2025 VC SurveySarona Ventures: “2025 will be a year of recalibration”
2025 VC Survey
Sarona Ventures: “2025 will be a year of recalibration”
Sarona Ventures joined CTech for its 2025 VC Survey to share insights about the past year and predictions for the next few months.
“2025 will be a year of recalibration. The challenges lie in navigating global economic uncertainty, the rising cost of capital, and maintaining Israel's talent pipeline amidst geopolitical tensions,” writes Toot Shani, Managing Partner, CEO at Sarona Partners. “On the flip side, there are unprecedented opportunities to lead in generative AI, where Israel has a clear talent-based advantage.”
Sarona Partners is the latest VC to appear in CTech’s 2025 VC Survey, where prominent investors are invited to share their insights on how they think the next year will affect Israel and its Startup Nation.
You can read the full interview below.
Fund ID
Name of fund/funds: Sarona Ventures
Total sum of the fund: $25M
Partners: Philippe Bouaziz, Toot Shani, David Debash, Morris Levy
Notable/select portfolio companies (active): Agora, Crowded, Verbit, Deel
Notable exits: Donde (Shopify), Hofy (Deel)
2024 is almost over. How can you summarize it in terms of the Israeli high-tech industry?
In the startup world, a tough climate emphasizes great companies and great founders, whether economically tough, politically tough, or war-tough.
This year, from our eyes, reminded everyone in the industry of what material we are cut out of, and how much impact - and therefore responsibility - we really have on Israel’s position in the world.
Looking ahead to 2025 - What challenges and opportunities await the Israeli high-tech sector in the coming year, and how are you, as investors, preparing for them?
2025 will be a year of recalibration. The challenges lie in navigating global economic uncertainty, the rising cost of capital, and maintaining Israel's talent pipeline amidst geopolitical tensions. On the flip side, there are unprecedented opportunities to lead in generative AI, where Israel has a clear talent-based advantage.
At Sarona Ventures, we're sharpening our focus on early-stage investments in transformative technologies and AI for real-life business applications, focused on repeat founders who can rapidly benefit from our US connections and global-scale operational experience.
How will new American leadership affect the global high-tech industry or economy? And where does this place Israel and its entrepreneurs?
Hopefully the new leadership can correct the anti-Israel narrative, and make future moves to clarify the bond between both countries and economies. That will allow now-reluctant American investors and LPs to reallocate capital proudly to Israel and Israeli companies.
Are there new sectors you see as relevant? Are there any fields you anticipate will weaken significantly in the coming year?
Relevant sectors include AI-driven applications in all domains, as well as quantum computing. The market continues to be profitability-driven, looking for companies with clear, working unit economics.
Is Israel missing out on the AI revolution in the global arms race? If not, what should the local industry focus on to join the global race?
Israel isn't missing out but must act decisively. The focus should be on applied AI—leveraging the nation’s strengths in cybersecurity, healthcare, and defense—while fostering collaboration between academia and industry to drive foundational breakthroughs.
Could the global IPO drought end in the coming year?
We estimate the end in 2025 or early 2026.
From an investor's perspective: will the coming year be better for early-stage startups or more mature companies?
Somewhat balanced in the edges, early stage or late growth will have a slightly easier climate vs. companies in the middle stages.
Did you raise fund money in 2024 for an existing fund or a new one? What are your expectations regarding this matter for 2025?
Yes we have. In 2024 we launched Sarona TechShield Reverse Fund, enabling retail investors from across the world to continue investing in high-performing Israeli companies amid the ongoing war. We've brought capital from over 60 investors from all over including US, UK, France, Italy, HK, Germany, Chile and Thailand, and deployed in five excellent founders, mostly second and third timers, looking for 6th and final company to invest in.
How many investments did you make in 2024, and how does it compare to previous years?
In 2024 we’ve made five investments including Velotix, BonData, Sauce, and Perfect, besides a dozen follow-on investments into existing portfolio companies.
We are very bullish on the current market and look forward to the new investments in 2025.
Provide an example of an intriguing investment you made in 2024. What sets this company apart, or what is distinctive about its sector?
In 2024, Sarona Ventures invested in Velotix, an AI-driven data security platform that learns how and when to apply access policies, getting smarter over time.
By leveraging explainable AI, Velotix empowers organizations to secure and utilize data effectively while maintaining transparency and trust. Operating at the nexus of data security and artificial intelligence, Velotix stands out for its transformative potential in a rapidly evolving regulatory landscape, driven by an exceptional founding team and clear market demand.
Two notable companies that you think will thrive in 2025.
Company Name: Crowded
Sector + description: Fintech
Investment amount + total: $13.5 million (Series A)
Founding Year: 2021
Reasoning why this is their year: Crowded is first to market in a widely blue ocean, bringing a best-in-class platform for the underserved nonprofit market
Company Name: Agora
Sector + description: Proptech / Fintech
Investment amount + total: $63.9 million (Series B)
Founding Year: 2019
Reasoning why this is their year: Agora is now extremely established in their industry, becoming a well-known brand in their category and starting to be used as the best practice for their category.
