An Early-Stage VC

FKA Oryzn Capital

“When we founded Horizon Capital, we didn’t say, “Let’s build a VC fund.”
We were simply looking for a better way to support early-stage founders in Israel.
Back in 2012, there were almost no funds truly focused on the early days, and we wanted to be the kind of partner we wish we had.”

In the latest episode of the “Talking Entrepreneurship” podcast, Yaniv Jacobi, Managing Partner at Horizon Capital, share the story of how he built Horizon:
How do you even start a fund?
How do you reach LPs, craft an investment thesis, and raise money without a traditional background?
And how you made 20 investments and already made 5 exits.

And yes, he also spoke about what venture capital looks like in the age of AI.

Want to hear more from Horizon Capital?
Find it HERE

For early-stage founders, time is a non-renewable resource. At Horizon Capital, we understand the urgency of momentum, and we’ve designed our investment process to reflect that. While every company is different, our typical process from first meeting to signed term sheet takes between 6 to 8 weeks.

So what happens during those weeks, and what can you, as a founder, expect? Here’s a look behind the scenes of our due diligence (DD) process and how we partner with you throughout.

Phase 1: First Impressions and Fit

Our process begins with an intro call or meeting. We’re evaluating two things: your vision and your fit. We want to understand the problem you’re solving, your approach to product, market size, and the founding team’s unique insight or advantage.

Once there’s mutual interest, we move quickly to deeper conversations. This includes sharing a pitch deck, access to a demo or product walkthrough, and an overview of key metrics and business drivers. We’re not here to catch you off guard – we’re here to learn and align.

Phase 2: Deep Dive & Validation

If the fit looks strong, we enter a more structured diligence phase. This phase will take 2-3 meetings and typically includes:

Phase 3: Decision & Term Sheet

Once diligence is complete, we move quickly to internal discussions and decision-making. If there’s alignment, we’ll present a term sheet and move to legals. We work with experienced lawyers and make every effort to keep the process efficient and founder-friendly.

We’re transparent throughout – if we’re not moving forward, you’ll know quickly and respectfully. And if we are, we’ll keep you informed and supported through each step.

How Founders Can Prepare

You don’t need to have all the answers, but preparation helps:

Respecting Your Time

We know how valuable your time is, and we aim to make every conversation meaningful. We avoid dragging founders through endless meetings or unnecessary delays. If we’re excited, you’ll feel it. If we’re unsure, we’ll tell you.

Our goal is to get to a clear answer – fast.

If you’re looking for an early-stage VC that’s hands-on, transparent, and built for speed, Horizon Capital is here to support your journey.

Want to know more about us? Read our FAQs

After backing three music-tech startups in the past two years, we set out to take a closer look at where the category is headed. What we’re seeing is a market inflection point – driven by accelerating innovation, shifting creator behavior, and new monetization models.

The global music production and distribution market is already substantial, valued at $41.46B in 2024, and projected to more than double to $96.02B by 2034. Within this broader space, AI is becoming a dominant growth engine, reshaping the core of music creation and infrastructure.

The AI music market is projected to grow at a 25.8% CAGR from $3.9B in 2023 to $38.7B by 2033. Within that, generative AI in music segment is expected to jump from $2.92B in 2025 to $18.47B by 2034. On the tools side, music production software is also expanding rapidly, growing from $4.15B to $17.35B over the same period.

At Horizon Capital, we see a rare window of opportunity: the infrastructure of the music industry is being rebuilt in real time. The next category leaders will not just serve creators – they will become foundational platforms in a redefined value chain. We’re investing accordingly.

Why Now? The Forces Fueling Music-Tech’s Breakout Moment

A perfect storm of factors is accelerating innovation and investment in the music-tech landscape:

Game-Changing Trends Reshaping the Music Industry

Challenges & Opportunities in AI-Generated Music

As AI gains ground in music, it brings not just innovation but friction, challenging our definitions of art, authorship, and authenticity.

Consumer Acceptance

At first glance, the fact that 82% of people can’t tell whether a song was made by a human or a machine might suggest that AI-generated music is on its way to mainstream acceptance: If the music sounds just as good, why wouldn’t people embrace it? But that’s exactly the problem. 

