14 emerging Israeli startups to watch, according to VCs

In Europe, only the UK, Germany and France have taken in more VC money than Israel this year.

Investors wrote checks worth €7 billion for Israeli startups in 2021 – a record figure, surpassing last year’s total by nearly €3 billion. The country has also hit nine unicorns this year, seven of which are SaaS companies.

But with more hefty fundraising rounds propelling Israel’s startups into the big time than ever before, which newcomers are worth keeping an eye on?

To find out, Sifted spoke to four of the top VCs in the country. The only rule: the startups they nominate cannot be part of their portfolio.

Yaniv Golan, General Partner at Loolo

Lool is an early stage VC firm based in Tel Aviv. Golan’s portfolio includes beekeeping startup Beewise and no-code SaaS Lightico.

Diagnostic robotics

The startup applies the most advanced technologies in the field of artificial intelligence to make healthcare better, cheaper and more widely available. The past 18 months have seen an accelerated digital transformation in the healthcare sector, catalyzed by Covid-19, and we expect to learn more about how this impressive team has played a key role in the coming months.

Grown up: € 23.5 million

Founded: 2017

Last round: early VC

Empathy

Empathy is a digital companion to help families manage their affairs after a death. The company was founded by serial entrepreneurs Ron Gura and Yonaton Bergman – both of whom have experience with scale-ups and have spent time in senior executive roles at WeWork, eBay and PayPal.

Grown up: € 39.1 million

Founded: 2020

Last round: Serie A

Sorbet

Sherbet helps companies deal with the significant financial risk of employees’ accumulated paid time off – approximately $224 billion a year in unused vacation days. We love Sorbet’s consumer-centric approach and brand combined with an innovative fintech solution to help CFOs sleep better at night.

Grown up: €19.1 million

Founded: 2019

Last round: Seed

Fabric (formerly CommonSense Robotics)

Fabric’s mission is to help all retailers profitably offer on-demand e-commerce so that customers can get a two-hour delivery at any retailer. Behind this is a complex hardware, robotics, software and real estate driven business model with a business sales cycle. A dangerous cocktail that most founders wouldn’t touch. We love Fabric because it typifies the level of ambition we see in a new breed of mission-driven Israeli founder. With existing partnerships with major retailers (including Walmart) and a growing number of proprietary micro-fulfillment centers in the US, we believe Fabric is well positioned for hypergrowth and mega-funding rounds to fuel it.

Grown up: € 124m

Founded: 2015

Last round: Series B

Grounding

Organizations generate huge amounts of data, which they need to analyze regularly and execute in near real time. Varada enables large and complex datasets to optimally serve analytical users and apps by automatically making them operational extremely quickly and immediately. This team’s unique approach to being in the data lake of the organization gives Varada a huge advantage and I expect that we will all learn more about the speed of this company in the coming months.

Grown up: €20m

Founded: 2015

Round: Serie A

Talia Rafaeli, partner at Compass

Kompas is an early stage VC headquartered in Copenhagen. Rafaeli is based in Israel and has just launched Compass’s first fund. It has made one investment so far, US-based smart window startup Tynt.

Talia Rafaeli, partner at Compass

TrackerDetect

This cybersecurity company is introducing an innovative approach for organizations to perform their risk management at the level of all their business applications. Their unique solution brings a new level of application activity analysis, much more accurate and comprehensive. Eliminates the need to learn application business logic and write specific application rules, while minimizing exposure to and damage to internal and external fraud activities, helping organizations mitigate risk.

win

Wint provides water intelligence solutions with the aim of enabling companies to effectively manage their water, so they can reduce consumption, eliminate waste, prevent damage from water leakage and reduce their carbon footprint. In an era where companies are gradually looking for efficiency and carbon neutrality, a solution that promotes conservation is becoming increasingly interesting.

Founded: 2011

fixefy

Fixefy aims to solve the growing complexity of logistics at scale by creating a unified data source for supply chain billing. Fixefy combines machine learning with hard-earned industry experience to ensure the integrity of transparent supply chain relationships. The company aims to become the platform for logistics narrative integrity, supply chain optimization and buyer-seller collaboration.

Founded: 2018

QDM technology

QDM has developed a new generation of commercial superconductors capable of 10x power transmission and 100x storage capacity. This technology translates into billions of dollars in savings and lower green gas emissions, because less additional capacity is needed to absorb the transport losses. QDM’s cost-effective superconducting wires will also enable sustainable energy solutions such as fusion reactors, solar fields and wind farms.

Aaron Rosenson, Equal Partner at Aleph

Aleph is an early stage VC fund based in Tel Aviv. Rosenson’s portfolio includes delivery logistics platform Bringg, data SaaS startup Coralogix, analytics firm Placer and workforce software platform Centrical.

Aaron Rosenson, Equal Partner at Aleph

Pecan

Pecan’s AI-powered predictive analytics platform puts machine learning in the hands of everyday, non-technical users such as analysts and business stakeholders to provide meaningful insights that solve their most difficult and important problems, without the need for coding or data preparation.

Grown up: €41.8 million

Founded: 2016

Last round: Series B

Connect team

Connecteam provides key building blocks for software solutions that most businesses around the world need to efficiently manage their workforce from one place. From small businesses to large enterprises and corporations, there is a huge global market for simple, mobile-first software to manage operations and communications with deskless employees.

Grown up: € 33.6m

Founded: 2013

Round: Series B

Exploration

Explorium is a data science platform to quickly access, find and understand important data, extract and aggregate relevant information to create predictive models. Explorium enables confident decision making.

Grown up: €128 million

Founded: 2017

Round: Series C

Nate Jaret, Director at Maniv Mobility

Maniv Mobility is a VC company with a focus on transportation technology. Jaret’s portfolio includes B2B SaaS 2trde, mobility startup Fenix, and online grocery company Spider.ai.

Headshot of Nate Jaret, Director at Maniv Mobility

Urban

Municipal data is sparse, inherently messy, and rarely used. Several startups are trying to help municipalities understand this, but Urbanico’s creative business model helps break the urban data problem and bridge the gap between private and public sector urban data requirements.

Founded: 2019

Last round: Seed

Pretty damn fast

Pretty Damn Quick (PDQ) is the result of a founder solving the challenges he faced as the owner of a small business brewing and selling craft beer. Many small businesses today are struggling to get into the ecommerce game because of the difficulties in managing shipping and logistics flows. PDQ has created a platform that offers flexible and powerful e-commerce logistics capabilities, despite being completely self-service. PDQ will help more and more small businesses, the backbone of our economies, to compete more vigorously with the rhinoceroses.

Kai Nicol-Schwarz is a reporter at Sifted. He covers health technology and community journalism and tweets from @NicolSchwarzK

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