Gil Ben-Artzi shares perspectives on AI transforming venture funding, Israel's key strengths, and the extra steps founders must take beyond a solid product to win in America

Gil Ben-Artzi

(photo credit: Courtesy)

ByJERUSALEM POST STAFF

JULY 21, 2026 14:16

The Israeli technology sector is displaying renewed energy, yet the standards for new ventures have increased. What is required for a startup to thrive now, and what differentiates those securing funding from those that do not?

"Primarily, I seek entrepreneurs with profound insight into the issue they aim to address, frequently from personal experience, though not invariably. Early in a presentation, it becomes evident if an individual genuinely comprehends their clientele or views the matter remotely. Next is defensibility. AI has greatly lowered the expense and duration to develop software, rendering a mere concept insufficient. Others can swiftly create a comparable product. Standout firms possess harder-to-copy elements: unique data, significant distribution benefits, specialized knowledge, or superior execution speed. Finally, velocity. After achieving product-market fit, top founders accelerate rather than pause. This increasingly distinguishes solid firms from outstanding ones."

Israel has long led globally in cybersecurity, yet AI's swift ascent is altering the innovation scene. Which fields do you see offering the strongest prospects for Israeli startups in coming years, and where does the country maintain a lasting edge?

"Cybersecurity stays a core area for backers since Israel truly excels worldwide in it. UpWest led the first round in SentinelOne prior to its public listing, and we continue supporting emerging cybersecurity players such as Zenity. Meanwhile, I see vast promise in vertical AI. We have backed teams applying AI to areas including government technology, healthcare, physical AI, and other focused industries needing advanced technical skill plus nuanced grasp of intricate issues. The qualities that positioned Israel as a cybersecurity leader - exceptional engineering talent, technical precision, and skill tackling tough practical problems - are precisely those that will fuel the next wave of vertical AI firms. Together with cyber, I expect many of Israel's upcoming major wins to arise there."

Operating as a venture firm across Israel and the United States, you assist startups entering the American market. What are the main hurdles Israeli founders encounter when scaling abroad, and what sets apart those that establish a firm US presence?

"The primary error Israeli founders commit when entering the US market is undervaluing how much commerce relies on relationships rather than product strength alone. That often shows up as attempting to sell into America while staying based in Israel, expecting the approach that succeeded locally to appeal to US buyers, or bringing on a senior US sales lead too soon and assuming they will manage customer ties immediately. The shared element is trust. Earning credibility with American customers demands far more time and direct founder engagement than many anticipate. Regardless of a sales executive's background, they cannot substitute for the founder in those initial phases. There are no shortcuts; you cannot delegate the work of building trust."