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Taking stock of the venturecapital market in 2023, it’s clear to see that we’re in a transition point. For the past 10 years, with interest rates near zero, VC investors plowed record amounts into tech startups and enjoyed a seemingly ‘easy’ investing environment.
Goldman Sachs economists predict that 300 million jobs could be affected by the latest wave of AI. Simultaneously, new startups are forming, and venturecapital is already pouring money into the field at an outstanding rate that will only accelerate the impact of this generation of AI.
Mention that you do “Consumer tech” as a startup founder and you’d be limiting your funding options to one third of the venturecapital 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.
* 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.
Israeli startups raised $2.43 Israel continues to be a relatively liquid market Another strong indicator for the strength of the Israeli startup ecosystem has been exits/ liquidity, especially given the shortage of exits in the venturecapital industry.
especially if the startup already has a product and revenue? While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. Pre-seed round tends to be the first ‘institutional’ round of funding in a startup. A founder asked me what makes a $2M round “pre-seed”?
Paul Graham’s recent essay, Founder Mode , describes the mindset that founders need to adopt to navigate the early stages of building a startup, and how they’re different than ‘manager mode’ which is traditional management/corporate best practices. They often provide hands-on operational assistance beyond just capital.
ChatGPT’s advanced voice mode and Eleven Labs are setting new benchmarks in conversational AI by enhancing voice quality and realism, NotebookLM’s natural voice podcast took the Internet by storm and new open source technologies are making high quality voice cloning easier than ever. Let’s dive in!
This is not only helpful for startups and investors who are actively deploying in those sectors, but also to founders at the beginning of their journeys who are looking for ‘requests for startups’ or problem areas worth diving into. I chose to focus on 5 areas that are particularly relevant to us at Remagine Ventures.
There’s an interesting thing happening in the generativeAI world. More and more, established companies are leaning into generativeAI by either adding generativeAI features to their existing suite of tools or partnering with AI companies (mostly OpenAI or the open source HuggingFace) to launch entirely new products.
Well done Assaf Rappaport and team Wiz on your undisclosed round of funding to continue the journey of as the fastest growing Israeli startup in history! Way to go Itamar Golan and team Prompt Security on your $18M series A to help companies secure their generativeAI tools! 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.
We must #BRINGTHEMHOME It’s been a slower news week in Israeli startups due to the holidays of Sukkot and Simchat Torah. NEW FUNDS Congratulations Gili Raanan and team Cyberstarts on the new (and fourth) $60M fund to invest in seed stage Israeli cybersecurity startups! AI companies have reached a combined value of $9 trillion.
AI has become the year’s venturecapital buzzword. I covered my personal journey to venturecapital, 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).
In July 2024, Israeli startups raised $703 million in 28 deals, more than double the amount raised in July 2023 (before the war). Proud to support the ecosystem with Remagine Ventures as we are in the process of closing 4 deals right now. In the wider tech world, GenerativeAIstartups raised $14.4B
It’s easy to find bad news about venturecapital these days. In other words, the venturecapital bust has only just started. 2023 was a rough year for VentureCapital and for startups, and it might get even worse. Global venture funding fell 42% year over years to $248.8
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
I was interviewed by TheMarker (Hebrew only) on why Israeli startups haven’t been part of the mega funding rounds in AI. I thought it’s a good timing to elaborate on where I see opportunities for Israeli startups in this rapidly growing space. billion, a 73% YoY drop, according to a new report by Viola.
Peter Thiel The statistics for startup success are well known. About 90% of startups will fail within three years of starting. Within the group of startups that succeeds, the returns for venture investors are concentrated in few companies. The most important companies are those that others don’t see as valuable.
Venturecapital is down 36% globally QoQ and a lot of startups face an uncertain future. The nature of venturecapital cycles. Venturecapital is cyclical in nature, meaning that there are ups and downs in the market. In a down market, it can be more difficult to raise venturecapital.
GenerativeAI is well on the way to becoming not just faster and cheaper, but better in some cases than what humans create by hand. Creative AI or Creative automation is increasing at a rapid pace. The generativeAI application layer (Source: Sequoia ). Andrew Chen, “What’s next for marketplace startups?
It’s a bit crazy to think that even a year ago, the term ‘generativeAI’ was not exactly on everyone’s lips. To put things in context, let’s start with the basics: 2023 witnessed an impressive influx of $15 billion invested in generativeAIstartups, significantly surpassing last year’s $4 billion.
As competition heats up, plowing money into foundation model startups is fraught with risk. He talked about where we are in the timeline of generativeAI and it made me realise that we’re making an interesting shift now. But the challenges in LLMs don’ t remotely mean that AI is dead.
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. Meanwhile in the US, B2C startups raised $100 billion in 2022, 40% of the total funding.
