The internet had a massive impact on the media industry, as the reporting of news became a commodity few are willing to pay for. The creation of content, but especially the sharing of content became a zero cost game. Initially, many publishers were slow to recognize the internet’s impact on their business model as distribution and the classifieds and ad worlds split – or what Ben Thompson calls the “Great Unbundling”. But in the coming age of generative AI, endless synthetic content and misinformation – there might be an opportunity for traditional media companies to regain their reputation as ..read more

Human attention spans are short, and some studies suggest they are getting shorter. The breakneck speed of AI advancement is one of those areas where the stream of information is so constant and so dense, that it’s very hard to process it all, let alone STAND OUT in the crowd. This creates a challenge, but also an opportunity for startups in the generative AI space. They need to think creatively and figure out how can they stand out in the crowd. Case in point: this week was Ycombinator’s W24 demo day. 70% of the startups in the current batch (170 out of 243) are AI companies. Techcrunch, who ..read more

It’s no secret that Israeli startups shoot above their weight. But now, a new report published by Dealroom (created in partnership with Tel Aviv Tech) shows that Tel Aviv is the world’s #1 most productive tech ecosystem in the world. A few staggering facts: Tel Aviv is responsible for 19% of all EMEA’s unicorns created since 2019, with less than 4% of the region’s funding. More Tel Aviv Seed-funded started reach unicorn status than any other hub in the world (4.8%) – more than the Bay Area (3.6%) or Boston (2.7%) in 2nd and third. Tel Aviv also creates more unicorns for every dollar of ventu ..read more

The battleground for consumer attention and engagement is fiercer than ever. Platforms traditionally known for streaming videos or facilitating professional networking are expanding their horizons into the gaming sector. This move underscores a strategic pivot towards creating more interactive and immersive experiences, aimed at capturing and retaining user attention in an increasingly fragmented digital landscape. First, it’s important to mention that gaming is not just popular amongst children. The latest NewZoo study on how different generations engage with gaming shows video games are the ..read more

Since I’ve started writing about Israeli startups in 2004, there has never been any event like October 7 and the war that followed. Now, 150 days after October 7th, the Israeli startup ecosystem is once again in a tough spot. In February 2024, Israeli startups raised $293 million in 16 deals, a 60% decline from the $731 million raised in the same period a year before. In the last 3 months of 2024, Israel’s GDP shrank by 20% in annualised terms and Israel’s credit rating was downgraded by Moodys. All of this is in addition to the macro challenges that Israeli startups had to deal with in 2023 e ..read more

Most startups equate the process of fundraising to dating – founders have to typically kiss a lot of frogs until the find the right fit. Investors are typically focused on stage, geo and in some cases sector, but there are always exceptions so it’s hard for startup founders to assess who might be interested to embark on their journey. In addition, founders thinking about starting a company can be overwhelmed by choice, as there are so many problems to tackle with technology, but it could be comforting to know that investors are interested in those areas in the first place. That’s why lists lik ..read more

A founder asked me what makes a $2M round “pre-seed”? especially if the startup already has a product and revenue? And why do we still sometimes hear about pre-seed rounds that look more like a series A in pricing and size? What’s the difference between an angel round and pre-seed round and why do I believe we’ll see more pre-seed rounds taking place in 2024? While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. Pre-seed rounds accounted for 14% of all seed stage deals in 2023, up from just 5% in 2020 according to Pitchbook data and ..read more

New products are launched everyday in tech. But it’s not everyday that Apple launches a new product, and the Apple Vision Pro is special even within that category. The biggest hardware launch by Apple since the iPhone was introduced in 2007, the Apple Vision Pro is a mixed reality headset and it’s about to send the world into a new era of spatial computing. It’s a new category all together: not a smartphone, not a VR headset and in many ways, not yet meant for the mass market. There are a lot of excellent reviews popping up on the Apple Vision Pro (some more critical than others). This is not ..read more

It’s easy to find bad news about venture capital these days. Take for example this Wired article, “The VC Funding Party is Over“. The glory days of VC are over, and if history is any guide, the tech bust should last through 2024 and beyond. In other words, the venture capital bust has only just started. Edward Chancellor, Wired Sounds gloomy, doesn’t it? In many ways, Edward is right. 2023 was a rough year for Venture Capital and for startups, and it might get even worse. That’s the case for most companies that are already in the market, especially if they raised funding at imaginary valuatio ..read more

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 ..read more