🧠 Food for thought

Implications, context, and why it matters.

Israel’s deep-tech momentum hides fewer new startups and smaller VC funds

• Israeli tech exits hit records, while deep-tech (companies built on scientific or engineering breakthroughs) raised over $28 billion from 2019 to 2025 1, yet problems remain that Viola’s fundraise does not solve.
• New company formation fell from over 1,000 a year a decade ago to 500 in 2024 1, while Israeli venture capital (VC) funds slid from $90 million average in 2017-2022 to $60-65 million in 2023-2025 1.
• High-tech output has stalled at 17% of gross domestic product (GDP) for two years, while research and development (R&D) roles fell 6.5% 1. That cooling comes despite raises, exits in AI and cybersecurity.

AI infrastructure and defense tech vendors can map about 20 Viola deals for Israeli co-investments

• Corporate venture arms (investment units of large companies) and tech vendors (software, hardware, or services providers) can use Viola’s focus. Targets include vertical AI, enterprise AI, and AI infrastructure with fintech in scope. Cyber, quantum, and defense round out the plan. That aligns with 342 Israeli generative AI startups that raised over $20 billion 2.
• After backing Redis and Pliops 3, partners in cloud infrastructure or cybersecurity can target 120 Israeli deep-tech companies with $100 million plus raises 1.
• Viola plans to roll out its seventh fund in the first half of 2026. Leaders in product or partnerships have time to build ties with seed and Series A startups before deployment begins. That can set up co-investment (joint investment alongside Viola) or commercial partnerships.