The term “AI transformation” has replaced “digital transformation” across all sectors of society and industry. Consider automation in bus and transport scheduling; using threat intelligence for detecting fraud and managing supply chains; and leveraging social media insights for both businesses and governmental entities. Among numerous investors, one standout is a Tel Aviv-based company.
New Era Capital Partners
invests in solutions aimed at transforming traditionally antiquated sectors and integrating them with an AI-driven ecosystem. As Partner Ziv Conen explains, “A key theme for our funds revolves around converting archaic manual processes and industry-specific procedures into the digital realm.” Established in 2017, New Era Capital Partners specializes in early-stage funding for Israeli startups or companies initiated by Israelis that leverage cutting-edge technology. This focus particularly emphasizes
AI and ML
During a recent conversation with me, Conen discussed the initiatives of New Era’s Fund III, set to conclude in June, emphasizing its increasing concentration on cybersecurity ventures utilizing automation via artificial intelligence. This particular fundraising effort started soon after the onset of the Swords of Iron War in October 2023 and achieved its initial closure in December. Despite certain investors being wary of backing Israeli enterprises amid wartime uncertainties, many viewed it as a promising chance.
“Many high-net-worth individuals and some institutional backers recognized both Israel’s appeal and the exceptional opportunities presented,” states Conen. “With international financiers retreating, local valuation appears increasingly favorable, offering prime entry points for savvy investors anticipating long-term gains.”
New Era operates without sectoral constraints, focusing instead on sectors like cybersecurity, fintech, human resources technology, development tools, and intelligent transportation systems, provided they offer distinct advantages through innovative techniques or patents. Notably, advancements in AI and machine learning frequently underpin these distinctions within targeted startups.
Specifically highlighting cybersecurity—a burgeoning segment within their portfolio—Conen underscores how swiftly digital landscapes change necessitating adaptive defenses. Drawing upon past roles leading technological units in Unit 8200, obtaining advanced degrees from prestigious universities, and consulting globally renowned corporations, Conen brings profound insights into current challenges faced by modern cybersecurity ecosystems.
The significant buyout by Google of an Israeli cloud security company for $32 billion earlier this year bolsters confidence regarding future prospects in cybersecurity markets. Such acquisitions affirm prevailing perceptions around emerging risks demanding robust countermeasures driven partly by advances in autonomous defensive mechanisms enabled largely through AI implementations.
Looking forward, anticipated double-digit compounded yearly increases forecast sustained expansion throughout coming decades reinforce expectations surrounding ongoing developments shaping tomorrow’s protective measures against pervasive online perils impacting various economic segments worldwide.
The article was produced in collaboration with New Era Capital Partners.