The inability to distinguish human from machine doesn’t build trust; it creates doubt. Listeners feel uneasy when they don’t know who’s behind the music, whether artists gave permission, or if anyone’s being fairly credited. Only 10% actively support AI-generated music, while the majority opposes it. Nearly 90% demand clear labeling, showing a strong call for transparency. In the end, sounding human isn’t enough. If AI wants to earn the public’s trust, it’ll need more than good tech – it’ll need credibility.

Copyright & Creator Compensation

The core conflict in AI music centers on ownership and fairness. Major labels are suing AI music generators, and 76% of listeners believe artists’ music or vocals shouldn’t be used without permission. With projected losses of up to $10.5B for human creators by 2028, ethical, permission-based systems and fair compensation models are essential to ensure sustainable innovation.

Our Portfolio Stars: Building the Future of Music Tech Ethically & Effectively

In a rapidly evolving music landscape shaped by AI, the need for solutions that balance innovation with integrity has never been clearer. Our portfolio highlights companies leading this charge with both cutting-edge technology and ethical responsibility.

Aiode: Ethical AI Music Innovation

Aiode is reimagining what it means to create music with AI. Unlike companies that have sparked controversy by training models on artists without consent, Aiode puts musicians at the center – working hand-in-hand with them to co-develop proprietary AI models based on their unique playing styles and performance approaches. These expressive, high-quality tools allow music makers to collaborate with virtual versions of real artists in a digital production environment.

Every time a virtual musician is used, the real artist gets paid, whether or not the track is commercially released – opening a new revenue stream for creators worldwide. Aiode is committed to transparency, consent-based training, and responsible innovation, setting a new industry standard.

The Israeli startup has gained global recognition, winning a major music-tech competition in London and being selected for a mentorship program with Abbey Road REDD, Amazon Music, Red Bull Media, and Universal Music Group. Backed by a $5M seed round led by Horizon Capital, Aiode sets a new standard for responsible innovation in AI-generated music.

Learn more in our article, Meet The Startup: Aiode

Session42: Where Industry Expertise Meets AI Power

Co-founded by serial entrepreneur Oudi Antebi and veteran music executive Amit Shine, Session42 is reimagining the creative future of music. Their flagship product, HitCraft, is the world’s first conversation-based co-writing platform, built not as a replacement, but as a true creative partner. Grounded in authenticity and understanding-before-generating, HitCraft helps creators bring their vision to life, from spark to professional demos, all while preserving full ownership and creative control.

Complementing this is Dstro, a modern distribution platform designed to give artists transparent, streamlined control over how their music reaches the world. For fans, Session42 is building personalized, social listening experiences that connect communities through discovery and story-driven engagement.

Backed by an $8M seed round led by Horizon Capital, Session42 is building a future where artists have full creative control across creation, distribution, and connection.

Learn more in our article, Meet The Startup: Session42

Looking Ahead: Betting on the Backbone of a New Music Era

AI is no longer an add-on in music, it’s becoming the operating system. With 70% of producers expecting AI to have a “large” or “massive” impact on music production in the future, we’re entering a new era where intelligence, infrastructure, and integrity must go hand in hand. But the biggest opportunities aren’t just in the tools artists use – they’re in the invisible layers that power them.

At Horizon Capital, we’re focused on what turns disruption into durability. That means investing in the infrastructure that secures rights, streamlines monetization, and scales ethically. It means supporting platforms that democratize creation without compromising compensation. And it means backing founders who believe that technology should empower artists, not replace them.

The future of Music Tech won’t be defined by louder algorithms but by companies that build trust, unlock creativity at scale, and shape how culture is created and consumed. The sound of opportunity isn’t just loud. It’s undeniable.

Read more from Horizon Here

Over the past year, Horizon Capital executed seven follow-on investments aimed at ensuring the resilience and growth of Israeli innovation.
Lior Segal, Founding Partner at Horizon Capital: “Our focus on strengthening our existing portfolio gave our companies a stable anchor during a turbulent time.”

As we celebrate Israel’s Independence Day, we’re also celebrating the strength and resilience of its high-tech sector. According to the Israel Innovation Authority, the tech industry contributed approximately 19.7% of Israel’s GDP in the past year and employed around 391,000 people. But this was no ordinary year. Against a backdrop of geopolitical instability and volatile global markets, Israeli venture capital firms faced a strategic crossroads: continue sourcing new deals or double down on the companies already in their portfolio.

