensitive data is processed on external cloud infrastructure.

Target Customers

Modelyo serves defense agencies, governments, banks, healthcare organizations, and critical-infrastructure operators. Its geographic reach spans Israel, the US, Europe, South Korea, India, and the UAE.

Founding and Stage

Founded in 2024 by entrepreneurs with defense-systems backgrounds, Modelyo has moved to the Series A stage with this round. The company's focus on sovereign, confidential cloud capabilities positions it in a segment where data control and verifiable protection are increasingly important for regulated and security-sensitive organizations.

Deal Summary

• Company: Modelyo
• Round: Series A
• Amount: $17,000,000 USD
• Lead Investor: OlivTree
• Other Investors: Seth Merrin, David Phelps
• Announcement Date: October 22, 2026
• Headquarters: Israel
• Founded: 2024

Strategic Context

The Series A funding provides Modelyo with capital to continue developing its Sovereign Confidential Cloud platform and to support its work with defense, government, financial, healthcare, and critical-infrastructure customers. The involvement of OlivTree as lead investor, alongside individual investors Seth Merrin and David Phelps, signals confidence in the company's approach to confidential computing and data sovereignty.

For acquisition-oriented observers, Modelyo represents a player in the confidential computing and sovereign cloud space, a category that intersects with cybersecurity, cloud infrastructure, and AI workload protection. The company's defense-systems founding background and its focus on cryptographic proof of protection may be relevant to buyers interested in security technologies serving government and regulated markets.