Founded in 2018 and headquartered in Kibbutz Yifat, Beyond Oil is led by co-founder and CEO Yehonatan Or. The company has developed an innovative technology aimed at addressing the health risks associated with reusing frying oil. By maintaining optimal oil quality throughout the frying process, Beyond Oil’s solution reduces costs by up to 50% while simultaneously lowering customer complaints and minimizing carbon footprints.

Beyond Oil’s recent success is attributed in part to its aggressive geographic expansion. The company has entered several key markets, including the U.S., Mexico, Australia, South Africa, India, and the Philippines. A significant milestone was reached at the start of 2025 when Beyond Oil signed a U.S. distribution agreement with Latitude, securing purchase commitments worth $8.3 million for the year.

Further boosting investor confidence, Beyond Oil recently announced a $10.5 million Canadian dollar investment (approximately 26.6 million shekels) from Clal Financial Management. As part of the deal, Beyond Oil issued 3 million stock units to Clal at a price of 3.498 Canadian dollars per unit, with additional options that, if exercised, could bring in another $21 million CAD.

Following this latest investment, Beyond Oil’s market capitalization has reached approximately 276 million Canadian dollars (roughly 700 million shekels). The company has also hinted at plans to upgrade to a more senior stock exchange in Canada or the U.S. within the next six months, a move that could further enhance its market position.

Beyond Oil has gained attention in the U.S. due to the involvement of its president, Laurel Eastman, a former senior advisor to President Donald Trump. Eastman has publicly committed to advocating for regulations that would make Beyond Oil’s technology a mandatory standard in restaurants, schools, and military sites across the U.S.

Image credit: Foodtech. (Photo: Shutterstock)

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At the start of 2023, Israel had 8.22 million internet users, reflecting a penetration rate of 90.3%. Additionally, 7.06 million social media users – 77.5% of the total population – actively engaged in digital platforms, underscoring the nation’s deep-rooted connectivity. Mobile connections surpassed the population, reaching 10.65 million, a staggering 116.9% penetration rate.

These statistics position Israel as a prime market for the next generation of digital transformation, with Apple and Meta vying for consumer allegiance. Apple’s dominance in premium hardware and growing services segment contrast with Meta’s vision of immersive, AI-powered experiences. The outcome of this battle will likely influence how consumers interact with technology in the coming years.

Apple vs. Meta: A Clash of Strategies

Apple’s stronghold in the device market remains unshaken. In its latest quarter, Apple reported $124 billion in revenue, significantly outpacing Meta’s $48 billion. While iPhone sales have plateaued, Apple’s ecosystem – comprising iPads, Macs, and a burgeoning services sector – continues to generate stable growth. Services alone expanded by 14%, demonstrating Apple’s ability to pivot from pure hardware reliance.

Conversely, Meta’s strategy revolves around the metaverse and smart wearables. Despite accumulating nearly $60 billion in losses on Reality Labs over the past four years, Meta founder Mark Zuckerberg envisions a future where AI-driven smart glasses replace traditional smartphones. He predicts that over 3 billion people who wear glasses today could adopt AI-connected eyewear within a decade. If this prediction materializes, it could upend Apple’s dominance in mobile technology.

For Israeli consumers, the Apple-Meta rivalry presents exciting possibilities and potential disruptions. As social media adoption remains high, Meta’s push toward AI-driven, immersive experiences could gain traction, especially among younger demographics. However, Apple’s seamless ecosystem and strong brand loyalty might secure its position as the go-to provider for premium digital experiences.

Should smart glasses gain widespread adoption, as Zuckerberg envisions, the traditional smartphone’s role may diminish. This shift could impact Apple’s revenue model, forcing it to innovate beyond its current offerings. Conversely, if Meta’s metaverse ambitions fail to generate sustainable profits, Apple’s hardware-centric approach will remain dominant.

Israel’s digitally engaged population will certainly embrace the benefits of the two tech giants rivalry. While Meta bets on an AI-driven, immersive future, Apple’s calculated expansion into services and wearables keeps it ahead in profitability and consumer trust. As Israeli consumers continue to embrace digital innovation, the impact of this tech battle will be felt across industries, from e-commerce to social interaction and beyond.

Ultimately, whether AI-driven glasses replace smartphones or remain a niche product will depend on consumer behaviour and technological advancements. What is certain is that Apple and Meta’s competition will continue to drive digital transformation in Israel and beyond, making the next decade a defining period for global and local digital landscapes.

Image credit: 3D printed Meta and Facebook logos (REUTERS)

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In December, DeepSeek unveiled its groundbreaking language model, V3, which is open-source and freely available. What sets this achievement apart is its affordability: the model was built in just two months at a cost of less than $6 million. By contrast, major players such as Google and Anthropic have spent hundreds of millions of dollars to develop and train their models, with future investments projected in the billions.

DeepSeek achieved this feat using only 2,000 Nvidia H800 chips, significantly fewer than the supercomputers employed by competitors, which often require over 16,000 chips. This innovative approach has not only reduced costs but also showcased how AI development can thrive without the most advanced and expensive hardware.