“At Horizon Capital, we chose the latter,” says Lior Segal, Co-Founder and Managing Partner. “Over the past year, we made seven follow-on investments across our portfolio. In times of uncertainty, extending the runway for strong, early-stage companies is critical. Our focus was to help our founders navigate the storm, adapt with agility, and emerge stronger on the other side.”

This approach wasn’t just about risk management – it was about responsibility. Startups in Israel are more than financial assets; they are engines of innovation, job creation, and economic stability.

“Since last Independence Day, we’ve witnessed continued geopolitical tension and global economic disruption, exacerbated by new tariffs and shifting market dynamics,” Segal explains. “By strengthening our portfolio from within, we gave our companies the stability they needed to keep moving, sometimes incrementally, sometimes in leaps – toward their strategic goals.”

Looking ahead, as the tech ecosystem cautiously navigates an uncertain global landscape, Israeli VCs are leading a critical movement: building internal resilience, enabling sustainable growth, and safeguarding the future of Israeli innovation. And yes, new investments haven’t stopped. Innovation never does.

This article was published on ICE on Israel’s 75th Independence Day.

Read more from Horizon Capital Here

In this episode, Lior Segal and Yaniv Jacobi, co-founders of Horizon Capital, join Ram Amadi on the podcast “Mabat L’ahor” to share the story of building a VC firm like a startup and how they support founders beyond investment. They discuss how AI is reshaping the startup landscape and what fields they would encourage their children to study at university today.

Tune in for an honest conversation about entrepreneurship, innovation, and the future of tech.

Find More Podcasts Here

I once had a conversation with a frustrated SaaS B2B founder. Despite all the effort they put into outreach and marketing, their product just wasn’t gaining traction. The issue wasn’t the product; it was that they didn’t have a clear idea of who they were selling to. They were trying to market to anyone and everyone who could use their solution. The truth? That kind of broad targeting rarely works.

So, what’s the solution? It’s simple – you need to build a Buyer Persona.

Before we dive in, let’s clarify the difference between a Buyer Persona and an Ideal Customer Profile (ICP), two terms that often get mixed up.

For example, your ICP might say you’re targeting “mid-sized tech companies in North America,” but your Buyer Persona might be “Sarah, the VP of Marketing at a tech company, who’s dealing with tight deadlines and high expectations for ROI on marketing campaigns.”

So, why does this matter for your marketing strategy? Here’s the key: even in a B2B context, the decision to buy is ultimately made by an individual. The person who’s in charge of selecting and purchasing your product has specific pain points, desires, and motivations that are different from the company as a whole. Understanding Sarah’s challenges and goals (in this case, increasing marketing efficiency while managing a tight budget) will help you craft messaging that resonates with her directly.

Now, let’s talk about how this shapes your marketing strategy.

How a Buyer Persona Shapes Your Marketing Approach

When you define your Buyer Persona, you can tailor your marketing strategy to speak directly to that individual, using language, content, and platforms that appeal to them. The days of one-size-fits-all marketing are over. Instead of broad campaigns that target companies or vague segments, you can create personalized, targeted content that speaks to the specific needs and interests of your persona.

Content Marketing and Messaging

Once you have your Buyer Persona, your content strategy becomes much clearer. You can now produce content that speaks directly to their pain points and goals. For example:

Social Media and Ad Campaigns

When you know exactly who your Buyer Persona is, you can more effectively choose where to promote your content and what messaging to use. For instance:

Where to Find Your Buyer Persona

Knowing where to reach your Buyer Persona is just as important as knowing what content to create. If your persona spends their time reading industry blogs, engaging on LinkedIn, and attending specific webinars, those are the places where you should invest your marketing efforts.

By understanding the behaviors, habits, and platforms your persona uses, you can create a much more effective strategy for both organic and paid campaigns.

Buyer Persona = Personalized Marketing!

At the end of the day, the success of your marketing strategy depends on how well you understand the people behind the businesses. Even in a B2B setting, your product is being bought by humans who have specific needs, fears, and motivations. When you take the time to create and refine your Buyer Persona, you’re able to craft messages, content, and campaigns that speak to those individuals in a way that resonates.

