Regular readers of VC Cafe are well aware of my passion for startup landscapes. This year is no different, and I’m excited to see what 2024 brings. Without a doubt, the only thing that is constant in the startup ecosystem is change!
This post will be updated regularly throughout the year with the new startup landscape maps. You can find the previous editions from Q3-Q4 2022, Q1-Q2 2022, July 2021, July 2020 and May 2019 as well as the 2023 annual landscape collection.
The 2024 Israeli startup funding ecosystem
Cardumen Capital have updated their landscape of Israeli startup capital – including the angels, both local and foreign venture investors active in Israel as well as CVCs, accelerators etc. Proud to have Remagine Ventures on the map ;-)
Israeli Space Tech
There are 105 startups are operating in Israel in the field of space applications as of February 2024. These startups have raised a total of $314 million in 2023, with many focusing on dual application technologies that solve challenges in the space market, but can also be utilised on Earth. The Israeli space startup landscape was created by The Earth & Beyond Ventures VC fund and Deloitte Israel and published in Calcaslist.
The Israeli Crypto and Web3 startup landscape
With the price of Bitcoin inching close to $70,000 and multiple ETFs launched, crypto investing in thawing again after the ‘second crypto’ winter.
Israeli crypto and Web3 fund Collider published its new landscape, noting that Israeli crypto startups raised over $100 million since October 7th, and that the first Decacorn (i.e. startup that generated $100M in revenue) is emerging.
Overall, the map lists 145 startups that have raised a total of $3 billion in funding across 16 categories- from infrastructure and security to DeFi and Compliance.
Contextual Fintech Landscape
Noam Inbar, partner at Viola Fintech introduced the “Contextual Fintech” landscape – and charted over 120 existing players in this domain including many Israeli startups.
There are some great examples of embedded finance, in which integrating a new product that introduces fresh functionality within an existing product while staying within the same framework or domain. But the holy grail to creating the ultimate experience is in the intersection of embedded, personalized, and on-time. Or, in a word – contextual.
Mapping the contextual fintech evolution, Calcalist
The Israeli Generative AI startup landscape
We (Remagine Ventures) published our 3rd version of the Israeli Generative AI startup landscape in Calcalist. Since we last mapped Israel’s generative AI landscape in September 2023 with 144 startups, the number of local companies in this space has nearly doubled. Our updated landscape now covers 27 categories, a significant expansion from 17 previously, featuring a total of 238 companies. As of April 2024, Israeli generative AI startups collectively raised $5.47 billion to date, with the largest round attributed to AI21 Labs, a $208M series C (out of a total $336M raised to date).
Israeli fintech startup landscape 2024
A report by Viola Ventures maps over 300 fintech startups active in Israel. It positions Israeli fintech in a solid second spot for attracting funding (18% of total funding), following cybersecurity(at 26% of total funding). Despite global downturns, Israeli public FinTech companies have shown strong revenue growth of 22% and maintained solid gross margins of 71%. Israeli FinTechs are prioritizing buyside acquisitions over exits, with six notable acquisitions ranging from $40 million to $610 million in 2023. Early-stage funding reached $466 million in 2023, and growth-stage funding totaled $434 million.
Energy Tech
Israel’s energy tech sector boasts over 160 companies, with 54 funding rounds totaling $403 million in the past year. The sector, detailed in a new landscape map by Startup Nation Central, Ignite the Spark, and the Israel Export Institute, includes eight key categories such as renewable energy, energy storage, and hydrogen technologies. The majority of these companies are in early-stage growth phases, with significant innovation and investment driving the industry’s development. This highlights Israel’s role in advancing sustainable energy solutions globally.
Martime technology
The Dock Innovation hub for martime tech published its updated version of H1 2024 Israeli maritime tech startup landscape, including over 100 startups – up from 37 startups in 2018.
Defence tech
In July 2024 Calcalist published a new landscape map from Startup Nation Central, a non-profit organization promoting Israeli innovation globally, Israel’s defence technology industry is home to more than 160 companies. These firms specialize in addressing crucial issues across various sectors, including:
- Air defence
- Homeland security
- Aviation
- Dual-use technologies
- Space technologies
- Other related fields
This diverse array of companies showcases the breadth and depth of Israel’s defence tech ecosystem.
Web3
The Israel web3 ecosystem includes over 100 startups across 12 distinct sectors, which have already attracted $4.5 billion in funding to date. The companies range from blockchain infrastructure and cybersecurity to real-world assets and decentralised finance (DeFi). There are already a number of Israeli web3 unicorns, including Fireblocks, StarkWare, and eToro. More in this web3 landscape by Entree Capital’s Tomer Niv originally published on Forbes.
Israel’s AI market landscape
A report of Israel’s AI ecosystem by F2 Venture Capital, Google Cloud and Deloitte published in November 2024. The Israeli AI startup ecosystem is booming, with over 2,150 active AI companies, representing ~30% of the local tech sector. Link to report. The majority of Israeli companies operate in the vertical AI space and infrastructure/tooling, although there are several foundation models and hardware startups. As I covered on VC Cafe, the report highlights the verticals where Israeli startups can make an impact.
I'm a former general partner at google ventures, head of Google for Entrepreneurs in Europe and founding head of Campus London, Google's first physical hub for startups.
I'm also the founder of Techbikers, a non-profit bringing together the startup ecosystem on cycling challenges in support of Room to Read. Since inception in 2012 we've built 11 schools and 50 libraries in the developing world.
- Breaking the mold: Pattern Breakers book review - November 18, 2024
- Weekly Firgun Newsletter – November 15 2024 - November 15, 2024
- Kindling Early B2C Growth: Getting to 1,000 Users - November 11, 2024
