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A new report collated by F2 Capital and derived from a survey of 25 early-stage VCs in Israel (including our input at Remagine Ventures ), analysed investment trends for pre-seed in 2024 and reviewed the expectations for 2025. It also notes that consumer-facing generativeAI apps with low technical barriers may be overvalued.
* 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.
Mention that you do “Consumer tech” as a startup founder and you’d be limiting your funding options to one third of the venture capital funds (in Israel that figure is probably closer to 10%). But change seems to be brewing in the B2C space, powered by the fast advancements in AI and generativeAI.
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.
Data by Carta (mostly US companies) reveals that although on average startups saw a 50% reduction in funding in 2023 (the impact in Israel was closer to 65%) pre-seed funding rounds rose by 51%! Sam Altman recently said that we’re not far from the day that we’ll see a billion dollar company with one or few employees.
Agentic Automation for Enterprise Functions: GenerativeAI agents are being deployed to automate complex business processes across various functions. At Remagine Ventures, we invest in pre-seed startups in Israel and UK. This is a pivotal moment for startups to innovate, collaborate, and shape the future of voice technology.
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
During these nearly two decades, I’ve had the extraordinary privilege of being a front-row witness to Israel’s incredible startup scene. I’ve seen the explosion of new unicorns created, from cybersecurity pioneers to AI disruptors and billion dollar revenue gaming startups.
GenerativeAI will really become magic when it moves from 'playful' to 'useful' – we will use multiple generativeAI tools at work in the future, like we use grammarly and canned responses today… AI will become more vertical, and specific per role — Eze Vidra (@ediggs) November 5, 2022.
The generativeAI market is exploding globally, with venture capitalists pouring $12.8 Israel is positioning itself as one of the potential leading hubs for generativeAI globally. Israel is positioning itself as one of the potential leading hubs for generativeAI globally.
While Israeli startups successes are well known in the B2B space (cybersecurity, enterprise tech, devops…), B2C startups are unsung heroes… The landscape of B2C tech in Israel is blossoming, despite several challenges. B2C Venture Capital Investments in Israel To the most part, Israeli VCs shy away from B2C startup investments.
The Israeli GenerativeAI landscape. I published my first list of Israeli startups in GenerativeAI in Calcaslist back in October 2022. Since then, we’ve seen an explosion in the number of generativeAI startups worldwide, as well as in Israel.
I covered my personal journey to venture capital, what makes our partnership work at Remagine Ventures , and gave an intro to GenerativeAI, a current theme that connects to our investment thesis (we made 3 investments in the space). Some use general data sets, and others train their models on proprietary data. Jasper, Copy.ai
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 The global generativeAI market was valued at USD 8.12 In 2022, VCs poured $1.37
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
The state of GenerativeAI startups in Israel According to The Global AI Index by Tortoise Media, the first index to benchmark nations on their level of investment, innovation and implementation of artificial intelligence, Israel is the 7th most attractive AI hub globally. Are they too late?
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. And not a particular sector, but AI startups, in particular generativeAI attracted close to $50 billion in funding last year, globally. GenerativeAI is game changer.
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.
As a participant of Onward Israel , I had the incredible opportunity to intern in Tel Aviv and gain valuable experience over my two month stay. After spending just two months in the industry, I recognize the importance of venture capital for spurring innovation, especially in Israel.
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.
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. To add more heat, Microsoft launched generativeAI search results for Bing. AI at Meta launched LLaMa 3.1,
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 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.
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. Q2 2024 is already a record quarter for venture capital investment in GenerativeAI startups, with the quarter not yet closed. BRINGTHEMHOME.
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. I wrote about the major takeaways on VC Cafe and you can access the report by F2 Venture Capital 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. Interesting overview of vertical AI companies by IVP ( source ) Revenue per employee.
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. Funding for U.S. million in Q3 year over year.
Israel must #BRINGTHEMHOME. In the wider tech world, GenerativeAI startups raised $14.4B 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. in Q2 2024 alone, which is 16.5%
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.
But in the coming age of generativeAI, endless synthetic content and misinformation – there might be an opportunity for traditional media companies to regain their reputation as a 4th branch within a democracy. How can media companies transform generativeAI from threat to opportunity ?
In December 2004, 19 years ago, I started VC Cafe with the simple goal of sharing insights, resources, and perspectives on venture capital and startups (with a spotlight on Israel). Looking Back: A Year Defined by GenerativeAI 2024 will go down in history as the year generativeAI truly went mainstream.
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. It decouples visual encoding for multimodal understanding and generation.
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?
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