Weekly #FIRGUN Newsletter

Happy new year, and welcome to the first edition of #Firgun in 2024.

In case you're new here, "Firgun" (Hebrew: ??????/ pronounced 'feer-goon')?is an informal modern Hebrew term and concept in Israeli culture (originally Yiddish), which describes genuine, unselfish delight or pride in the accomplishment of the other person. It's the opposite of schadenfreude. More about Firgun and why it matters on VC Cafe: https://lnkd.in/dg2a86p

It's been 90 days since October 7th. At the time of publication, there are still 136 Israeli hostages captive in Gaza. This week, 3 people considered 'missing' since the attacks are believed to have been kidnapped. Kfir Bibas, the baby kidnapped with his four year old brother and mother, turned 1 in captivity. We must #bringthemhome NOW.

Reports summarising 2023 are starting to come out, painting a gloomy picture for Israeli startups. According to a new report by RISE Israel (formerly SNPI) 2023 brought a number of difficulties to Israeli high tech companies: global economic downturn, local political instability, and the repercussions of the Israel-Hamas war, which is still ongoing, although many reserve-duty soldiers are being discharged from the front line and expected to get back to work. It's not business as usual, but it's 'war-life balance', a new normal.

Based on preliminary numbers, Israeli startup investments were down 60% in 2023, reaching a total of $7.3 billion, the lowest amount since 2018. It's worth noting that US investments were also down 30% and European investments declined approximately 44%. Israeli seed investments declined 50% in 2023, which is particularly worrying, but there are a number of initiatives in place to support the funding needs of early stage startups including a $100M pledge from the government and various private sector emergency funds.

I hope 2024 brings better news, calmer times, and much desired peace to the people of Israel.

NEW FUNDING ROUNDS

• Congratulations Dror Davidoff and team Aqua Security on your $60M series E extension at a $1 billion valuation, to stop cloud native attacks!

EXITS

• Mazal tov Allon Mason and team UserWay.org on your $99M acquisition by Level Access to provide better accessibility tools with AI!
• Kol hakavod Yehuda M. and team Pomvom [ TASE: PMVM ] on the $125M SPAC merger with Izhar Shay 's Israel Acquisition Corp and Nasdaq debut!
• Kudos Ariel Shuper and team Atom Security (Acquired by Mend.io) on the acquisition by Mend.io for an undisclosed sum!

LINKS FOR YOUR BROWSER

• 18 years to VC Cafe - my labor of love turned 18 last week, and so much has changed since I got started...
• Nice 2023 AI timeline by PitchBook
• 英特尔 will invest $25 billion in Israel

MEDIA OF THE WEEK

?? The 2024 Israel funding map by Cardumen Capital (proud to have Remagine Ventures on the map!)

????The big pain points for Israeli startups in 2023, according to SNPI

?? Israel ranks #6 most technologically advanced country in the world

??♂?The 2023 US seed funding map by Carta

???? The 50 most visited AI tools in 2023

?? Not only startups struggled raising in 2023, also venture capital funds

?? And in the satire corner of the week...

?? Remember, it's all about perspective.

That's all for this week. Theres's a lot to celebrate in our "small" community! Keep on creating!

Eze Vidra

#Israel #startups #technology #venturecapital