Israeli web3 security company SphereX, founded by the former CISO of Bank Leumi and Israel Defense Forces veterans, has successfully raised $8.2 million in seed funding to advance its technology aimed at preventing cryptocurrency hacks.
The funding round saw participation from prominent investors including Aleph, Pillar VC, Fabric Ventures, Mensch Capital Partners, and various angel investors.
SphereX has recently introduced SphereX Protect, a security solution designed for smart contracts. The company asserts that billions of dollars have been lost due to vulnerabilities in smart contracts, which were often previously audited by third-party security firms.
SphereX Protect functions as an integrated security module within the smart contract, effectively preventing hackers from exploiting code weaknesses. It operates without the need to pause the smart contract or implement circuit breakers, allowing normal contract operations to continue while thwarting malicious activities. As an on-chain module, it offers verifiable, continuous protection while upholding the principles of composability and anti-censorship.
Oren Fine, CTO of SphereX, stated: “We are the only existing solution today that provides Dapps with what they need to win users’ trust — a security solution that allows business continuity under attacks, and is compliant with whatever level of decentralization they choose. This enables protocol owners to ensure a high level of security and maintain user trust, knowing that users will not lose their funds or access due to pauses, even during an attack.”
SphereX is part of a growing sector attracting venture capital interest, with other startups like Cube3.ai, which focuses on securing smart contracts by blocking malicious transactions, also recently emerging from stealth mode after raising $8.2 million in seed funding.