Israeli AI Startups Community gain Momentum

22 October, 2017

Daniel Singer: “The number of startups in Israel using AI technology has nearly tripled in size since 2014: Almost 300 startups were founded between 2014 and today”

Artificial Intelligence

Over 1,600 developers, entrepreneurs and technologists jammed into Tel Aviv’s glass-walled Convention Center last week during NVIDIA’s GPU Technology Conference tour. “We’re here in Israel for the same reasons that a lot of international companies come to Israel — we’re looking for talent,” said NVIDIA founder and CEO Jensen Huang. “It’s now a new technology era, and it will be the largest of all,” he said in his keynote. “In previous waves, automation was the biggest force, and now this is era of the automation of automation. The potential of AI is so incredibly exciting, it’s fueling innovation all over the world.”

430 Israeli AI Startups

A new research published recently by the analyst Daniel Singer reveals a very vibrant Artificial Intelligent industry in Israel, that may answer many of Huang’s expectations. Singer wrote that he identified over 430 Israeli startups using AI technology as a core part of their offering. During the 2017 (partial numbers since we are still in 2017) Israeli AI startups have raised $837 million –  fifteen-fold increase in the last five years. “The number of startups using AI technology has nearly tripled in size since 2014, 95 new AI startups are founded each year in Israel. Almost 300 startups were founded between 2014 and today.”

The majority of startups are business-facing: 85% are classified as B2B, while 15% are B2C. A technology breakdown shows that 57% use machine learning techniques, 15% use deep learning techniques, 7% use natural language processing, 4% use computer vision. Many of them (more than half) have raised $500 thousand or less in total funding, and the average age is 2.8 years since founding.

Israeli AI Startups
List of Israeli AI Startups work on NVIDIA platforms

Singer writes that there has already been $1.0 billion in total exits. The average size of an AI exit deal is $72 million. “Based on the available data, Israeli AI startups are exiting at an average multiple of 8.2 times their total funding, ranging from a low of 2.0 to a high of 20.0 times. Half of the exits occurred in the last two years. Corporate giants like Apple, Microsoft and Google are actively competing to gobble up AI startups and attract the best talent.”

To contact Daniel Singer for more information: [email protected]

 

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