After nearly three decades since their original exit with Memco Software, a prominent cohort of Israeli cybersecurity entrepreneurs has returned to the sector with a second ambitious venture.
Memcyco, a digital risk protection platform specializing in real-time defense against phishing and account takeover attacks, announced a $37 million Series A funding round in January 2026, bringing total capital raised to $47 million.
The funding demonstrates significant investor confidence in the company's mission to intervene earlier in the attack timeline, a critical gap in existing defenses as artificial intelligence reshapes the threat landscape.
The oversubscribed round exceeded initial expectations, with the founding team originally planning to raise $25 million before demand pushed the total to $37 million.
The Founding Team's Proven Track Record
The Memcyco founding team brings decades of experience building and scaling cybersecurity enterprises. Israel Mazin serves as CEO, having previously founded and led Memco Software, which was acquired for approximately $550 million by Computer Associates in 1999 after Platinum Technology's initial acquisition valued it at more than $400 million.
Eli Mashiah, now Chief Technology Officer, held a 16 percent stake in Memco and similarly benefited from that exit.
Gideon Hazam, Chief Operating Officer, worked at Memco as Vice President of International Operations from 1997 to 2000 and later held senior positions at OpTier, another venture co-founded by Mazin and his brother Ori.
The team also includes Ori Mazin as Chief Revenue Officer, completing a management core that has worked together across multiple successful ventures spanning more than 25 years.
The group initially agreed to step away from cybersecurity following Memco's exit, pursuing real estate and other business ventures before deciding to re-enter the sector four years ago.
"We had a long agreement not to do anything in cyber for several years," Mazin explained, noting that the team found the market's unresolved security problems compelling enough to revisit their area of expertise.
The Threat Landscape Driving Growth
Memcyco's emergence comes at a critical inflection point in cybersecurity. Account takeover attacks have surged dramatically, rising 250 percent in 2024 and 2025, with financial losses projected to reach $343 billion by 2027.
More broadly, 83 percent of organizations experienced at least one account takeover attack in the past year, while 26 percent face such attempts every single week.
The proliferation of artificial intelligence has fundamentally altered how attackers operate. AI-powered phishing kits now allow criminals to replicate legitimate websites nearly instantaneously, launching attacks at unprecedented scale.
Research shows that AI-generated phishing emails achieve a 54 percent click-through rate compared to just 12 percent for human-written variants. A recent analysis found that generative AI can produce a phishing email in five minutes that would have taken human experts 16 hours to craft.
These AI-driven capabilities have lowered the barrier to entry for cybercriminals.
Less sophisticated actors can now leverage AI tools to conduct powerful campaigns, fundamentally shifting the threat profile away from nation-state actors toward a broader criminal ecosystem empowered by accessible technology.
Memcyco's Differentiated Approach
Unlike traditional security solutions that operate reactively after identity theft or account compromise, Memcyco intervenes much earlier in the attack sequence.
The company's platform detects and disrupts phishing and account takeover attempts in real time, before attackers obtain valid credentials or cause damage.
The technology operates on an agentless basis, meaning organizations can deploy protection without requiring end users to install software on their devices—a critical advantage for consumer-facing businesses and financial institutions that cannot mandate such installations.
Memcyco also provides detailed intelligence about attackers and affected users, enabling organizations to take preemptive remediation actions.
The company has already thwarted more than 3.5 million account takeover attempts and demonstrated compelling unit economics.
Beginning to sell its product in 2023, Memcyco grew sevenfold in 2024 and expects to triple that growth in 2025, indicating strong product-market fit and accelerating revenue expansion. The company currently employs 90 people, with approximately 60 based in Israel.
Investor Syndicate and Strategic Value
The Series A round was led by NAventures, the corporate venture arm of National Bank of Canada, alongside E.
León Jimenes and Pags Group, the family office of Steve Pagliuca, co-chairman of Bain Capital. Existing investors Capri Ventures and Venture Guides participated in the round.
NAventures, established in 2017, focuses on early-to-mid-stage technology companies shaping the future of financial services, with offices in Montreal and Tel Aviv.
The firm has made over 30 investments across Canada, the United States, and Israel, with particular emphasis on cybersecurity and fintech. Its participation signals confidence in Memcyco's ability to address critical needs within the financial services ecosystem.
E. León Jimenes, a centuries-old family-controlled holding company based in the Dominican Republic, maintains a diversified portfolio spanning consumer goods, financial services, healthcare, and technology sectors, with investments primarily across the Americas.
The firm's entrance into the round reflects broader investor appetite for cybersecurity solutions addressing emerging fraud threats.
Pags Group, managed by Pagliuca, brings significant capital deployment experience across venture, private equity, and real assets, with particular focus on healthcare, technology, sports, and other high-growth sectors.
Capri Ventures, a Boston-based early-stage firm, has invested in cybersecurity extensively, with an investment strategy emphasizing companies demonstrating product-market fit and customer validation across enterprise software and related domains.
Capital Allocation and Geographic Expansion
Memcyco plans to deploy the $37 million Series A proceeds toward expanding its cybersecurity platform, developing new products, and accelerating sales activity in North America and Latin America, both through direct operations and business partnerships.
The geographic focus aligns with investor participation from NAventures' North American base and the Latin American presence of E. León Jimenes.
The funding also enables the company to strengthen its international team.
Currently headquartered in Ramat Gan, Israel, with offices in Boston and across Latin America, Memcyco intends to build out sales and engineering capabilities to serve the global enterprise market.
Competitive and Market Context
Memcyco operates in a cybersecurity landscape where investment and M&A activity remain robust despite broader venture capital volatility. Recent comparable transactions and funding rounds underscore sustained institutional appetite for fraud prevention and identity security solutions.
The company's focus on preemptive rather than reactive defense positions it against legacy providers and newer entrants alike, with differentiation centered on early intervention before credential compromise occurs.
Israel Mazin emphasized the competitive opportunity: "Enterprises have spent billions building fortress walls around their login pages, but attackers have moved the battlefield.
We are shifting the paradigm from reactive takedowns to proactive, real-time disruption." This positioning addresses a fundamental blind spot in existing market offerings, where most solutions activate only after attackers have already obtained valid credentials.
Strategic Implications
The Memcyco funding round signals several broader market trends. First, veteran entrepreneurs with proven exits remain differentiated capital deployment opportunities for institutional investors seeking experienced leadership.
Second, cybersecurity remains a non-negotiable corporate budget category even during broader economic uncertainty, with AI-accelerated threats justifying significant capital allocation. Third, geographic diversification—with investors spanning Canada, the Dominican Republic, and the United States alongside Israeli operations—reflects the globalized nature of modern cyber threats and venture capital.
The company's growth trajectory and investor confidence suggest that the founders' original ambition to build "a large and meaningful company in its field, not a quick exit" remains achievable.
With momentum accelerating across revenue, team, and market opportunity, Memcyco exemplifies how proven entrepreneurs can capitalize on structural shifts in technology-driven risk management to build sustainable, scaled enterprises.
