What We Learned From 1,069 Startups? | Novacy's Exit | DigitalOwl & Hoopo's Hyper-Growth

Lessons from 1,069 Startups We Didn’t Invest In

In a thought-provoking blog post, Fusion’s Associate Amit Shechter shared insights from the 1,069 startups we met in 2024 but didn’t invest in. While we celebrated 22 new pre-seed investments, we also delved into what these teams are building, how much they’ve raised, and why we ultimately said “no.”

Key findings include:

?

• AI: Core vs. Wrapped Nearly 16% (120) of startups we met in 2024 claimed to be "AI-focused," but only 12 were building deep-tech AI solutions in complex areas like data, infrastructure, cloud, or hardware. The majority relied on "AI-wrapped" products, often driven more by marketing than true technological innovation.
• Revenue ≠ Validation More bootstrapped startups are generating initial revenues, but many face high churn rates or depend on non-ICP customers, often limited to blue-white (IL) logos. These early revenues rarely indicate readiness to scale in larger markets, especially the U.S.
• Not All Journeys Are Equal Most founders aren’t 81/8200 alumni raising millions on a presentation. Many face tougher paths, needing to secure multiple pre-seed sub-rounds for 6–18 months of runway before reaching the seed stage—a challenging, but rewarding, journey.

Read the full blog post here: What We Learned From 1,069 Startups.

We’re thrilled to kick off the year with the successful exit of our portfolio company, Novacy, by Lusha!

Novacy, founded by Or Biderman, Uria Franko, and Yair Giwnewer, developed a cutting-edge platform for sales conversation analysis. Fusion was proud to be Novacy’s first investor back in 2022 as part of our 10th Batch.?Lusha’s acquisition marks an exciting expansion of their capabilities, enabling them to offer tools for optimizing sales conversations alongside lead generation.

Congratulations to the Novacy team on this milestone!

Read more on Calcalist: Lusha Acquires Novacy.

Upcoming Event: Rethink CX with Fusion, Quack AI & Google for Startups

Join us for an exclusive event dedicated to AI and the Future of Customer Experience, hosted in partnership with Quack AI and Google for Startups.

When: Wednesday, February 12, 9:00 AM – 1:00 PM Where: Google for Startups Campus, Tel Aviv Keynote Speaker: Natalie Margolin, VP Customer Experience at Monday.com Panel Discussion: Featuring CX leaders from Fiverr, Elementor, and Guesty

Don’t miss this opportunity to explore how AI is transforming customer experience. RSVP here: Event Registration.

Finding the Next Unicorn

Discover how to identify and invest in the next billion-dollar company at our live panel event, Finding the Next Unicorn, in collaboration with Pearl Cohen and Or Azulay.

When: Wednesday, February 26, 9:00 AM – 11:00 AM Where: Pearl Cohen Offices, Tel Aviv Panelists:

• Shahar Tzafrir, TLV Partners
• Ohad Gliksman, 5Eyes
• Renana Ashkenazi, Grove Ventures
• Nofar Amikam, Glilot Capital Partners

Moderated by Guy Lachmann (Pearl Cohen), this event is perfect for founders, investors, and tech professionals seeking insights on early-stage investments.

RSVP here:?Event Registration.

Growth Stories: DigitalOwl & Hoopo

Our portfolio companies continue to lead the way in innovation:

• DigitalOwl: Achieved an 80% reduction in medical record review time with their new Case Notes product and expanded partnerships with industry leaders like RGA and Nationwide. They were also named a Top 50 Most Promising Insurtech Company by CB Insights.
• Hoopo: Partnered with ZIM to globally roll out smart containers equipped with hoopoSense Solar trackers, offering over 12 years of battery life and advanced cargo security features.

These milestones reflect the incredible progress and impact of our portfolio companies.

Both companies experienced triple-digit revenue growth during 2024 and are expected to see similar growth in the coming year.

Thank you for being part of Fusion’s journey. Stay tuned for more updates, insights, and events. Together, let’s make 2025 a year of innovation and success.

The Fusion Team