Message From The Team
Happy Holidays from all of us at F2!
2024 was a pivotal year for Israeli tech and global innovation. It’s the year AI went mainstream and Nvidia (briefly) overtook Apple as the world’s most valuable company with a market cap now standing at $3.4 trillion. Remarkably, Israel recorded the highest total value of exits over the past decade this year; a data point that truly reflects the resilience and strength of Israeli tech ecosystem. At F2, we made 23 investments, deploying capital at the earliest stages as well as in strategic growth rounds led by top global funds in our fastest growing companies. We stand at the beginning of a profound technological shift and are incredibly excited for our portfolio companies and founders to make their mark.
For more insight, check out our 2024 recap and insights for 2025.
Sector Spotlight
AI’s explosive growth has relied on vast amounts of Internet data, but researchers warn that this resource may soon run dry. A recent study predicts that by 2028, publicly available text will no longer meet the demands of training large language models like ChatGPT. This looming shortage, combined with increasing restrictions from content providers and copyright challenges, is forcing developers to rethink how they scale AI systems. The data crunch could force an upheaval in the types of generative AI models that people build, possibly shifting the landscape away from big, all-purpose LLMs to smaller, more specialized models.
Portfolio Companies
- Zero Networks accelerated company growth with three key executive hires.
- Astrix Security announced their $45M Series B round led by Menlo Ventures.
- Justt announced its $30M Series C round led by Zeev Ventures.
- Darrow and QuantHealth make Inc. Magazine's Best in Business 2024 list.
- F2 participated in a Series A round to scale AI infrastructure for the gaming industry in one of our existing portfolio companies (stealth).
What We're Reading
The Next Identity Crisis Is Non-Human; Thesis on Astrix | Menlo Ventures
Michael Dell Spent 40 Years Preparing for an AI Boom No One Expected | WSJ
Ukraine Collects Vast War Data Trove to Train AI Models | Reuters
Hebrew University Offers Free First-Year Tuition for Female Computer Science and Math Students | Times of Israel
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