2025 VC SurveyVC’s message to the government: “Bring them home, end the war, and resign!”
2025 VC Survey
VC’s message to the government: “Bring them home, end the war, and resign!”
Gili Elkin, Founder and Managing Partner at ICI Fund, joined CTech for its 2025 VC Survey and had some strong words for Israeli leaders.
“In 2025, we anticipate a notable increase in female entrepreneurs and funds dedicated to supporting women-led initiatives,” said Gili Elkin, Founder and Managing Partner at ICI Fund. “The influence of successful women in tech is inspiring a new wave of female founders, and we are proud to play a role in this evolution.”
ICI Fund (Innovation. Community. Intelligence) is a US-based VC firm investing in early-stage startups founded by Israeli founders with AI solutions that secure the future. Its community in the US supports the growth of its portfolio companies in the American market. Elkin joined CTech for its 2025 VC Survey to share insights and predictions for the year ahead - and hints at a future that may be female.
“At ICI Fund, while we don’t have a specific mandate to invest in female entrepreneurs, we make it a priority to meet all promising female founders in Israel,” Elkin added. “Female entrepreneurs bring exceptional leadership and innovation to the table, and studies show that women-led companies deliver a 35% higher ROI than their male counterparts. For us, supporting women-led ventures is purely a sound business decision.”
You can read the whole interview below.
Fund ID
Name of fund/funds: ICI Fund
Total sum of the funds: $50M
Partners: Gili Elkin (Israel) Tim Jones (Colorado), Yaron Wolfsthal (Israel), Mark Zitter (California), Ari Goldfarb (Israel)
Notable/select portfolio companies (active): Kando, Genda, Suridata, Predicta Med, illustria, illumex, Pelles.ai, Feminai, RangersAI, Reborn, UrbanMix, Buzzy
Notable exits: Eureka (acquired by Tenable)
2024 is over. How can you summarize it in terms of the Israeli high-tech industry?
The quote “There is no room for small dreams” by Shimon Peres resonates strongly in 2024, a year that has shown us there’s also no time to stop dreaming. I am inspired by the resilience and determination of Israeli entrepreneurs in 2024. Even amid personal and national challenges, they’ve continued to innovate and build, many while serving in the military or volunteering to support others. Entrepreneurs who weathered 2024's challenges have proven their ability to thrive under any circumstances.
Despite the turbulence, the high-tech industry demonstrated its resilience. Israel has maintained its position as the third-largest tech hub globally, raising approximately $9.8 billion across 683 companies from October 2023 to Q3 of 2024. Local VCs raised substantial funds, and major acquisitions by global corporates such as Salesforce and SAP underscore the global confidence in Israeli innovation.
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?
Some of the challenges from 2024, like global economic uncertainty and the ongoing mental strain from the regional conflict, may continue into 2025. However, Israeli entrepreneurs have shown great resilience and creativity, and this will continue to drive innovation. Investment will likely become more focused, with funds concentrating on the best-performing startups and the most talented teams.
For startups, the landscape in 2025 presents a golden opportunity to build resilient foundations. With a lean and focused approach, companies can tackle challenges head-on by concentrating on what truly matters: solving real problems with innovative, scalable solutions. By capitalizing on the global trend toward digital transformation and focusing on U.S. market expansion, Israeli startups can drive significant growth.
From a VC perspective, this environment offers an exciting chance to support Israeli startups and act as anchor investors, attracting more international capital. We see tremendous potential in nurturing companies that can not only withstand turbulent times but also emerge stronger and more capable of leading the future of innovation.
ICI Fund will continue to support startups with a long-term perspective—helping them build robust, sustainable businesses that thrive in dynamic environments. We are prepared to help our portfolio companies navigate the evolving landscape and position themselves for success in 2025 and beyond. We prioritize being not just investors but strategic partners, ensuring our portfolio companies can scale and succeed globally.
How will new American leadership affect the global high-tech industry or economy? And where does this place Israel and its entrepreneurs?
The Israeli high-tech sector operates independently of governmental influence, navigating political cycles with resilience. The long lifecycle of startups ensures they transcend political changes. While the U.S.'s current administration may spark optimism in specific industries like construction, the Israeli high-tech landscape remains solid and resilient regardless of political transitions.
What are the three most important things the Israeli government should do today to accelerate the high-tech engine in the coming year?
- Bring back the hostages (make any deal for any terms, now) - this will aid national healing and boost investor confidence.
- End the war.
- Resign.
Let the high-tech industry take care of the rest. These steps would create a more stable and attractive environment for global investment.
Are there new sectors you see as relevant? Are there any fields you anticipate will weaken significantly in the coming year?
In 2025, AI will play a major role in healthcare, especially in precision medicine, mental health, and digital health solutions, improving diagnostics, personalized care, and treatment. It will also drive efficiencies in industries like manufacturing, logistics, and finance, with AI-powered cybersecurity becoming critical for global safety.
ClimateTech will see significant growth, focusing on renewable energy, waste reduction, and water conservation, while FoodTech and AgriTech will address food security and sustainability through innovations like plant-based proteins and AI-driven agriculture.
Biotechnology will continue to advance, with gene-editing technologies enabling better treatments for genetic diseases and cancer, and innovations like lab-grown meat and climate-resilient crops shaping a healthier and more sustainable future.
