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* Originally published on Calcalist , April 20 2023 Since the day ChatGPT was introduced in November 2022, it has become the fastest growing consumer product, putting the words ‘generativeAI’ in the mainstream. GenerativeAI is advancing at a breakneck speed.
Despite the war, in the last nine months Sequoia , Greylock and Accel all opened offices in Israel, and Founders Fund appointed a partner to cover Israeli deals. Not bad, considering the that all of this happened while Israel is fighting a war on seven different fronts.
During these nearly two decades, I’ve had the extraordinary privilege of being a front-row witness to Israel’s incredible startup scene. While it is going through a challenging period now, Israel continues to stand as a powerhouse of innovation and technology, ranking 6th in global innovation according to Global Finance.
This would not be as impressive during ‘normal times’ in Israel, but the fact that we’re seeing such level of activity in the middle of a war (with most airlines halting flights to Israel), this is not trivial. There were also 7 exits reported, exceeding $1 billion. Mazel tov Ori Soen and team Montara on your $5.4M
I’m not sure if it has to do with me, but refreshingly, Israel didn’t come up at all apart from the occasional question of how’s my family. Mazel tov Israel (Srulik) Dvorsky and team TailorMed on securing a $40M to connect patients with financial aid solutions! Kudos Yehuda Niv and team Spines on your $16.5M
The generativeAI market is exploding globally, with venture capitalists pouring $12.8 Israel is positioning itself as one of the potential leading hubs for generativeAIglobally. Israel is positioning itself as one of the potential leading hubs for generativeAIglobally.
2023 was a rough year for Venture Capitalists and startups alike Plummeting deal volume (US down 40%, UK %50, Israel 60%) back to 2017 volumes. Global venture funding fell 42% year over years to $248.8 To put in context, the major crossover funds Tiger Global, Temasek, Coatue and Softbank participated in $148B of VC deals in 2021.
Cohere debuted Command-A , a generativeAI model aimed at complex enterprise tasks that can run on minimal compute. billion and Sony is experimenting with AI-powered characters on Playstation. billion merger with Magic Software Enterprises to create the leading IT services company in Israel. to Saudi owned Scopely for $3.5
billion on 78 generativeAI deals —almost as much as was invested in all of the previous 5 years combined, according to PitchBook data. According to a new industry report by Skyquest , AI will contribute $15.7 trillion to the global economy, with $6.6 The globalgenerativeAI market was valued at USD 8.12
So much has happened in the generativeAI space globally, and in Israel since we published the previous version of the Israeli generativeAI landscape, back almost exactly five months ago. So far in 2023, generativeAI startups raised $16 billion, according to Dealroom. billion, a 2.5x
I was interviewed by TheMarker (Hebrew only) on why Israeli startups haven’t been part of the mega funding rounds in AI. Amidst this bleak funding environment, AI has been a saviour, reports the WSJ. Companies categorized as AI in Crunchbase raised $25 billion in the first half of 2023, representing 18% of global funding.
Earlier this month I spoke at the 2022 Israel Gaming Summit by Calcalist, Playtika and Google. The conference took place during a challenging time for gaming startups: in the same week Playtika, the largest gaming employer in Israel, announced it was laying off 615 people globally, of which 180 are in Israel.
A new report by F2 Venture Capital, Google Cloud and Deloitte Israel shines a spotlight onto the buzzing emerging AI landscape in Israel so I couldn’t resist covering it. On a high level: The Israeli AI startup ecosystem is booming, with over 2,150 active AI companies, representing ~30% of the local tech sector.
GenerativeAI is a beacon of hope In this grim scenario, Artificial Intelligence, and more specifically GenerativeAI, emerges as the global industry’s lifebuoy, attracting investments and elevating valuations of entities across the spectrum. The proposed judicial reforms caused some short-term uncertainty.
A study by the Israel Innovation Authority shows that tech employees pay over a third of all income tax in Israel. Finally, Walmart’s CEO Doug McMillon just reported that the company is using generativeAI to increase its productivity, updating 850 million product catalog entries 100 times faster than human-led methods.
In Lebanon, Hi **ah continues to shoot rockets aimed at civilians in Israel and Iran has once more threatened a ‘devastating response’ before the US elections. Iran threatened it will deal Israel a ‘devastating blow’ even before the US elections. There are still 101 Israeli hostages held in G**a.
It’s impressive to see what the self described ‘little red dot’ accomplished in its 65 years of independence and I couldn’t avoid comparing and contrasting to Israel. The CrowdStrike global outage is estimated to have cost Fortune 500 companies $5.4bn. 293 days passed since October 7th.
