Shmuel Chafets

Is it shopping season for Israeli technology? The recent surge in M&A activity in Israel is the most significant sign of hope and optimism I’ve seen since October 7th. It demonstrates the potential of Israeli tech and the faith placed in it by top global companies. When technology leaders choose to further expand into Israel and acquire local teams, you know financial outlooks are positive. In cybersecurity - often the poster-child of Israeli tech - we’ve seen five acquisitions in quick succession totaling more than $1Bn. Flow Security by CrowdStrike (~$200M), Avalor Security, a Zscaler Company ($350M), Gem Security (acquired by Wiz) ($350M), Silk Security by Armis ($150M) and Entitle by BeyondTrust (~150M). All are led by exceptional individuals, well done! Perhaps more telling is the emerging AI industry. Last week NVIDIA announced its acquisition of two companies for a combined value of $1Bn. Congratulations RunAI ($700M) and Deci AI ($300M). Mainstream media is so focused on the voices of a racist minority calling for boycotts and divestments that they fail to capture actual news. Antisemites might yell the loudest, but the actions of multinational corporations speak louder than words. I am optimistic about the future. Are you?

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Israeli tech is at a crossroads On the one hand, we see a surge in tech, particularly with AI. On the other hand, we're dealing with a decrease in economic activity and a potential shift in the job market While it's true that the current situation in the country has led to a decrease in economic activity, we must also consider the impact of AI on the job market. Companies may be using the current economic climate as a cover to transition to AI-driven operations, a move that isn't typically popular… The rapid development of AI, such as OpenAI's GPT-3, suggests that we may see a big shift in the job market sooner than anticipated. While this is great for efficiency, it also raises concerns about job security, and the future of jobs Furthermore, the job market, especially in the tech sector, is becoming increasingly competitive There are fewer jobs than there are people looking for work. This issue is particularly pronounced in the Haredi community, where job opportunities are even scarcer. The community faces additional challenges, including bias and a lack of experience. Most training programs today don't offer job experience or placement, leaving individuals to navigate the job market on their own Given these circumstances, #entrepreneurship emerges as a viable path… knowing how to run a business and possessing skills that can't be easily replicated by AI can be a real advantage Along with those challenges, another major question is… is Israel a conducive environment for setting up a business?   The Israeli government's stance towards businesses, particularly #startups, plays a big role in shaping the country's economic landscape. High taxes and stringent regulations can deter entrepreneurs, pushing them to relocate their businesses to countries like the US This trend is worrying… as startups and new businesses are the key drivers of economic growth. A decrease in the number of companies not only reduces job opportunities but also hampers growth The government's role in fostering a supportive environment for businesses cannot be overstated Initiatives to ease regulations, provide tax cuts, and offer support can significantly enhance the business landscape, encouraging entrepreneurs to establish and grow their businesses in Israel While it's true that thriving businesses may not always equate to more jobs, particularly because of #AI, they do contribute to economic growth. The profits generated by these businesses can be reinvested into the economy, catalyzing further growth The next few years in this country are about striking a balance between embracing tech, entrepreneurship, and ensuring job security, as well as creating an environment conducive for building businesses What are your thoughts on this? Let me know in the Comments section below Safra-Tech Calcalist כלכליסט CTech by Calcalist #startupnation #artificialintelligence #israelunderfire

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There is something very special about monday.com, ironSource, Yotpo, Lemonade, Fiverr, Playtika, and the other B2B startups that were founded in the early 2000s. They built the playbook that the current Israeli startup ecosystem stands on. I would love to interview these founders: Eran Zinman & Roy Mann CEO monday.com Tomer Tagrin. CEO Yotpo Tomer Bar-Zeev CEO ironSource Micha Kaufman ceo Fiverr Daniel Schreiber CEO Lemonade Or any founders that built from the early 2000s and still building. If someone can make an intro or ask them directly to come on the Founder StorieZ Podcast I would greatly appreciate it 🙏

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IVC Data and Insights report on the Israeli venture market for Q1-Q3 2024 reveals: - $7.4 billion invested in Israeli startups, surpassing the entire 2023 total of $6.9 billion. - $13 billion generated from exits, a 26% increase from 2023's $10.4 billion. - 23% surge in foreign investments year-over-year. - 67% of capital sourced from global investors, with 33% from Israeli funds. - $2.7 billion secured by early-stage startups, the second-highest figure in Israeli startup ecosystem history (after 2022's record). These figures demonstrate investors' confidence in the long-term sustainability of the Israeli startup ecosystem. Trust received, challenge accepted. We're building the future, brick by brick.

