The founder of NSO Group, the Israeli spyware company that became a global lightning rod for surveillance abuse, is making a high-profile return to the tech world. Years after stepping away amid intense scrutiny, Shalev Hulio is now backing a new cybersecurity startup with ambitions that rival the biggest players in the sector.
According to people familiar with the project, Hulio is helping build a company that aims to raise as much as $1 billion and position itself as a next-generation security firm. The venture is designed to focus on protecting governments and large organizations from sophisticated cyber threats rather than enabling surveillance. Supporters say this marks a clear break from the business model that defined NSO Group.
NSO rose to prominence through its Pegasus spyware, which allowed governments to infiltrate smartphones. While marketed as a tool for fighting crime and terrorism, Pegasus was repeatedly linked to the targeting of journalists, activists, and political opponents.
The new startup is being framed as a redemption effort. People involved say the company will emphasize defensive cybersecurity, including protection against hacking, disinformation, and digital espionage. The goal is to sell advanced security systems that help governments and enterprises defend critical infrastructure and sensitive data.
Hulio has reportedly told associates that lessons learned from NSO’s downfall are shaping the new venture. That includes tighter oversight, clearer customer rules, and more transparency around how the technology is used. Whether those safeguards will satisfy regulators and critics remains an open question.
Raising $1 billion would be a bold move in today’s funding climate. Venture capital has become more cautious, especially in areas tied to government surveillance and national security. However, cybersecurity remains one of the few sectors still attracting large checks, driven by rising geopolitical tensions and a surge in state-sponsored cyberattacks.
Investors see demand growing for tools that protect elections, military networks, energy grids, and financial systems. If Hulio’s startup can convincingly position itself on the defensive side of cyber conflict, it may find receptive backers despite his controversial past.
Still, the legacy of NSO looms large. Human rights groups have warned that any return by its founder deserves close scrutiny. They argue that promises of ethical use must be backed by enforceable controls, not just internal policies. Regulators in the U.S. and Europe are also expected to monitor the company closely if it begins selling to governments.
The cybersecurity industry itself is divided. Some executives believe Hulio’s technical expertise and connections could help build a powerful new player. Others worry that reputational risks could scare off customers and partners, especially in democratic countries sensitive to surveillance abuses.
For Hulio, the stakes are personal as well as financial. The success of this new venture could reshape his public image and determine whether he is remembered solely for Pegasus or as an entrepreneur who adapted after failure.
As cyber threats continue to escalate worldwide, demand for advanced security tools is unlikely to fade. Whether Hulio’s new startup becomes part of the solution or reopens old debates about accountability will depend on how it operates once it steps into the global spotlight.
