Arato, an Israel-based startup that tests AI systems through user simulations, has raised US$10 million in a seed funding round led by TLV Partners.

The round also included Jibe Ventures, Raghu Raghuram, a partner at Andreessen Horowitz and former CEO of VMware, and former Intuit CTO Marianna Tessel.

Founded in 2024 by CEO Shahar Erez, CTO Hilik Paz, and vice president of research and development Tal Salmona, Arato said its platform runs thousands of multi-turn simulated user interactions across text, voice, image, and business data interfaces.

The company said the platform identifies hallucinations, accuracy issues, tone problems, user experience drift, and security or compliance gaps.

Arato also said it can evaluate enterprise AI products through external interfaces without requiring code access or complex integration.

Erez and Paz previously founded freelancer management startup Stoke, which Fiverr acquired for US$95 million in 2021. Arato now has 23 employees, all based in Israel.

🔗 Source: Calcalist