So, if you’re ready to get started and want a framework to build your own Buyer Persona, download our free template now and get to know your buyers better! It will be your first step toward better targeting, more effective messaging, and ultimately, more sales.

Good Luck!

At Horizon Capital, giving back isn’t a side note – it’s part of who we are.

Over the years, we’ve celebrated exits, raised follow-on rounds, and supported dozens of visionary founders. But what fills us with the most pride is how we’ve channeled part of our success back into the community.

We believe that talent is everywhere, but opportunity isn’t. That’s why we’ve invested time and resources into supporting tech education in Israel’s geographic and socioeconomic periphery. Through our partnership with Keshet, and in collaboration with Atidim and Aluma Youngs, we’ve helped engineering students access scholarships, career opportunities, and networks that once felt out of reach.

We see this work not just as a foundation but as infrastructure building. We help lay the groundwork for a more inclusive and innovative ecosystem by empowering underrepresented communities to enter the tech world. It’s about expanding the pipeline, unlocking potential, and ensuring that the next generation of entrepreneurs represents the full diversity of our society.

Philanthropy strategy

Philanthropy, like venture capital, requires strategy. Together with Keshet, we built a giving program that reflects our values and maximizes impact. Every decision -from choosing focus areas to evaluating nonprofit partners – was made with intention, transparency, and a long-term view. We measure outcomes. We iterate. And we stay involved.

We’re proud that our investors have joined us on this journey, aligning around a shared belief that success carries responsibility. Their engagement extends beyond capital; they take part in mentoring, networking, and supporting the students we serve.

When we founded Horizon in 2012, we aimed to help early-stage software startups grow from seed to scale. But from the start, we also knew we wanted to build something bigger than returns. We wanted to be a force for good.

At its best, this is what collaboration between the business and social sectors can look like: venture-backed giving that is strategic, measured, and deeply human. For us, community impact isn’t a separate activity from investing. It’s all part of the same mission: helping builders thrive.

This is how we define return.

The venture capital landscape is undergoing a fundamental shift. Traditionally, startups’ path to secure funding was clear: a small seed round, a significant Series A, followed by large-scale growth rounds ranging from tens to hundreds of millions of dollars to accelerate growth. However, the increasing integration of artificial intelligence (AI) into development, marketing, and operational processes is reshaping this trajectory at a pace that raises an important question: are venture capital investments still as necessary as they once were? As an early-stage VC firm, we see hundreds of startups each year. Over the last year or so, we’ve been noticing a growing number of companies that require significantly less funding to reach critical milestones.

AI’s ability to optimize processes, shorten development cycles, and reduce resource requirements allows startups to achieve significant traction with far less capital. A SaaS company developing a complex AI-driven product today may not need the same capital-intensive approach. With leaner teams, open-source tools, and AI-powered marketing automation, these startups can drastically reduce their time to market (TTM), as well as development and operational costs. Consider the case of software startups that once needed $5 million to reach a market-ready product and acquire their first customers. Today, many are achieving the same results with half the funding or even less. Within our portfolio, we already see companies that used $1.5M of funding to reach $1.5M ARR.

This shift is altering how startups approach fundraising. Instead of following a predictable, linear path, companies are embracing greater flexibility in capital raising. More startups are opting for bootstrapping or smaller funding rounds, allowing them to maintain greater control and ownership. As a result, venture funds are encountering startups at more advanced stages of maturity, sometimes with a solid customer base and revenue, before even seeking their first institutional check.

How Is This Affecting the Venture Capital Model?

If this trend continues, we could see a fundamental restructuring of venture capital itself. The number of funding rounds may shrink, and check sizes could decrease. Growth-stage funds are already adapting to a world where less capital is required in later stages and are possibly competing for earlier-stage deals to be more competitive.

This transformation presents a dual challenge for venture capital firms. On the one hand, it opens new opportunities: early-stage investments in AI-powered companies could generate even higher returns. On the other hand, funds that are structured to enter deals at later stages will need to adapt to a landscape where competition starts earlier.

