"Israeli entrepreneurs are uniquely positioned to capitalize on the AI wave"

"We are very optimistic about the Israeli market, particularly Israeli entrepreneurs," said Ziv Conen, a Partner at New Era Capital, at the Calcalist and Bank Leumi conference in Miami. "We began raising our third fund shortly after October 7, with the belief that this is an amazing opportunity to invest—where others see risk, we see opportunity."

Conen explained: "New Era was founded in 2017, and we are now raising our third fund. So far, we have invested in about 30 startups. We adopt an industry-agnostic approach, focusing on early-stage Series A investments. Our interest in Israel stems from the talent and resilience we identify in local entrepreneurs, particularly in artificial intelligence and cybersecurity."

He highlighted current market conditions: "Today, company valuations are especially attractive. The perception of high risk has led to a decline in competition from foreign investors, giving us an advantage in securing good valuations and high potential returns."

Is it a buyer's market?

"To a certain extent, yes," Conen said. "But this goes beyond valuations. The digital gap between Israeli entrepreneurs and customers in North America has narrowed significantly. Israeli startups can now communicate with American customers more easily and even close deals before establishing a physical presence in the U.S. This accelerates market entry and reduces costs."

Conen emphasized that "Israeli entrepreneurs are uniquely positioned to capitalize on the wave of artificial intelligence, thanks to their deep understanding gained through military service in technological units and exposure to world-class academic institutions."

Regarding the current business climate, Conen noted: "Today is a healthy time for startups. During the zero-interest period of 2021, a lot of money was available, and many ideas that received funding didn’t necessarily merit it. Now, we see fewer startups, but their quality has significantly improved. The focus is on building businesses with strong financial foundations and profitability."

You can watch the full interview in the video above.