Dream, an AI cybersecurity startup, has raised $100 million in a Series B funding round led by Bain Capital Ventures to bolster its mission of defending nations and critical infrastructure from cyber threats. Other investors include Group 11, Tru Arrow, Tau Capital, and Aleph, pushing Dream’s valuation to $1.1 billion.
“Sophisticated cyber-attacks on our critical infrastructure are increasing in both prevalence and complexity,” Sebastian Kurz, co-founder and president of Dream, said in a press release. He said the company is “on a mission to empower nations against what is the defining national security concern of our era.”
Kurz, a former Austrian prime minister, co-founded Dream in 2023. Unlike traditional cybersecurity firms that retrofit AI into their systems, Dream was built with AI as its foundation, enabling it to autonomously detect, assess, and counteract cyber threats.
Tackling Modern Cyber Threats with AI
The funding comes at a time when cyberattacks on government agencies and critical infrastructure are growing in scale and complexity. Over the past few years, governments worldwide have faced a wave of increasingly sophisticated cyber threats, including situations such as:
- Colonial Pipeline Attack (2021): A ransomware attack on one of the largest fuel pipelines in the U.S. led to widespread fuel shortages across the East Coast.
- Chinese Espionage on European Governments (2023): Cyber intelligence reports revealed that China-backed hackers had been conducting long-term cyber espionage campaigns targeting European Union institutions and national defense agencies.
- Iranian Cyberattacks on Israel (2023-2024): Iranian-linked groups launched coordinated cyberattacks on Israeli power grids, water infrastructure, and financial institutions.
These incidents show how cyber threats are growing in frequency and sophistication, forcing governments to adopt AI-powered defense systems.
Dream’s Cyber Language Model (CLM) is the backbone of its approach. CLM leverages AI-trained models designed for cyber operations. It assesses security data, detects anomalies, and automates real-time defense strategies. This enables nations to respond more efficiently to emerging cyber threats without relying solely on human intervention.
However, cybercriminals can still exploit AI by feeding misleading data into these systems to bypass defenses. Additionally, AI’s role in national security could raise ethical and regulatory questions. Governments relying on AI for cyber defense must ensure transparency and compliance with data privacy laws.
Strategic Growth and Expansion
Dream has already made a significant impact, reporting $130 million in annual government sales in 2024. The funding will be used to enhance AI capabilities, expand into new global markets, and recruit top talent in AI and cyber defense, the company said in a press release.
Dream’s headquarters are in Tel Aviv, Vienna, and Abu Dhabi, strategically positioning the company to work closely with global defense agencies and cybersecurity experts. With its AI-first approach, Dream attempts to pioneer a new standard in autonomous cyber defense, moving beyond traditional security tools to develop intelligent, self-learning systems capable of countering national security threats in real time.
As cyberattacks continue to evolve, the company aims for its technology to play a key role in helping governments stay ahead of adversaries — turning AI into one of the most potent assets in national defense.