Earlier this month we ( Remagine Ventures ) teamed up with Taylor Wessing (a leading UK law firm specialising in tech) on “Into the Metaverse”, a joint event to discuss the opportunities in gaming, crypto/web3 and Metaverse. We wanted to share the perspectives of startups, platforms, investors and brands. Looking ahead.
The rumours on the death of consumer startups have been greatly exaggerated, it seems. of all venturecapital investment in 2023 went to consumer companies in the US, according to Carta. It analysed 12,000 venture backed companies that raised a series B since 2010 and categorised 7,800 of them as B2C or B2B.
I learned so much about the culture, current events, and the Israeli venturecapital industry. After spending just two months in the industry, I recognize the importance of venturecapital for spurring innovation, especially in Israel. I searched for internships that would allow me to explore generativeAI.
Yesterday was Halloween (also my birthday) and Israeli startups have certainly received a lot of ‘candy’ As if in a parallel universe to the war, over the past week alone Israeli startups raised over $500M in investments. Will the Israeli startup ecosystem overcome them? We must #BRINGTHEMHOME. absolutely.
With a combined value of $14 Trillion (representing 32% of the S&P 500), these companies invest $400 billion a year into frontier technologies, namely AI and cloud infrastructure. billion in VC deals, more than the UK venture investments per year combined. So far in 2024, the magnificent seven invested $24.8
Readers of VC Cafe will know that I’m a big fan of startup landscape s. A new report by F2 VentureCapital, Google Cloud and Deloitte Israel shines a spotlight onto the buzzing emerging AI landscape in Israel so I couldn’t resist covering it. I’ve added it to my 2024 Israeli startup landscape collection.
The report emphasises the urgency of investment in startups and education for underrepresented populations to secure one of the main sources of tax revenue. In the wider tech world, Google launched Pixel 9, its first AI powered phone and a new image generator, Imagen3 , criticised for being too censored. for its defence tech.
A bright spot is emerging in early-stage funding, signaling renewed investor risk appetite and startup momentum. The revival of seed funding is an encouraging sign of a return to startup growth after a period of caution. More investors are again willing to bet on young companies, providing the capital for the next wave of innovation.
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! since April, more than all Energy startups have raised in 2024. BRINGTHEMHOME.
For example what if you could pay an AI agent to file your taxes, manage your stock portfolio, write your content, summarise your meetings and remind you of action items, and so on and so on. In practice however, AI agents are unfortunately still not so reliable, and you’d be taking a big risk by using them blindly.
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 VentureCapital here.
In this post, I collated some of the latest research published on Agentic AI , with the aim to share knowledge, primarily with founders, about what can be built in this space. Companies such as Israeli startup Weavy.ai , which caters to professional designers. Sapphire Ventures created a dedicated landscape for AI powered design tools.
But while there is an ongoing war for the past 11 months, startups continue to innovate and make progress. The cover of the newsletter this week is dedicated to gaming, as Israeli startup SuperPlay was acquired by Playtika for $700M (with an earn out potential reaching up to $1.9 billion based on milestones).
All the videos from the event , as well as our newly published landscape of the UK startups building the Metaverse can be found here. remain to be solved. This video is a short excerpt from my panel on the opportunities for brands and platforms in the Metaverse. Video copyright, Taylor Wessing ; automated video summary credit: Munch ).
New details about the real costs of training the model (much higher) and the source of the data (distilled from OpenAI against the T&Cs) are slowly surfacing, but it’s clear that Chinese AIstartups are here to stay. However, despite the initial panic, venturecapital funding for AI remains robust.
Israeli startups raised $7.8 While the figures are slightly down from 2023, they reflect the resilience and strength of the Israeli startup ecosystem, even at a time of war. More interesting figures in the Startup Nation Central report linked below. More interesting figures in the Startup Nation Central report linked below.
We must #BRINGTHEMHOME It’s been a tough year for Israeli startups, but they fought hard to keep their companies alive, despite dealing with war, record low venturecapital volumes, and the usual challenges of running a startup. Israeli startups deliver #NOMATTERWHAT. Salesforce spent $2.6 Well done Marina S.
Their scale and resources enable them to innovate rapidly, making it challenging for startups to compete directly in this space. If startups do decide to compete on this ground floor, then they need to raise billions of dollars, most of which seems more like a Capex expense. The greater opportunity lies within the application layer.
While the seemingly overnight success of ChatGPT was culmination of more than a decade of iterations in ‘creative automation’, the progress we’ve witnessed in AI over the last couple of years is poised to forever change the landscape of content creation. But GenerativeAI has yet to live to that hype.
Today, 100s of billions of dollars in private capital have been invested in 1,000s of AIstartups. Synthetic data generation-to feed false information. Data analysis – for AI-assisted classical attack generation. AI Attack Surfaces. These technologies will transform businesses and government agencies.
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