"We expect to see startups generating $100M in revenue within two years, with fewer than 50 employees"

"Artificial intelligence is the most significant technology of our lifetime, one that will change our lives and create a new kind of society," said Catherine Lenson, COO of Phoenix Court Group, at a panel held during the Mind the Tech London 2025 conference organized by Calcalist and Bank Leumi.

The panel also featured Roee Furman, Founding and Managing Director of Doral Energy-Tech Ventures; Melissa Klinger, Partner at DIG Ventures; and Nick Hancock, Principal at One Peak. It was moderated by Haim Shani, Partner at Israel Growth Partners and Chairman of the UK-Israel Tech Hub.

UK-Israel Tech Hub panel.

The UK-Israel Tech Hub is a non-profit initiative based at the British Embassy in Israel since 2011. Established by the British government, its mission is to drive economic growth and foster strategic partnerships between British and Israeli innovation.

Nick, is AI an investment opportunity for you?

Nick Hancock: “As investors, this is the most important focus in our portfolio today. We look at three areas: applications, infrastructure, and models. While we also invest in models, our main interest in infrastructure and applications is vertical software, companies with deep expertise that can dominate a market.

"In infrastructure, we know organizations want to adopt AI but often don’t know how, so we seek companies that can help them implement AI models and applications effectively. That is where we see significant opportunity.”

Catherine, what is your perspective from Phoenix Court?

Catherine Lenson: “This is clearly our field. Three years ago, we didn’t talk about it at all. Today, it’s an enormous opportunity for the UK. We see world-class academics here in Europe, and that gives us the foundation to build significant companies.

Melissa Klinger: "It’s very exciting, AI is the most important technology of our lifetime, one that will change our lives and create a new type of company. We expect to see highly cost-efficient businesses generating $100 million in revenue within two years, with fewer than 50 employees.

"We are already investing in companies that will underpin this transition. At the infrastructure level, we once invested heavily in cloud infrastructure; now we need the same for AI. Both Israel and the UK will play major roles in this shift.”

Roee, as a corporate fund in the energy sector, how does this connect to your field?

Roee Furman: “For Doral, AI is extremely significant. The demand for energy from AI companies is huge, and clean energy is critical to meet it. Every time someone uses chat software, it consumes megabytes of energy, even without video, just a single question.

"What matters is building stronger energy infrastructure, ensuring proper energy use, developing reliable backups, and creating more efficient chips. Energy is central to enabling this transformation. There’s also a pressing need for cyber infrastructure and AI tools in the sector.”

For Israeli funds, where are the biggest opportunities in the UK in terms of investment phases and areas?

Nick Hancock: “The UK leads in several areas, especially fintech and insurance software. Universities here produce strong technical talent, but often without the growth mentality needed to scale globally, particularly to the U.S.

"This is where European companies can learn from Israel. Because of its small domestic market, Israeli startups go global almost immediately. That mindset is crucial, and dialogue between industries can help accelerate it.”

Catherine Lenson: “At Phoenix Court, we distinguish between unicorns and what we call ‘thoroughbreds.’ A unicorn’s valuation is aspirational, but a thoroughbred is a company with $100 million in actual revenue. The UK has over 700 such companies, and 54 generating more than $25 million.

"There’s no shortage of seed capital in Europe, but there’s a shortage of scale-up funding. Only 20% of European investments reach this stage, compared with 80% in Silicon Valley.”

Melissa Klinger: “That funding gap also exists at the fund level. We raised a $100 million fund a few years ago, which was significant. But many funds fail to raise at all.

"In the last seven years, the UK has ranked second globally in founding AI companies and in the number of offices established here. Google has pledged $5 billion in investment, and the government is also committing long-term. London is on an upward trajectory, and there’s much to learn from Israel about scaling companies.”

Roee, as an Israeli corporate fund, what are you looking for in the UK?

Roee Furman: “Most Israeli funds invest domestically, but we chose to invest where the best technology is. For example, we backed an Oxford spinout in the carbon sector, alongside many other investors. We’re looking for companies hungry to build truly global businesses.”

Nick, what has been your experience investing in Israel?

Nick Hancock: “I visit Israel once a month, and the density of high-quality companies is extraordinary. Tech firms must have a presence there. I admire the resilience of the Israeli economy and its tech sector, which withstands intense pressures.

"There’s a healthy investment atmosphere across all stages. We invest in later stages in Israel, often in partnership with local funds, which are invaluable sources of knowledge and collaboration. Israel is an honor, not just for Israelis but for the global ecosystem.”

Catherine Lenson: “I work closely with Saul Klein, a leading figure in the industry, who invests in both the UK and Israel. Companies like Melio and Agora show the value of such cross-market strategies. We also have a team that includes Israelis, including a Talpiot graduate.

"There’s no single secret to success, but Israel’s ecosystem shows how collaboration drives results.”

Melissa Klinger: “I’ve had excellent experiences investing in Israel. Sarona, the hub of Israeli tech, is nothing like Silicon Valley, it’s a tight-knit, highly connected community with a unique mindset.

"Israel was one of the best exit markets last year, delivering strong returns. Many companies are built with acquisition in mind, and that’s something European founders can learn from.”