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Is the Israeli business community truly ready for high-achieving Haredi professionals to take leadership roles in the tech ecosystem? We are, as Safra-Tech’s mission is to integrate Haredi professionals into the tech ecosystem, with a focus on #entrepreneurship and #startups We're not merely asking how we can slot Haredi workers into low-level roles… we're asking a far more ambitious question: How can we make Haredi society a key stakeholder in the tech ecosystem? It’s not about individual Haredi employees entering the tech world… it’s about a shift in Israeli society’s perspective, becoming key influencers and decision-makers, and having the ability to progress, to secure better jobs, and to make a real impact This is a wake-up call, not just for Haredi society, but also for the wider Israeli business community. As an example, the current #VC scene (which drives tech) in Israel is centralized, steeped in a Tel Aviv culture that brings with it its own mindset and politics To effect real change, we need to alter the landscape itself Aside from giving it lip service, does Israeli society truly want integration? Is the business sector ready for Haredi professionals to become C-level executives, managers, and policy influencers? If the answer is no, then we need to ask ourselves why… Why are we content with Haredi employees occupying low-level roles, but not decision-making positions? To catalyze progress, we need outside investors who understand the need for change, who are willing to provide the financial backing necessary to make this vision a reality. This cannot be left to the same players who have dominated the scene so far. They are too dependent on the status quo, and too concerned with their own well-being… Let's work to make Haredi society an integral part of the tech ecosystem at all levels If you’re interested in joining us in reshaping the tech ecosystem, reach out to me directly to learn more! #startupnation #venturecapital #thoughtleadership

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This episode with Yotam Segev CEO Cyera is 🔥🔥🔥 A quick highlight of the many topics we discussed Link to the full episode in the comments.

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2023 was a tough year for Israeli startups. After a few slow quarters, the Israeli startup ecosystem is starting to show signs of recovery and stability. According to the latest tech review for Q1 2024 (by LeumiTech and IVC Data and Insights): - Israeli startups raised $1.74 billion in Q1 2024, just 1% below Q1 2023 - Q1 2024 had more seed rounds than each of the 3 previous quarters in 2023 - Cyber dominated in M&A and large rounds Link to the my post (and the report) in the first comment 👇

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#Israel's #investment landscape in Q1 2024 is growing compared to Q3. Despite the current challenges in Israel, #startups are proving again to be #resilient as they continue to raise money and grow. Israel's decrease in investments is in par with that of the US in 2023. Read more about Israel's investment landscape and about ICI Fund's portfolio companies in ICI Fund's May newsletter: https://lnkd.in/dBnXWYcK #Startupnation will always stay #resilient, #nomatterwhat.

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ICI Fund was ranked among the Most Active Foreign VC Funds investing in Israel! 🎉🍾 ICI Fund strongly believes in the #Israeli #startup ecosystem and will continue to invest in incredible Israeli #entrepreneurs with #AI solutions that are #securing our #future. In 2024, ICI Fund invested in: 1. Feminai, led by Karny Ilan, MD, Shani Klein and Gal Yanuka; 2. Rangers.ai, led by Ayelet Biger-Levin; 3. Reborn Medical, led by Shir Kashi 4. UrbanMix, led by Sharon Yavo Ayalon and Daphna Levine 5. Stay tuned! In process 💪 ICI Fund is planning to invest in at least two additional companies by the end of 2024. We focus on #preseed stage #investments. If your vision includes transforming a critical industry, securing our future, and improving the world—and you possess the unwavering determination to make it happen—we'd love to connect with you. Let's meet! #BringThemHomeNOW!

