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Don’t Sleep on Consumer Tech: AI is Changing Everything

VC Cafe

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 generative AI.

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How the pre-seed round made a comeback in 2024

VC Cafe

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”?

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Weekly #Firgun Newsletter – November 29 2024

VC Cafe

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.

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The Booming Voice AI Landscape: A VC Perspective

VC Cafe

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.

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18 years of VC Cafe

VC Cafe

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.

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Weekly #FIRGUN Newsletter – November 22 2024

VC Cafe

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

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Generative AI will really take off when it moves from playful to useful

VC Cafe

Generative AI will really become magic when it moves from 'playful' to 'useful' – we will use multiple generative AI 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.