Cybersecurity will remain a top priority as attacks on vital systems increase, requiring smarter AI tools for defense. Lastly, quantum computing will advance, offering breakthroughs in healthcare, climate modeling, and AI, making its impact more tangible in our daily lives.
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 leads in AI talent concentration, as recognized by the Stanford AI Index Report 2024. This includes the third-highest AI skill penetration among women globally. To remain at the forefront, Israel should focus on expanding AI applications beyond its traditional strengths in defense and security, continuing to apply AI to sectors like healthcare, agriculture, and climate tech. Israel must also prioritize international collaboration, forging stronger partnerships with global tech players and scaling Israeli startups in major markets like the U.S. and Europe.
Another key focus should be AI talent development and retention. This includes fostering the next generation of AI researchers, attracting international AI professionals, and ensuring diversity in tech. Additionally, Israel can establish itself as a leader in AI ethics by setting global standards for responsible AI development, including transparency, privacy, and fairness. With these strategies, Israel can continue to lead the charge in the AI revolution, driving both innovation and global collaboration.
Could the global IPO drought end in the coming year?
While 2025 might not see a massive surge in IPOs, there are signs that the global IPO market could start to recover gradually. The IPO drought over the past few years has largely been driven by market volatility, inflation concerns, and rising interest rates. However, with the potential stabilization of global economies and a possible shift in monetary policy, investors might regain confidence in public markets.
From an investor's perspective: will the coming year be better for early-stage startups or more mature companies?
In 2025, I’d guess that early-stage startups, particularly AI-driven solutions in sectors like healthtech, and climate tech, will continue to attract interest from investors. Despite a cautious funding environment, these areas offer high growth potential, and with the right innovation and execution, these startups could still perform well. Lower valuations during uncertain times might make them more appealing to venture capital.
At the same time, more mature companies will likely find it easier to raise funds, especially those with a proven track record. Their established product-market fit and growth will make them more attractive to investors looking for stability, possibly leading to more IPOs and acquisitions.
Overall, both early-stage startups and mature companies will present opportunities, but I think we’ll see more focus on the higher-growth sectors for venture capital, with stable companies attracting more private equity and growth investments.
Did you raise fund money in 2024 for an existing fund or a new one? What are your expectations regarding this matter for 2025?
We raised ICI Fund II in 2024 and are actively raising capital until our final closing in June 2025. Our limited partners comprise U.S. business leaders who recognize the value of Israeli technologies and are committed to fostering their growth in the U.S. market. Fundraising remains a challenge, yet it is instrumental in supporting visionary Israeli founders. We remain optimistic about reaching our fundraising goals in 2025 by continuing to share our vision of supporting groundbreaking Israeli founders.
How many investments did you make in 2024, and how does it compare to previous years?
In 2024, we made five new investments, exceeding the number from the previous year. In addition, we provided follow-on funding to five of our portfolio companies. Looking ahead to 2025, our goal is to make between 5 and 8 new investments.
Provide an example of an intriguing investment you made in 2024. What sets this company apart, or what is distinctive about its sector?
One of our standout investments in 2024 was Buzzy, an AI-powered platform for continuous, real-time mental health monitoring. Buzzy’s autonomous technology eliminates the need for user intervention, utilizing physiological data to provide alerts for stress-related incidents.
What sets Buzzy apart:
- Innovative Technology: Buzzy bridges the gap between healthcare monitoring and consumer-focused mental health tools.
- Impact: It targets healthcare organizations and rehabilitation services, ensuring its solutions address pressing industry needs.
- Market Progress: Buzzy recently finalized a partnership with a leading U.S. healthcare provider, positioning itself for widespread adoption. Furthermore, collaborations with esteemed Israeli institutions are helping validate its clinical efficacy.
This combination of cutting-edge technology, strategic partnerships, and a meaningful mission - positions Buzzy to transform how mental health is proactively monitored and addressed globally.
Two notable companies that you think will thrive in 2025.
Company name: Kando
Sector: Wastewater & Environmental Technology. Leveraging advanced sensors and Generative AI, Kando has developed groundbreaking technologies that enable cities to monitor, manage, and recycle wastewater at scale.
Investment Amount: $30M
Founding Year: 2012
Reasoning Why This Is Their Year: Kando is positioned at the intersection of water conservation and AI-driven environmental sustainability, making it a critical player in addressing one of the world’s most urgent challenges—water scarcity. In 2024, Kando introduced a revolutionary AI assistant for water utilities, enhancing operational efficiency and enabling real-time, data-driven decision-making for water management. This advancement is set to impact millions of people globally across the U.S. and Europe. Kando is not just a company with a compelling solution; it’s a pioneer at the forefront of global water innovation.
Company name: Genda
Sector: Construction Technology. Their solution revolutionizes the construction industry by integrating AI, machine learning, and real-time data to deliver enhanced operational efficiencies across every stage of construction, from planning to execution.
Investment Amount: $10M
Founding Year: 2020
Reasoning Why This Is Their Year: Genda’s unique approach to the construction industry positions it for significant growth in 2025. With the U.S. construction sector benefiting from a post-pandemic construction boom fueled by lower interest rates, Genda is ideally positioned to scale rapidly. Their AI-driven platform is not just about improving efficiency—it's about redefining how construction projects are managed and laying the groundwork for smarter, more sustainable cities. As the market recovers and demand surges, Genda stands poised to become a major player in transforming an industry ripe for disruption.
