AI

Accessing AI Investment: 6 Key Insights

AI

December 12, 2024

AI is transforming industries across the globe, creating unprecedented opportunities for startups to innovate, scale, and attract high-value investments. From revolutionizing healthcare and agriculture to optimizing infrastructure and cybersecurity, AI investment potential is vast. However, alongside these opportunities come significant challenges: scalability, trust, regulatory compliance, and fierce global competition. For Israeli startups, navigating this dynamic landscape requires strategic focus, resilience, and the right partnerships. To get all the recent data, access our recent AI report on Finder. A recent AI Investment Panel, held at our offices in Tel Aviv, explored these opportunities and challenges, offering actionable insights for startups developing AI technologies. The event brought together industry leaders to share their expertise and discuss how startups can leverage Israel’s unique ecosystem to succeed on a global stage. 

Innovation in Motion and Startup Focus Day

The AI Investment Panel was part of our Startup Focus Day, a signature event within the broader Innovation in Motion event series by Startup Nation Central. Innovation in Motion highlights Israel’s position as a global innovation leader by connecting startups, corporates, investors, and thought leaders to foster collaboration, showcase transformative technologies, and address pressing global challenges. 

Startup Focus Day provided Israeli startups with unmatched exposure, mentorship, and partnership opportunities. It equipped participants with strategies to scale globally, connect with key stakeholders, and access new markets. Designed to bridge the gap between Israeli startups and global opportunities, the AI Investment Panel focused on creating tangible business outcomes for participants with a roadmap for navigating building a successful AI startup:  

  • Target high-impact sectors and uncover untapped opportunities. 
  • Build validated use cases that attract investors and customers. 
  • Forge strategic global partnerships with multinational corporations. 
  • Develop resilience strategies to thrive during crises. 

As global AI adoption accelerates, Israeli startups are navigating challenges such as scaling, trust, compliance, and accessing international markets. The panel explored the intersection of AI innovation and investment strategies, highlighting the unique strengths of the Israeli ecosystem and giving startups inside tips for success.  

Moderator and Speakers 

  • Arik Kol, Head of Inception Startup Program Israel at NVIDIA:
    A global leader in AI applications, Arik oversees a program that has supported over 1,000 startups. His deep experience in business development and engineering positions him as an expert on AI’s transformative potential.
     
  • Lilach Danewitz, Director of Strategy and Partnerships, NTT IL
    Representing a Fortune 100 Japanese conglomerate, Lilach focuses on integrating Israeli innovation into global operations, particularly in AI-driven solutions for healthcare and enterprise.
     
  • Shuly Galili, Founding Partner, UpWest
    With a focus on early-stage Israeli startups targeting U.S. markets, Shuly’s Silicon Valley-based fund has invested in notable successes such as SentinelOne and HoneyBook.
     
  • Janina Lax, Head of Early-Stage Startups, Google Israel
    Leading Google’s program for Israeli startups, Janina connects entrepreneurs with resources, mentorship, and grants, fostering innovation locally and globally.
     

As Sr. Director of Key Initiatives at Startup Nation Central, Michal Seror has a proven track record of fostering cross-sector collaborations that position Israel as a global leader in innovation. Her expertise in creating impactful partnerships made her an ideal moderator for this panel. 

Key Insights: AI Investment Roadmap for Success 

The AI & Investments Panel highlighted Israel’s unique position as a global leader in AI innovation. By leveraging its data-rich ecosystem, fostering agility and collaboration, and addressing scalability and trust challenges, Israeli startups can position themselves for success. Here’s how: 

  1. Leverage AI’s Cross-Industry Potential

AI is transforming industries far beyond its traditional strongholds of fintech and cybersecurity. NVIDIA’s investments in sectors like biotechnology, agriculture, and simulation technologies demonstrate how AI’s applications are growing rapidly. Startups that explore these untapped areas can find unique opportunities to solve pressing challenges, drive efficiency, and scale innovative solutions globally. By stepping into non-traditional domains, startups can differentiate themselves and capitalize on high-impact opportunities. 

