The founding partner of iAngels embodies multiple Israeli archetypes simultaneously: a Technion engineering graduate, a former Unit 8200 technologist, and an investor who advanced through SAP, IBM, and corporate strategy before returning to launch a venture from the ground up.

Fourteen years ago, she established iAngels on a bold premise: connecting Israeli early-stage technology with international investors prior to companies becoming widely recognized opportunities. The firm has backed over 120 startups and committed approximately half a billion dollars. Assia discusses these developments more as an engineer intrigued by systems than as a traditional financier, with AI currently capturing her primary attention.

She views AI not as a replacement for workers but as an enhancer. Most CEOs she encounters seek greater output from existing teams rather than staff reductions, envisioning each person supported by an array of digital assistants. This perspective counters prevailing concerns about job losses and obsolescence.

While public discourse often highlights risks of displacement, Assia emphasizes efficiency gains and fresh opportunities for entrepreneurs. She rejects apocalyptic interpretations, instead framing AI as a shift in how stories of progress are told.

Her outlook draws from experience across multiple technology waves, recognizing how sectors can misjudge trajectories. At iAngels, she has observed fields surge with high expectations only to encounter practical hurdles in production, supply chains, and operations.

Advanced technologies promised rapid change yet faced manufacturing and logistical constraints. Environmental and agricultural innovations thrived in Israel but frequently met regulatory and execution challenges. Adoption often proceeds slower than anticipated, requiring quick adjustments to market realities. Israel led in water and food technologies, yet expansion demanded factories, approvals, partnerships, and distribution beyond pure engineering.

The country evolved from Startup Nation to Scale-Up Nation, though collaboration or timely acquisitions may prove essential given its size. Assia sees the current moment as an opportunity to emerge as the AI Nation. AI stands apart because development economics have shifted fundamentally. Capital efficiency improves as tasks that once required months now complete in weeks, allowing parallel testing and iteration. A single million dollars can achieve what previously demanded three or four times that amount. Currency dynamics add complexity, with dollar-based revenues contrasting shekel-denominated costs, though AI tools help mitigate such pressures.

Beyond finances, AI lowers entry barriers for entrepreneurship. Individuals who once built projects in spare time can accelerate timelines dramatically. Less technical founders gain capacity to launch ideas previously out of reach.

The House Renovation Problem

Assia avoids over-romanticizing startups relative to established firms. AI disruption may benefit both newcomers and incumbents. New ventures can adopt AI-native approaches from inception, enabling rapid feature additions. Larger organizations encounter resistance from legacy systems and layered management, yet they retain advantages in distribution, customer bases, compliance, and scale. She likens integration to adding solar panels rather than demolishing structures, enhancing value without wholesale replacement.

Founders should target specific leverage points such as proprietary datasets or tailored workflows instead of competing directly with major model providers. Data ownership creates lasting advantages. Risks remain, however, as AI systems require robust architecture, security, and oversight to prevent breaches or misuse. At iAngels, protecting sensitive investor and legal information demands strict controls.

Early-stage decisions still center on teams and vision, but evaluation now prioritizes resistance to commoditization. Ideas easily replicated warrant caution. Assia urges founders to test in the market promptly rather than endlessly refining features.

She applies similar realism and belief to Israel's context. Periods of difficulty historically precede surges in both population and innovation. The current cycle demands participation rather than observation. The opportunity must be seized before momentum builds beyond reach, positioning the country to lead in AI rather than follow.

This article was written in cooperation with iAngels.