Mapping Israel’s $20B GenAI boom: 342 startups and counting
New Remagine Ventures report charts explosive growth and the rise of agentic AI systems.
The Israeli GenAI ecosystem continues to punch well above its weight, driven by a unique mix of elite technical talent, entrepreneurial grit, and deep vertical expertise. A new report by Remagine Ventures, Israeli GenAI Landscape 4.0, maps the rapid and impressive development of Israel's generative artificial intelligence industry in 2025. This updated overview, building on the version published just over a year ago, paints a picture of immense growth, positioning the sector as one of the most dynamic and fastest-growing in Israeli tech.
According to Remagine Ventures’ updated data, the 2025 landscape now encompasses 342 Israeli startups that are primarily building products based on generative AI, rather than simply using it as a secondary feature. Since the previous edition of the report published in May 2024, no fewer than 198 new companies have been identified and added. The most significant increases were seen in Cybersecurity and Healthcare, followed by LLM Ops (Large Language Model Operations) and Marketing Tech.
The growth is not only in quantity. Israeli generative AI startups have now raised over $20 billion in funding to date. In the past year alone, 31 acquisitions have taken place in this space. Of these, 17 disclosed deal terms, with a combined exit value of $6.1 billion.
To be included in the landscape, startups had to meet two core criteria: raise at least $1 million in funding and have a product or service where generative AI is central to the value proposition. Companies that have been acquired or that use generative AI only peripherally were excluded from the main list. However, this year for the first time, the landscape includes a separate section tracking M&A activity in the space.
Israel's advantage stems from a potent blend of factors. According to Stanford's 2024 AI Index, the country ranks among the highest in AI talent concentration per capita globally. Layered on top are its globally minded entrepreneurs, deep domain knowledge, and increasing access to capital.
A notable trend in the 2025 landscape is the shift from standalone generative tools to agentic AI systems, autonomous or semi-autonomous agents capable of decision-making, task execution, and full workflow management in enterprise environments. Remarkably, over half of the new companies added to the landscape (104 out of 198) claim to offer agentic capabilities.
The updated 2025 report was prepared by Eze Vidra and Kevin Baxpehler, Managing Partners at Remagine Ventures, and Shanny Rofe, an Investment Analyst. “We’re in a truly unique moment in tech history, where new capabilities emerge daily, enabling founders to build products that were science fiction just a year ago,” said Eze Vidra. “Israeli entrepreneurs are seizing this moment with speed, creativity, and a deep technical edge, building agentic AI systems with real enterprise applications. This wave of innovation is not just impressive in scale, but in substance, firmly positioning Israel as a global leader in applied AI.”
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The startups gaining the most traction tend to share common traits: access to proprietary or hard-to-replicate data, domain expertise in high-friction industries, clear go-to-market strategies, and a plan for defensibility beyond off-the-shelf model tuning.
Despite geopolitical challenges, Israel's tech sector remains resilient and ambitious. Generative AI founders are building with urgency, focus, and global vision, attracting interest from top-tier investors, acquirers, and enterprise customers.
Remagine Ventures, which has actively backed 13 generative AI startups since 2019, hopes this latest landscape will serve as a resource for founders, investors, and anyone tracking the rapidly evolving future of AI. Israel’s generative AI sector isn’t just growing, it’s setting a new global benchmark in what applied innovation can look like.
