Despite the ongoing war, 2024 proved to be a pivotal year for Israeli startups and the global tech ecosystem as a whole. 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, 2024 was a year when many portfolio companies achieved key growth milestones, secured follow-on funding and expanded their market leadership. We also welcomed a host of new startups into the portfolio, focusing on untapped markets where deep domain expertise and AI intersect to drive real impact.
Looking ahead to 2025, we see significant opportunities on the horizon as the IPO window reopens and enterprise AI adoption goes mainstream. At F2, we will stay focused on partnering with founders who prioritize substance to deliver tangible ROI.
To our founders, partners, co-investors and friends in the ecosystem — thank you for your trust, collaboration and steadfast support.
Investment Activity
At F2, 2024 was a very active year. We deployed capital at the earliest stages as well as in strategic growth rounds led by top global funds. In total, we made 23 investments across pre-seed, seed and growth stages with inception checks ranging from $100K to $5.5M. In terms of later stages, we followed on from Series A to Series C stage in portfolio companies that are on track to win in their respective markets.
In terms of sectors, we doubled down on our investment thesis, continuing to focus on Applied AI and B2B software across a range of industries, including Cybersecurity, Insurtech, Fintech, Enterprise AI, Gaming, Scientific Research and DevOps. These sectors reflect the breadth of opportunities where AI is driving transformation and where Israeli founders, based in Israel and the US, are building solutions that challenge the status quo.
Through our Operator Platform, we continued to write our earliest checks and partnered closely with founders, providing the guidance, support and resources they need to bring their vision to market with greater clarity and confidence.
Portfolio Achievements
Our portfolio companies continued to demonstrate significant growth and market recognition in 2024:
- 4 of our portfolio companies (Faye, Darrow, Astrix, Zero) were named to Calcalist’s Top 50 Most Promising Startups, with Faye claiming the #1 position.
- This year saw several strategic growth rounds across our portfolio, including Faye’s $31M Series B led by Portage, Astrix’s $45M Series B led by Menlo Ventures, and Justt’s $30M Series C led by Zeev Ventures—all with support from F2’s opportunity fund.
- Regulus continued to lead the pack among Israel’s top defense startups, driving innovation and setting the standard for battle-tested and robust, counter-drone systems.
- Zero Networks, recognized by Fortune Magazine in its ‘Cyber 60’ list, grew revenue by 200% year over year and bolstered its leadership team with strategic hires.
- Voom secured a spot on INC. 5000’s list of America’s fastest-growing private companies, reflecting its strong growth trajectory in mobility insurance.
- Darrow earned recognition on INC.’s Best in Business 2024 list, spotlighting its transformative impact on the litigation market in the US.
- Parametrix launched the world’s 1st cloud outage catastrophe bond in partnership with Hannover Re and gained attention for its analysis of the Crowdstrike outage’s financial impact.
- Dataloop closed strategic partnerships for its Gen AI development platform with leading names in the industry, including Nvidia, Google Cloud, Qualcomm and IBM.
Team & Platform Growth
- Expanded our team: Welcomed exceptional talent across investment, finance, and platform operations, bolstering our ability to deliver value.
- Revamped our digital presence: Launched a brand-new website that reflects our core values and reinforces our vision for the future.
- Released a groundbreaking report: Partnered with Google and Deloitte to publish the AI Israel Blueprint Report, showcasing Israel’s unique role in shaping the global AI ecosystem.
- Prioritized in-person engagement: Hosted strategic events across the East Coast, West Coast, and Tel Aviv, fostering meaningful connections among founders, operators, and partners.
Looking Ahead
As we enter 2025, we remain confident in Israel’s expanding role on the global AI stage, driven by:
- Applied AI solutions, where Israeli entrepreneurs are harnessing deep domain expertise to address complex, industry-specific challenges and create transformative applications.
- AI infrastructure, building on Israel’s long-standing leadership in R&D and leveraging its dense engineering talent to develop the infrastructure and tools powering AI adoption at scale.
- Emerging and untapped markets, where startups are uniquely positioned to outpace incumbents by using AI to create agile, innovative solutions that redefine industries.
We are at the early stages of a profound technological shift. As we reflect on 2024, we are inspired by the resilience and innovation of the Israeli technology ecosystem and are incredibly excited for our portfolio companies and founders in the pivotal year ahead.
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