For founders, this power shift means stronger negotiating leverage. Smaller funding rounds result in lower dilution, enabling them to retain a larger share of their companies. Additionally, heightened competition among investors could lead to more favorable deal terms for startups at the earliest stages. As seed investors, we are much more aligned with the founders, therefore, less dilution means better returns.

An Evolution, Not an Overnight Revolution

Despite the visible changes, the traditional capital-raising model isn’t disappearing overnight. Scaling quickly in a competitive market still requires meaningful capital. As technology continues to reduce costs and increase efficiency, the gap between startups that need $15-20 million to reach meaningful revenue and those that need $50 million will start closing. This likely means companies will require less funding to reach unicorn status. But does that mean these lean startups could beat your competitors with no money in their pockets? And will growth funds disappear, or will large rounds become obsolete? Not necessarily.

Founders who raise smart money, and not just big rounds, prove value quickly, and choose the right partners will be the ones who benefit most from this shift. The world is moving from a “raise as much as possible” mindset to a “raise wisely” approach, and the path forward is still unfolding. The rise of AI-driven efficiency doesn’t signal the end of venture capital as we know it, but it does mark a major evolution in how and when capital is deployed. Understanding how to navigate and leverage AI’s impact on funding strategies will be key to thriving in the next era of venture capital.

You can also find this opinion on CTech

Over the years at Horizon, I’ve reviewed more than 1,500 pitch decks from SaaS B2B startups seeking their first round of funding. Some of these decks captivated my attention within minutes, while others quickly lost my interest. The difference often comes down to how well the founders tell their story. A pitch deck isn’t just a collection of slides; it’s a structured narrative designed to spark interest, create urgency, and ultimately convince investors to engage further. The goal of your deck is not to close a deal on the spot, but to secure that all-important second meeting. To do this, your presentation must be clear, concise, and compelling, highlighting the opportunity in a way that makes it impossible for investors to ignore.

The Founding Team: The Right People for the Problem

Investors in B2B SaaS don’t just invest in products—they invest in people. A startup’s success depends as much on the founding team as it does on the business model. Investors want to see that you and your team have the technical expertise to build a strong product and the go-to-market knowledge to navigate the complexities of B2B sales. Your team slide should highlight the backgrounds of the founders, their relevant industry experience, and any past successes, such as exits or leadership roles at high-growth SaaS companies. If you have key hires or advisors with deep domain expertise, this is the place to showcase them. The stronger the founding team’s experience and credibility, the more confidence investors will have in your ability to execute.

The Mission: What Problem Are You Solving?

A compelling pitch deck starts with a clear mission statement that defines the problem your startup is solving. The best B2B SaaS companies don’t just offer new features—they solve real pain points for businesses. Your mission should articulate the core challenge your target customers face and why your solution is essential. Instead of framing this in generic terms, quantify the impact of the problem. How much time, money, or efficiency is lost due to this issue? What does it cost businesses to leave this problem unresolved? By positioning your startup as the solution to a well-defined and costly problem, you make your value proposition undeniable.

The Solution: How Your Product Delivers Value

Once the problem is established, your next job is to explain how your SaaS product solves it in a unique and effective way. This is not a place to list every feature of your product but rather to focus on the value it delivers. How does your software streamline processes, increase efficiency, or drive revenue for your customers? What makes your solution different from what already exists? Investors are looking for differentiation—whether it’s a proprietary technology, an innovative approach, or a business model advantage. If possible, include visuals, a short demo, or screenshots to make your solution tangible. Show how easily it integrates into customers’ workflows and highlight any early traction, such as pilot programs or testimonials.

Market Validation: Proving Demand and Total Addressable Market

For SaaS B2B, this section is crucial. Investors want to know that there is a sizable and growing market for your solution. This means presenting credible data on your Total Addressable Market (TAM) and explaining how much of it your startup can realistically capture. Beyond market size, validation also comes from traction. Have you signed early customers, received inbound interest, or secured strategic partnerships? If you have metrics like revenue growth, user adoption, or retention rates, you should highlight them. Early traction signals that there is real demand for your solution and that you are solving a problem businesses are willing to pay for.