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Change is at the heart of our business.   For 25 years, throughout innovation waves and economic cycles, Viola Ventures stayed committed to its vision of building global category leaders out of Israel.   In line with this, we continue to implement strategic plans to ensure continuity and adapt to the challenges and opportunities in the next 25 years.   Today we announce that Viola Ventures' next fund (the seventh) will be led by GPs Zvika Orron and Omry Ben David, together with Viola co-founder Shlomo Dovrat, who will continue as a General Partner in the seventh fund to complete the transition.   More on this at CTech by Calcalist piece below

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Tel-aviv has improved its position among the top startup ecosystems worldwide according to Startup Genome's 2024 report (https://lnkd.in/dN3aUa_h). What a powerful evidence of Israeli startup and innovation environment's resilience and the unshaken trust of the global investor community. The Israeli high-tech sector remains to be the engine of the nation’s economy, accounting for 18% of GDP, 48% of exports, and 11% of workforce. At Tachles VC we are proud we can back the next generation of cyber, cloud and infrastructure AI Israeli-born start-ups. Karel Tušek, Sivan Kanev, Boris Chovnik, Robin Bienfait

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Based on research at Stanford University… moving to the US could be a startups best move for some startups! 👇🏼 (note of caution: this may not be relevant to all startups, as it depends on several factors, including: “what” problem is being solved, “where” it’s being solved and “how” it’s delivered.) “…Relocation to the US significantly increases the chances for international #startups to become #unicorns, according to our #research…” “…numbers indicate that the US offers unique advantages for high-potential startups from around the globe…” Thanks for sharing Ilya Strebulaev (Stanford University Graduate School of Business) 🙏🏼

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Portfolio company #15 for ESH - happy to welcome Bagel AI 🥯 This one is really exciting on both the professional and the personal level. Having known Ohad for over two years, I've witnessed the transformation of Bagel from concept to a platform delivering real value to customer-facing teams, and the transformation of Ohad into a top-notch founder. The seamless alignment between customer needs, product features, and outbound teams like marketing, sales, and customer success is truly remarkable, and Ohad’s journey is a great model to learn from. Despite my Gluten-Free nutrition, I recognize the value of Bagel and see it as a game-changer for commercial teams, providing visibility into the revenue impact of every feature, module, and change request. It could be the next best thing since sliced GF bread! On a bittersweet note, Investment #15 marks the final ESH check. Raising ESH2 posed unexpected challenges (to say the least…) and there won’t be a fund 2 for ESH. I'm committed to continuing to work with the existing portfolio companies and founders on GTM, fundraising, strategy and more. Stay tuned for exciting portfolio updates in the coming weeks. As I start this transition, I'm open to new ideas and collaborations. If you have suggestions on potential partnerships or key connections, I'd love to hear from you. Remember, what goes around comes around - after all, life is also sort of a bagel…

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Interesting new report by Startup Nation Central on the Israeli tech ecosystem at war, one year on. Israeli startups raised $7.8 Billion since October 7. One point that got my attention is this survey answer from 230 companies and 49 VC investors on the level of confidence in the Israeli tech ecosystem's ability to deliver amidst challenging external circumstances. 72% of investors and 56% of companies are confident or very confident. That being said, 49% of Israeli tech companies reported investment cancelations due to the war and only 31% expressed confidence that they will be able to raise money next year. "Despite what you read in the news, Israel continues to draw investors seeking bold, determined solutions to global challenges. With attractive valuations and immense growth potential, the Israeli tech ecosystem remains resilient—no matter the circumstances." Link to the report in the first comment. 👇