Despite the war in Israel over the past 9 months, both the rate of capital raising and exits of Israeli cyber startups in the first half of 2024 were the highest since 2021. Global: From VC Cafe : consumer startups still got Mojo! That’s why I also chose the quote of the week. BRINGTHEMHOME. billion raised between Jan.
In November 2022 I published a post titled “ generativeAI will go mainstream when it goes from playful to useful “, and I think you will agree that this transition is in full swing. 2023 was the year generativeAI went mainstream The pace of advancement in generativeAI has been astounding.
LINKS FOR YOUR BROWSER ISRAEL An interesting report and survey of 25 early stage venture funds in Israel (including us at Remagine Ventures ) shows the major trends in pre-seed and seed. Ori Goshen of AI21 Labs reveals what is broken in Enterprise AI and what’s needed for the next phase. Lots of data here.
Meta is on track to become the most used open source AI by the end of the year. And so much more it’s genuinely hard to keep up… QUOTE OF THE WEEK Israel continues to draw investors seeking bold, determined solutions to global challenges. Phan ( source ) GenerativeAI video is getting scarily good Thanks for reading.
Every year, LinkedIn recognises the most in demand companies in each of the major startup hubs, but this year they failed to include Israel. After several comments, the editor said that they will add Israel and a couple of other countries next week. Daniel Roth now said that Israel will be added next week.
Unfortunately, over a year later, Israel is now defending itself from threats across 7 fronts and there are still 101 Israelis held hostage in G**a. In total, generativeAI companies received $35 billion in 2024.AI AI companies have reached a combined value of $9 trillion. Global funding also dropped.
Israel must #BRINGTHEMHOME. In the wider tech world, GenerativeAI startups raised $14.4B of global venture capital volume. There’s been huge progress in AI in the past two weeks including new models from Meta , Google DeepMind , OpenAI searchGPT and voice models, Hugging Face SlolLM.
More about Firgun and why it matters on VC Cafe : [link] Israel’s preemptive strike on H**bolla* may have prevented a wider regional war, according to analysts. This week was marked by the liberation of Kaid Farhan Elkadi, a Bedouin Arab hostage who was kidnapped by Hamas during the 7 October attack on Israel.
For healing to begin, we must #BRINGTHEMHOME A friend, successful entrepreneur who took a company public, asked me for help on a presentation he was giving about the economic resilience of Israel. APPOINTMENTS Congratulations Eran Westman on your appointment as Managing Partner at Planven to lead growth investments in Israel!
This week was a bit crazy in Israel, with a series of mysterious blasts hitting H**bo**h in an operation that seems to be taken out of a movie script. Kudos Adi Perry and team with on securing a $10M seed round to turn cities into communities with generativeAI! ROI from GenerativeAI is a rising concern.
The tech ecosystem is crucial for Israel’s economy. Foreign investors doubled down on Israel, participating in 93% of the rounds. Israel’s biggest exit and Google’s largest acquisition ever. billion in revenue for ‘Prime Day’ is rolling out ‘Rufus’ generativeAI assistant to all U.S.
The tech sector is vital for the Israeli economy and exports, and while the 2024 figures were more positive than expected, it’s still hard for international investors to travel to Israel and get deals done. That’s why initiatives like Startup Nation Central , the Israel Export Institute ???? ????? Well done Ouriel Ohayon ??
It’s just been the first anniversary since ChatGPT burst into the world and launched the term ‘generativeAI’ into the mainstream. It’s been a big year for AI. billion invested in generativeAI startups globally in the first half of 2023 according to Pitchbook.
Israel receives people who were kidnapped from their homes, including 80 year old Gadi Mozes, or 29 year old Arbel Yehud, who was kidnapped from her home and kept mostly alone in tunnels in return to hundreds of convicted te *ists who committed heinous crimes. AI is having its moment. Mazal tov ??Shira Bonus: Israeli startup PLAYO.AI
From the founders who chose to start companies this year against the odds, to the new funds that managed to attract capital despite the news, and to all the participants in the Israeli tech ecosystem in Israel and abroad – keep on creating! Israel launches new programs to address AI talent shortage.
The acquisition of Wiz by Google for $32 billion in cash this week made waves across the whole tech ecosystem in Israel and beyond. It was Israel’s largest exit to date. LINKS FOR YOUR BROWSER ISRAEL From Unit 8200 to Wizs $32B exit: The blueprint for Israeli cyber success – what makes Israeli entrepreneurs so effective?
I hope his presidency brings stability to Israel, the quick return of the hostages and a new era of prosperity for America and its allies. The police took hours to settle the situation and Israel is sending two rescue flights to get them out. Well done Adiel Gopas on joining Third Point LLC to expand the Israel office!
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