"Especially in such challenging times, it is important to push high-tech forward and prove Moody's wrong"
"Especially in such challenging times, it is important to push high-tech forward and prove Moody's wrong"
Ronen Assia, Managing Partner of Team8 Fintech, commented on the agency's decision to downgrade Israel's credit rating during a startup competition organized by the fund in collaboration with Harel's GUTS Innovation Hub, AWS, HSBC, and Deloitte. The winning startups, Paylow and CitrusX, which focus on reducing fixed expenses and mitigating AI risks, will participate in a follow-up event this November in New York, where they will meet investors and venture capital funds alongside a group of fintech startups from Team8.
"Especially in such challenging times, it is important to push high-tech forward and prove Moody's wrong. We must emerge from this crisis," said Ronen Asia, Managing Partner of Team8 Fintech, commenting on the international rating agency’s decision to downgrade Israel’s credit rating by two notches and signaling a potential further downgrade.
Assia made these remarks at an event held on Monday) at Harel's GUTS Innovation Hub in Ramat Gan. Dozens of fintech entrepreneurs attended the event, which serves as a precursor to a major event Team8 will host this November in New York, in collaboration with Harel's GUTS Innovation Hub, AWS, HSBC's Innovation Banking, and Deloitte's Catalyst startup program.
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A pitch at a startup competition organized by Team8 in collaboration with AWS, HSBC, and Deloitte.
(Photo: Orel Cohen)
As part of this initiative, Team8 seeks to deepen its involvement in the fintech sector, similar to its success in cybersecurity, by building an ecosystem of leading global experts. These experts will provide insights into emerging trends in fintech, offer new ideas, and assess the potential for Team8’s fintech startups to succeed.
"Our fintech startups will participate in the event in New York," explained Asaf Azulay, Partner and CMO at Team8. "Additionally, two other companies will join us."
The two companies, Paylow and CitrusX, were selected from among 14 fintech startups during a competition held at the event. According to Azulay, the New York event will offer all companies (the two winners and those in Team8's portfolio) exposure to key figures from tech giants, venture capital funds, and potential customers.
"Those who attend the event in New York will participate in another competition," Azulay added. "The winner will not only receive recognition on the Nasdaq building but also a ticket to the world's largest fintech event, which will be held this March in Las Vegas."
The panel of judges for the competition included Ronen Assia (Team8), Amit Harel (Deloitte), Tomer Goldberg (GUTS Harel Innovation Hub), Keren Zemer Abramowitz (AWS), Hadar Siterman Norris (Team8), David Cohen (HSBC Innovation Banking), Asaf Charnilas (Team8), Anotonella Kamien (AWS), Meir Slobodov (HSBC Innovation Banking).
"Right now, there’s strong interest in hearing about Israeli high-tech companies because investors know that the best companies emerge during crises," said Azulay. "Israeli entrepreneurs, feeling under pressure, tend to push boundaries, and many foreign investors see this as the time to increase their investments in Israel."
However, Azulay acknowledged that some investors are hesitant due to the protests in Israel. "While some say it’s not the right time to invest in Israel, others are eager and even doubling their investments," he explained.
"We’ve identified a great deal of unrealized potential in the Israeli fintech industry," said Amit Harel, Partner and Deloitte Catalyst Leader, who also attended the event. According to Harel, the key to unlocking this potential is exposure to global players: "Israel has a chance to lead fintech to the forefront."
When asked about the credit downgrade and the ongoing war, Harel noted that "we haven't felt the effects of the downgrades yet. What we feel is that Israel, as a hub of innovation, needs to reinvent its narrative and focus more on the intersection of technological and business innovation."
"It’s no longer enough to just present good Israeli technology. You also have to demonstrate its business applicability," Harel added. "Large corporations are looking for scalable businesses and care less about where you're from, even after October 7."
Harel emphasized that trust will be a significant issue in the coming decade. "In the world of digital and virtual banking, it’s increasingly important to verify identity and actions. As this trend grows, Israel is well-positioned to lead, thanks to its expertise in data, cybersecurity, and AI."
The event featured a lecture from Olympic judoka Peter Paltchik, who won bronze medals at the Paris 2024 and Tokyo 2020 Olympics. Paltchik shared his remarkable journey, from being born with over 20 fractures to his triumphs on the Olympic stage. He recounted lessons in self-discipline from his Russian grandfather and the challenges he faced, such as sleeping in his car to avoid traffic.
"In my childhood, I learned the importance of self-discipline and how systematic effort over six months or a year can lead to great rewards, much like in investing," Paltchik shared. He also spoke about the value of mental flexibility, explaining how he improved his left-hand techniques despite being right-handed, a shift that greatly enhanced his performance.
Another speaker was Asaf Sides, co-founder and CEO of the storytelling company Leave a Mark, which helps people and organizations tell their stories. Sides shared the unconventional way he founded the company: "On my fourth date with Sarah, who later became my wife, she asked for help preparing an investor presentation. By 4 a.m., we both felt we were onto something, and we decided to start the company. Today, we have 30 employees."
Sides discussed how fintech startups, often perceived as "heavy" due to competition with banks and insurance companies, need to generate interest. He presented strategies for how fintech companies can outmaneuver larger players and provided several examples.
At the heart of the event was a competition between 14 startups, all vying for the opportunity to present their products to prominent tech giants and venture capital funds in New York, alongside fintech startups from Team8's portfolio.
In the pre-seed category, Paylow, founded by Sagi Avitan (CEO) and Hanan Amar (CTO), won. The startup, established in 2022, uses machine learning to help users (B2B2C) track fixed expenses, compare subscriptions, and switch providers effortlessly. "People often don’t realize who they’re paying or how much. When they do, they don’t act because it is too tedious. But over time, it adds up," said Avitan.
Paylow, currently operating in the UK, has developed a solution that displays users' recurring expenses on a dashboard. The platform monitors consumption habits and facilitates provider changes, "down to the technician level," Avitan explained.
In the seed category, CitrusX, co-founded by Noa Srebrnik (CEO) and Gilad Manor (CTO), took the prize. The Tel Aviv-based startup, founded in late 2021, specializes in AI risk management. To date, the company has raised $4.5 million and operates in North America, the UK, and Israel.
"We’ve developed a system that sits within organizations and manages AI risks," Srebrnik explained. "Organizations often don’t know if an AI model is immune to threats or whether it may mislead or discriminate. We identify risks and help organizations mitigate them to comply with regulations."
Paylow and CitrusX will join several of Team8's fintech startups on the trip to New York. Among them are Panax: Cash flow management for lean finance teams with complex treasury needs. 40Seas: A global accounts receivable management platform with embedded financing and B2B payment options for merchants selling to SMBs worldwide. Bluespine: An AI platform that empowers self-insured employers to reduce financial leakage and contain healthcare spending. Ballerine: Streamlines AML and fraud risk assessment for financial institutions and fintechs with an AI-powered platform that unifies data and automates summarization and decision-making. April: Embedded tax solutions for banks, fintechs, and payroll platforms to help Americans file, estimate and optimize their taxes.
"This competition highlights the exceptional talent driving fintech innovation, and we’re proud to showcase the best of the ecosystem at Fintech Village NYC," said Assia. "These startups represent the future of the industry, and we look forward to seeing them connect with global investors and leaders in New York."