Competitive Landscape: Why You’ll Win

In the SaaS B2B world, competition can be fierce, but it’s also where you can shine. Identify your main competitors – both direct and indirect – and show how your solution is superior in terms of features, user experience, or cost. Rather than claiming you have no competitors, use this section to demonstrate why your product is superior. Provide a well-researched comparison of existing solutions and highlight your competitive edge. This could be due to a unique feature set, a lower cost of ownership, better ease of use, or a strong network effect. If you have defensibility through data, integrations, or proprietary technology, emphasize that here. Investors want to know what will prevent competitors from copying your approach and why customers will choose you over others.

Go-to-Market Strategy: Your Plan to Scale

In SaaS B2B, the go-to-market strategy is everything. Show investors how you plan to acquire customers, whether it’s through inbound marketing (content, SEO, etc.), outbound sales (cold calling, sales teams), or partnerships. Explain your customer acquisition process, sales cycle, and conversion funnel. Investors will also want to see key metrics such as Customer Acquisition Cost (CAC), conversion rates, and expected payback periods. If you have early traction with a repeatable sales motion, highlight that as proof of concept. The more structured and data-driven your go-to-market plan, the more credible your path to growth appears.

Business Model and Financials: Proving Revenue Potential

A successful SaaS B2B startup is built on strong unit economics and predictable recurring revenue. In this section, investors want to see a clear breakdown of how your company makes money. Explain your pricing model—whether it’s a monthly subscription, annual contracts, or usage-based pricing. Show your revenue projections and outline your key SaaS metrics, including Annual Recurring Revenue (ARR), Monthly Recurring Revenue (MRR), gross margins, and churn rate. The relationship between your Customer Lifetime Value (LTV) and CAC is particularly important; a healthy LTV-to-CAC ratio should be at least 3:1. If you can show that your business has strong retention and a scalable model, you’ll inspire confidence in your ability to drive long-term profitability.

Product Roadmap: The Future of Your Startup

Investors are not just backing your current product—they are betting on your vision for the future. Your roadmap should provide insight into how your product will evolve and scale. Highlight upcoming features, technology enhancements, and plans for market expansion. Lay out the key milestones you aim to hit over the next 12-24 months, whether it’s reaching a specific revenue target, expanding into new verticals, or launching new integrations. A well-structured roadmap reassures investors that you have a clear, realistic plan for growth and innovation.

The Ask: How Much You’re Raising and Why

Every pitch deck must include a clear funding ask. Investors want to know how much capital you are raising, what you plan to use it for, and what milestones you will achieve with it. Break down how the funds will be allocated—whether it’s hiring key talent, accelerating product development, or scaling customer acquisition efforts. Transparency in your financial planning builds trust and helps align investor expectations with your company’s objectives.

Final Thoughts

Creating a compelling investor pitch deck is both an art and a science. Your deck should be data-driven yet engaging, concise yet informative, and structured in a way that tells a clear and compelling story. The best decks don’t just present information—they make investors feel the urgency and potential of the opportunity. By focusing on your team, problem, solution, market, go-to-market strategy, and financials, you can craft a pitch that not only captures investor interest but sets the stage for a successful funding journey.

With these sections clearly laid out, you’ll be well on your way to creating a pitch deck that captures the attention of investors.

Good luck with your pitch, and if you need feedback or have any questions, feel free to reach out!

Download our ready-to-use Investor Pitch Deck Template Here.

Good Luck!

The Mutual Action Plan (MAP) is a powerful tool for sales teams to align with their buyers, build trust, and create a clear roadmap to a successful deal. By collaboratively outlining key milestones, stakeholders, and timelines, a MAP ensures that both the seller and the buyer stay on track, minimizing surprises and accelerating the path to a closed deal.

Why Use a MAP?

When to Introduce a MAP?

The best time to introduce a MAP is as soon as a deal moves into a serious evaluation stage, typically after initial discovery and once there is mutual interest in moving forward. It should be framed as a collaborative planning tool to help the buyer navigate their own internal buying process efficiently.

How to Present a MAP?

Check out the MAP Template on our Forge Ahead page to streamline your sales process and close deals with greater predictability.

Simply copy/paste it into your own spreadsheet or Google Sheet, adapt it to your requirements, and start sharing it with prospects.

You’ll also find other tools to help you Master Uncertainty, take a look!