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I was recently included in the list of the 1,000 most active angel investors in Israel https://lnkd.in/erPY8utD (I invest in Israel, the US, and Europe) The authors (Joey Faur and Oz Hassine from Flashpoint Venture Capital) gave some great tips on reaching out to angel investors. Since the article is in Hebrew, I am providing the translation below for your convenience. ''When crafting your pitch, keep the message short and focused, and make sure to include several key elements: 1. Opening: Briefly introduce yourself and your startup. 2. Value Proposition: Highlight what sets your startup apart and why it’s an excellent investment opportunity. 3. Achievements: Emphasize significant accomplishments, such as winning competitions or participating in accelerators. 4. Meeting Request: Clearly state your intention to discuss a potential investment. 5. Attachments: Include relevant materials, like an investor pitch deck, but avoid overloading with unnecessary information. 6. It's important to maintain conciseness—a message that’s too long won’t get read. When an angel investor shows interest, you need to be fully prepared for the meeting. Have a deep understanding of all the details related to your idea—financial data, forecasts, key performance indicators, competitors, and anticipated challenges. Your pitch should focus on the investor’s areas of interest and address potential questions even before the angel asks them. Even if you don’t secure an immediate investment, continue to nurture the relationship with the angel investor you met. Regular updates on your startup’s progress can keep the door open for future investment opportunities. Avoid Common Mistakes Now, let’s discuss two common mistakes you should avoid: 1. Failing to Do Research: Research investors before reaching out to prevent unnecessary misunderstandings. 2. Understanding Angel Risks: Acknowledge the risks angels face, such as dilution of equity and later-stage investments. Showing angels that you understand their perspective can increase their trust in your ability to make good use of their money.'' ---- Interested in investing in VCs & startups? let's connect.

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The Israeli high-tech sector is strong and will emerge even stronger after the crisis. Institutional investors in Israel must, however, invest more to help the industry. Over the past decade, the high-tech market has proven to be highly profitable, evidenced by numerous mergers and acquisitions. High-tech must be a significant component of investment portfolios. Our role is to revitalize the market. Without the support of institutional investors, it will be challenging to attract foreign investors. Yesterday, I was privileged to speak on the Alternative Investments panel moderated by Roee Bergman from Calcalist כלכליסט at the Future Investments 2024 conference by Calcalist and Migdal Group. I want to extend my gratitude to my fellow panelists: Keren Kalifa, CEO of G City Israel; Amir Hessel, Founding Partner of Arbel Fund; Dr. Navot Bar, CEO of Keystone Reit; and Mor Assia, Co-Founder and Partner at iAngels, for an inspiring discussion. #HighTech #Investment #Israel #InstitutionalInvestors #Innovation

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NEBIUS GROUP 60,000 GPUs CEO & Founder Arkady Volozh Nebius Group Team of "1,000+ top notch AI engineers" as Tom Blackwell write in his post, and "$2.5 billion in capital" as TechCrunch Paul S. highlight... this is like you read in my prev highlights "🏴‍☠️ 1200+ people globally, company Ai . Tech founder Div Turakhia 🇦🇪📈"... billionaire AI competition is kind of cool to watch! Of course your truly Chief Visionary Officer Aleksei Dolgikh 2025 Scout Venture Capitalists+Private Equity+Family Offices after seeing in #Linkedin: "Will we be the first publicly traded AI Cloud?" (c) Roman Chernin Co-founder, Growth at Nebius start to do some research for Crunch/??? (surprise in 🇺🇸🇺🇸🇺🇸) and of course because GITEX GLOBAL Largest Tech & Startup Show in the World x Expand North Star event where for 🇦🇪 crunch/DUBAI – Dubai's StartUPs and people W 🇸🇦 Crunch/RIYADH - Riyadh's StartUPs and People | #RiyadhTech #Vision2030 #RiyadhExpo2030 W 🇪🇬 Crunch/Cairo – the Media about Businesses and People W 🇧🇷 🇦🇷 Crunch/LATAM - CrunchLatAm.com StartUPs and People. and THIS IS ONLY THE BEGINNING there's 20+ more on the way Hyper Local New Media in the network of Glocal SEO Platform 2024 | EN.Gloc.al International Search Engine Optimization & SEO For Startups as you know :) Ok let's go from self PROMO to the team of exec and visionary in PDF and linkedin: Nebius post in LinkedIn that catches your truly attention: "A lot of our employees are going to be at #GITEXGLOBAL for tech creators, investors and enthusiasts... - CMO Anastasia Zemskova... - Ranvish Vir, our Growth Lead for the Middle East and APAC... - Andrey Gorbunov, Sales Enablement Lead... - Aleksey Golubitsky, GTM Lead... - biotech or healthcare Ilya Burkov CBDO - Dmitry Levner, Engagement Manager... - Sales Manager Leandro Salvador and Sales Executive Hasan Göktuğ Çolak... " Here’s a summarized version of the key ppl of Nebius Group: Ophir Nave - COO: Proven leader with expertise in legal and corporate finance, previously led Corporate M&A at Arnon, Tadmor-Levy. Ron Jacobs - CFO Andrey Korolenko - Chief Product & Infrastructure Officer: 20 years overseeing IT infrastructure, including top-20 supercomputers. Roman Chernin - CBO: 12 years developing B2B/B2C, experienced startup mentor. Tom Blackwell - CCO Business Unit CEOs: - Olga Megorskaya (Toloka): 10+ years in AI and Data Labeling. - Ilya Zalessky (TripleTen): 6+ years in edtech ventures GTM strategies. - Dmitry Polishchuk (Avride): 7+ years in self-driving tech, 13 years in mobile services. Board of Directors: - John Boynton Chairman, tech venture founder with 30+ years in IT. - Charles Ryan: Almaz Capital founder, former Deutsche Bank CCO. - Rogier Rijnja: Management consultant and former HR executive. - Arkady Volozh: CEO, visionary founder, co-founded Yandex and Comptek. - Esther Dyson: Wellville founder, investor. - Kira Radinsky: CEO of Diagnostic Robotics. - Elena Bunina: Head of Science & Education.

