Fund ID

Name of fund/funds: Horizon Capital
Total sum of the fund: $50M
Partners: Yaniv Jacobi and Lior Segal 
Name of Participant:
Notable/select portfolio companies (active): Verbit, Datarails, Siteaware, Vee, Bites, Rep.ai
Notable exits: Own Company (FKA OwnBackup), Nanorep, Ondigo, Appoxee.

2024 is coming to an end. How would you summarize the year for the Israeli high-tech industry?

2024 was a transformative year for the global venture capital (VC) landscape. After the sharp downturn in 2022, the market began to stabilize, though challenges persisted. In Israel, the year presented a dual reality: ongoing difficulties stemming from regional instability and economic uncertainty, contrasted with extraordinary resilience demonstrated by Israeli entrepreneurs. Founders showed their ability to adapt and deliver under unprecedented conditions, reaffirming the strength of the local tech ecosystem. At Horizon Capital, this year reinforced our optimism, which we proudly shared with our investors. 

Looking ahead to 2025 – What challenges and opportunities await the Israeli high-tech sector in the coming year, and how are you, as investors, preparing for them?

The biggest challenge for Israeli startups lies in overcoming the lasting effects of the 2022 valuation bubble, which made many investors cautious after seeing limited returns. Despite this, 2025 holds significant promise for those who can endure. Founders who launched in 2023-24 and sustained their ventures have demonstrated exceptional strength and vision, and if they weren’t so visionary, we could call them crazy. Those resilient entrepreneurs have the potential to lead the next wave of innovation, and if the ecosystem is fully committed to them, they will thrive. 

How will new American leadership affect the global high-tech industry or economy? And where does this place Israel and its entrepreneurs?

With a focus on boosting private sector growth, the new U.S. administration could create opportunities for technology and innovation. We predict to see a pro-business government that could close the gap of the last few years. One of the most important things we always say to our portfolio companies is to remain relevant regardless of political changes. We expect that the Fed’s interest rate cuts will reignite IPO activity, inject fresh capital into the market, and boost momentum in the Israeli tech ecosystem.

(Without delving into political positions) What are the three most important things the Israeli government should do today to accelerate the high-tech engine in the coming year?

Education.
The Israeli government should prioritize education, particularly in STEM subjects, to ensure a steady pipeline of skilled talent for the future. This is the most important thing, and we are afraid that it will change. 

Second, they should provide targeted support to companies in regions affected by conflict (North and Otef Gaza), ensuring their ability to recover and grow.

Third, fostering an environment incentivizing entrepreneurship enables startups to scale locally rather than seeking opportunities abroad.

Are there new sectors you see as relevant? Are there any fields you anticipate will weaken significantly in the coming year?

AI will remain dominant, but its focus will shift from hype-driven applications like chatbots to transformative technologies addressing core industries. Sectors such as legal, construction, traditional manufacturing, and even finance are poised for disruption through automation and data-driven solutions by AI. These advancements will create lasting value and efficiency, and it’s a great opportunity for VCs to get into unserved areas. 

Is Israel missing out on the AI revolution in the global arms race? If not, what should the local industry focus on to join the global race?

While Israel wasn’t at the forefront of the AI revolution yet, its entrepreneurs possess unique qualities such as boldness, creativity, and perseverance that show that it’s never too late for Israeli founders to take over markets. The industry should focus on leveraging these strengths to build impactful, scalable AI solutions.

Could the global IPO drought end in the coming year?

We believe the IPO market is on the verge of recovery. Behind-the-scenes activity suggests growing momentum, and as conditions stabilize, companies with strong fundamentals will lead the charge back to public markets. 

From an investor’s perspective, will the coming year be better for early-stage startups or more mature companies?

Both stages offer unique opportunities in 2025. Early-stage startups will continue to attract attention due to their high growth potential, while mature companies that shifted over the last couple of years from focusing solely on top-line revenues to building healthier businesses, in terms of capital and operational efficiency, are also well-positioned to secure late-stage funding. 

Did you raise fund money in 2024 for an existing fund or a new one? What are your expectations regarding this matter for 2025?

We are gearing up for fundraising next year and are excited about the opportunities ahead. Stay tuned for updates.

How many investments did you make in 2024, and how does it compare to previous years?

In 2023, Horizon Capital was recognized as one of the most active investors in Israel relative to fund size, completing six pre-seed investments. In 2024, we led two rounds and participated in six follow-on investments, showcasing our commitment to nurturing innovation and growth.

For the full 2025 CTech VC Survey with Horizon Capital.