Hi, Agen. Perhaps not surprisingly, funding to Israel’s startup sector has taken a massive hit in the months since Hamas’ attack on the nation. We look at the funding decline in 2023, which saw the lowest investment level in Israeli startups since 2018, and talk to investors and entrepreneurs in the country about why they’re hopeful things will improve this year. Plus, regulators around the world seem to have resolved to look more closely at AI investing in 2024. Venture funding to Israel-based startups in Q4 2023 hit its lowest point since early 2017, as just more than a half-billion dollars was invested in private companies with tensions and violence rising in the region. Related Crunchbase Pro list: Funding To Israel-Based, VC-Backed Startups It’s been nearly a year since Microsoft announced its $10 billion investment into generative AI darling OpenAI, the largest startup funding deal in any sector last year. So why does it seem like regulators around the world are just now catching on? We look into the mounting regulatory pressure on Big Tech-backed AI startups in this week’s Eye On AI column. Crunchbase News readers who responded to our latest survey are more optimistic about the state of the economy and startup world going into 2024 than they were a year, or even just six months, ago, though they’re still skeptical about an IPO market rebound and many aren’t banking on AI to dramatically recharge the tech world this year. Many venture investors are starting the new year feeling quite good about the startup industry’s prospects in 2024. Funding has likely already hit its low, the exit markets seem poised for a comeback, and the industry appears to be coming to terms with the new normal of work, they argue. Startups in Asia raised their lowest amount of funding in years last year, with early-stage companies the hardest hit. Despite some larger deals, 2023 ended on a particularly low note. |
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