Palo Alto Networks may acquire Israeli startup Koi

The acquisition follows a series of multi-billion dollar acquisitions by Palo Alto Networks, including those of CyberArk and Chronosphere, according to CTECH . CEO Nikesh Arora visited Israel last month to scout local talent. He emphasized that the rapid rise of AI demands a consolidation of endpoint security solutions.

From experiment to million exit

Koi was founded in 2024 by veterans of the Israeli army’s elite 8200th Special Forces Unit. The startup attracted global attention last year when its founders exposed a security vulnerability in the VSCode Marketplace. Using a fake extension, they managed to “infect” over 300 organizations within a week to demonstrate the need for better oversight.

This experiment led to the development of the Supply Chain Gateway. This platform serves as a central control point for all incoming software within a company. Using the AI ​​engine “Wings,” Koi identifies threats that traditional scanners miss.

Although Koi has only raised $48 million in capital to date, the platform already protects over 500,000 endpoints at several Fortune 50 companies. For the founders and investors, including Team8 and Battery Ventures, the deal represents a lightning-fast and lucrative exit.