"Israel is not only on the AI train—but it is sitting in the front cars"
Gili Elkin, founder and managing partner of the ICI Fund, was speaking at the Calcalist InvesTech conference in collaboration with IBI Capital. Hila Rom, founder and managing partner of Runi Ventures: "Every industry—from aviation to healthcare and education—is undergoing an AI revolution."
“Not only is Israel on the AI train, but we are also sitting in the front cars,” said Gili Elkin, founder and managing partner of the ICI Fund, at Calcalist’s InvesTech conference, held in collaboration with IBI Capital.
Elkin was joined by Hila Rom, founder and managing partner of Runi Ventures, in a panel discussion moderated by Calcalist’s Maayan Cohen-Rozen. The two investors discussed the vast potential of AI, optimal investment strategies in the field, and emerging trends expected in the coming years.
You invest, but before that, you also have to raise capital. How was fundraising during the last two years of war? Did you notice a change in investors' attitudes?
Hila Rom: "When the war started, the entrepreneurs and I were in the reserves. On a practical level, the investors in our fund are highly experienced and familiar with Israeli high-tech. Ultimately, they asked themselves whether the fund could secure better deals than competitors and whether we, as fund managers, could provide real added value to our portfolio companies.
"We invest in very early-stage companies and are deeply involved with the founders. After the initial shock of the first few months, investors regained confidence—first in the entrepreneurs and then in us."
Gili Elkin: "ICI is an American fund that focuses on Israeli startups developing AI solutions that shape the future. Our two funds provide the first check to the startups we invest in. Even before the war and the judicial reform, raising money at such an early and uncertain stage was very difficult.
"Before these events, we managed to raise funds from two out of every 100 investors. Afterward, it became much harder—we now secure funding from just one in 100 investors. American investors were very cautious after October 2023, but they saw Israel’s resilience and the tech ecosystem’s continuity. They realized this was a good opportunity to get on board. In recent months, I raised our second fund. From here, we only grow."
You operate in a competitive environment. What makes each of you unique in the crowded ecosystem?
Hila Rom: "As someone who was an entrepreneur and executive until her forties before transitioning to venture capital, I remain deeply connected to the entrepreneurial side. My role as an investor extends beyond financial backing—I provide strategic support to founders. When I established the fund, it was crucial to me to create immediate value for investors and strategic clients while guiding entrepreneurs through critical decisions.
"Initially, these commitments were just on paper, but today, 13 entrepreneurs I invested in act as the fund’s ambassadors, proving that we deliver on our promises. Whether it's securing interns, gaining international exposure, or networking, we provide tangible support."
Gili Elkin: "Even though we’ve been running the fund for seven years, it still feels like we’re building something new. If I had to highlight two key differentiators, the first would be the strong community we’ve built—both among the exceptional Israeli entrepreneurs we invest in and the American investors, business leaders, and VCs in our network. We have 50 investors in the U.S. who connect Israeli startups to the American market.
"The second factor is our strong focus on diversity. In the U.S., many funds prioritize investing in minority-led companies, but in Israel, this is less common. This issue is very important to us. We actively seek diverse teams in the broadest sense of the word.
"Last month, we launched an initiative inviting pre-seed and seed-stage AI startups to compete for a $1 million investment. We partnered with Tami Geniger and Noa Tamir (CEO of Calcalist) to encourage more women to step forward. We expected 20 applications but received 208. Of the 11 startups we invested in, nine are led by female CEOs. We make a significant effort to find and support diverse companies, which sets us apart."
Some claim Israel has missed the AI train. What do you think about that? Where do you see opportunities for entrepreneurs in AI?
Hila Rom: "We definitely haven’t missed the train. AI infrastructure requires massive funding and computing power, which we lack. It’s unlikely that Israel will be a global leader in AI infrastructure. However, we excel in AI-driven applications that solve specific problems.
"Every industry—from aviation to healthcare and education—is undergoing an AI revolution. Israel has incredible expertise in data, and the winning teams will be those with both technological strength and domain-specific knowledge. Such teams can create AI products that deliver unparalleled value."
Gili Elkin: "We are not only on the AI train—we are sitting in the front cars. When you compare investment trends in Israel and the U.S., the patterns are similar, and we are ahead of Europe and Asia. About 30% of Israeli startups operate in the AI field. Over the past decade, the number of AI startups in Israel has surged by 170%, compared to just 12% growth in other sectors.
"Regarding opportunities, AI innovation is emerging in traditional industries such as water, energy, and healthcare. Critical infrastructure will always require AI-driven solutions."