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The Israeli tech sector accounts for 20% of the country's economic output, and continues to attract #VC investment… despite the war, the Israeli tech train keeps moving. But... is it sustainable? From the outside looking in, many saw #Israel as the golden child over the past 10 years… but now, there’s doubt it’ll continue. Yes, cyber and AI continue to attract capital, including foreign money, but it comes at a cost. Many VCs are asking founders to move to the US quicker, hire more in the US vs. in Israel, and to do whatever it takes to lower the risk. Early-stage startups are finding it harder to secure investments, and the war has disrupted operational continuity for many companies. Yet, hard times create big companies, and the challenges Israeli founders are faced with today will pave the way for a new wave of successful companies in the future. Where do we go from here? Israeli founders have demonstrated extraordinary resilience, but the path forward is uncertain… 97212 Ventures PitchBook #startupnation #israelunderfire #venturecapital

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Founders’ Corner: The Power of Focus, Hiring for Hunger, and Tackling Problems Early Meet Israel Krush co-founder and CEO of Hyro, a digital health SaaS company R-Squared Ventures is proud to be an investor in. Hyro bridges gaps between patient expectations and workforce capacity with AI-powered digital assistants, automating tasks like appointment management and prescription refills. To date, Hyro has raised $50 million and partnered with some of the largest health networks in the US. I met with Israel in NYC recently and asked him to share insights from his journey as a founder. The power of focus. Reflecting on the early days, Israel shared, “We started by serving multiple industries. I wish we’d focused on one customer segment instead of trying to build a ‘holistic platform.’ By narrowing our focus, we could deeply understand one segment, reach product-market fit faster, and drive revenue growth.” Hiring for hunger. Israel prioritized “hungry” talent. “Especially early on, hunger beats experience. We’ve had people grow with Hyro all the way to C-level. It’s about finding agile, self-driven team members who can adapt and thrive.” Addressing small problems early. One key lesson: don’t ignore recurring issues, no matter how small. “If a problem keeps repeating itself, tackle it before it grows, because it will. This includes acting quickly on culture or skill misfits, and having tough conversations around product and GTM direction.” Advice for first-time founders. Connecting with founders who’ve faced similar challenges: “Seek advice from experienced founders who genuinely want to help, not those looking for financial gain. Their perspective can help you avoid pitfalls.” Choosing investment partners you connect with deeply. Israel stresses the importance of a personal connection: “Winning or losing is up to you and your team, but choose investors you’d want by your side during the lows. You need someone you trust for genuine feedback through tough times. That’s your right partner.” To Israel and the Hyro team, thankful to be part of your journey. Your determination, drive and execution are truly motivating. Glad you moved to NYC to tackle your market from within, and excited to see Hyro’s continued trajectory in transforming digital health! #foundertips #startup #vc #venturecapital #entrepreneur #founder

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