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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.
especially if the startup already has a product and revenue? 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%! A founder asked me what makes a $2M round “pre-seed”?
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. It grew revenues by 6400% from $1M in November 2023 to to $65M today in just one year.
On the B2C side, with advancements in real-time conversational AI, businesses can now deliver seamless, interactive voice experiences that feel increasingly natural and personalised. For example Speak and Praktika, which use voice AI for language learning, grew very quickly to over $20M in revenue in the last 12 months.
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.
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
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.
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.
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
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 study by the Israel Innovation Authority shows that tech employees pay over a third of all income tax in Israel. The report emphasises the urgency of investment in startups and education for underrepresented populations to secure one of the main sources of tax revenue. We must #BRINGTHEMHOME Now. Anduril Industries raised $1.5
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.
Kudos Iftach Ian Amit and team Gomboc AI on your $13M seed round to eliminate the security backlog that delays critical business transformation! Well done Erez Agmon and team Vayu on your $7M seed round to redefine billing and revenue management with AI! There’s a lot to celebrate in our “small’ community!
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.
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.
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.
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. billion in revenue this year). Microsoft and BlackRock are teaming up for a new $100 billion AI infrastructure fund. 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 ? What do you think?
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.
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