“If 4 or 5 years ago, I told you NVIDIA made an investment in biotech or agri-tech, it would have sounded strange. But this year, we did just that—investing in SciTourism in Israel and a global agri-tech simulation company. AI is reaching every industry now, not just the ones you’d expect.” 

— Arik Kol, Head of Inception Startup Program Israel, NVIDIA 

  1. Focus on Use Cases and Early Validation

Building AI technology is only the first step—selling it is far more challenging. Early-stage startups must identify a precise and well-defined use case that addresses a real-world problem. By focusing on early validation and solving specific pain points, startups can better align with customer needs, reduce wasted effort, and accelerate their market entry. Investors and partners value startups that approach problems with clarity and demonstrate their solution’s tangible impact. 

“It’s much easier to build AI than to sell AI. Startups need to identify a very specific and clear use case from the start. Time is the most important thing for a startup, so don’t waste it trying too many things.” 

— Shuly Galili, Founding Partner, UpWest 

  1. Build Resilience Amid Crises

Startups must be prepared to navigate crises, whether they arise from geopolitical events, economic downturns, or other disruptions. Resilience is key to survival and growth. Google’s $4 million non-dilutive fund is an example of how partnerships can provide not just funding, but also operational and technical support during difficult times. Startups should align with organizations that value and enable resilience-building strategies. 

“During the war, we launched a $4 million non-dilutive fund. One example was a startup whose CEO was in reserve duty. We stepped in with technical and operational resources to ensure their work continued. It was about more than money—it was about making sure these startups could survive and thrive.” 

— Janina Lax, Head of Early-Stage Startups, Google Israel 

  1. Collaborate Globally and Strategically

Global corporations recognize the agility and innovation of Israeli startups, making them sought-after partners. Multinational companies like NTT value collaboration as a way to integrate cutting-edge solutions into their global operations. These partnerships can open doors to international markets, resources, and distribution networks, helping startups scale their technology and reach broader audiences. 

“In the last three years, we’ve partnered with over 20 startups and invested in 13. Startups like DID, which builds virtual avatars, and Bina AI in healthcare, are great examples of how Israeli innovation solves global challenges.” 

— Lilach Danewitz, Director of Strategy and Partnerships, NTT IL 

  1. Tackle Trust and Scalability Challenges in AI

As AI adoption grows, startups must address scalability and trust issues. Technologies must be optimized for efficiency and usability while adhering to ethical standards and building user trust. Companies like Desi, which NVIDIA acquired, highlight the importance of focusing on AI infrastructure to support scalability and robust performance in diverse use cases. 

“This year, we acquired Desi, a company optimizing AI solutions for infrastructure. It’s about making AI scalable and efficient—because that’s the challenge we see startups facing the most.” 

— Arik Kol, Head of Inception Startup Program Israel, NVIDIA 

  1. Take Advantage of Israel’s Unique Strengths

Israel’s access to 30 years of digitized healthcare data is unparalleled globally. This advantage positions the country as a leader in healthcare AI, enabling startups to build innovative solutions that rely on rich data sources. Leveraging Israel’s collaborative ecosystem and unique strengths in data-driven innovation can give startups a significant competitive edge. 

“Israel has a unique advantage with 30 years of digitized medical data. This kind of access is rare globally and gives Israeli startups a huge edge in developing AI solutions for healthcare.”

— Janina Lax, Head of Early-Stage Startups, Google Israel

Israel AI investment

The insights shared by the panelists provide a clear roadmap for startups to scale, innovate, and make a lasting global impact. To thrive in this dynamic space, startups must focus on real-world problems, align with strategic partners, and embrace resilience as a core strategy. The future of AI investment and innovation is bright, and Israeli startups are poised to lead the way.