DeepSeek’s V3 model has proven itself in several benchmark tests, where it outperformed Meta’s Llama 3.1, OpenAI’s GPT-4o, and Anthropic’s Claude 3.5 in solving complex problems, including mathematics and coding challenges. These results have challenged the long-standing belief that the US holds an unassailable lead in artificial intelligence.

Microsoft CEO Satya Nadella acknowledged the significance of this development, stating, “We need to take the developments from China very, very seriously.” This sentiment reflects a growing awareness of the competitive edge that Chinese companies like DeepSeek are gaining in the global AI race.

The rise of DeepSeek is particularly noteworthy in the context of US-imposed export restrictions on high-powered chips to China. These restrictions, intended to curb China’s technological progress, appear to have had the opposite effect. By necessity, Chinese developers like DeepSeek have innovated around these limitations, finding ways to achieve high performance with less advanced technology.

This adaptability highlights China’s resourcefulness and its ability to circumvent barriers that were expected to hinder its AI advancements. The success of DeepSeek underscores that necessity often drives innovation, a lesson that Silicon Valley is now grappling with as it reevaluates its assumptions about China’s technological capabilities.

While details about DeepSeek remain sparse, reports suggest that the company was founded by Liang Wenfeng and originated from High-Flyer Quant, a Chinese hedge fund managing $8 billion in assets. The startup’s achievements have not only put it on the map but have also sparked excitement and intrigue across Silicon Valley and the global AI community.

The unveiling of DeepSeek’s V3 model has had immediate ripple effects. On Monday morning, futures on Wall Street showed sharp declines, with the Nasdaq dropping by 2% and Nvidia shares falling by 5%. This comes on top of a 3% decline in Nvidia’s stock last Friday. The disruption caused by DeepSeek has introduced new uncertainties in the market, further emphasizing the global impact of the startup’s achievements.

Image credit: FT montage/Getty/Bloomberg

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Stripe, valued at $70 billion following a recent private share buyback, is among the world’s most valuable private tech companies and a strong contender for an IPO. Collison’s announcement drew an outpouring of reactions from Israeli entrepreneurs and investors, including Omri Caspi, a former NBA player turned venture fund partner, as well as prominent figures such as Omer Partchik (CEO of Enido), Tomer London (co-founder of Gusto), and Veren Shir (founder of Nexar). Sean Maguire, a partner at Sequoia Capital, another key Stripe investor with deep ties to Israel, also engaged with the post.

However, Collison’s tweet also attracted polarized reactions, with over 1,000 comments including both congratulatory messages and a wave of anti-Semitic and anti-Israel rhetoric.

Collison’s visit has sparked speculation about Stripe’s potential plans for Israel, a market it has yet to officially enter. Stripe currently does not integrate with the Israeli banking system, making it impossible to process payments into local bank accounts. This is likely due to the unique technological and regulatory challenges of the Israeli financial ecosystem.

One possibility is that Stripe may be preparing to apply for a clearing license with the Bank of Israel, a move that would enable it to establish operations in the local market. Such an entry would position Stripe alongside competitors like Israel-based Rapyd, a leader in digital payment solutions in Asia and the Middle East, and global players like PayPal, which already maintains a development centre in Israel.

Another potential avenue is a strategic acquisition or the establishment of a research and development center in Israel. This would bolster Stripe’s technological capabilities while creating a foothold in a nation known for its fintech innovation. Israeli companies such as Riskified and Forter, which specialize in transaction risk management, could also provide Stripe with complementary expertise.

Stripe’s private share buyback signals strong confidence from investors, including Sequoia, Elon Musk, and Peter Thiel, who are known for their pro-Israel stances. As the company gears up for its anticipated IPO, a move into Israel could represent both a strategic expansion and a deeper integration into the global fintech landscape.

For now, Collison’s Tel Aviv visit remains a focal point for industry observers, as his presence hints at potential partnerships or initiatives that could potentially reshape the Israeli payments ecosystem.

Image credit: Key Executives (thekeyexecutives.com)

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Founded in 2014 by Avi Kashtan and Elad Lavi, with Sharon Wagner as CEO, Cybersixgill specializes in automated cyber threat intelligence collection. The company’s platform scans closed online forums and social media to identify and profile potential cyber threats. By 2023, Cybersixgill had raised about $50 million in funding, including a $35 million round led by pension and provident funds along with the REV Fund. Elron held a 23% stake in the company after investing $12 million.

Despite reaching revenues in the tens of millions, Cybersixgill had faced challenges, including a workforce reduction in May 2023 after the loss of a key client. Today, it employs around 80 people, with 65 based in Israel. This acquisition marks Sharon Wagner’s second successful exit with Elron, following the sale of Claudine to Microsoft seven years ago.

Bitsight, headquartered in the U.S. and employing around 800 people, plans to retain Cybersixgill’s research and development operations in Israel. With annual revenues reported at approximately $220 million, Bitsight is also preparing for an IPO on Nasdaq in the coming years. Following the acquisition, Cybersixgill’s workforce will continue in their roles under the new ownership.

Image source: Freepik.com

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While the company did not disclose its post-investment valuation, industry insiders estimate that it has now reached $110 million. XTEND was also recently recognized as one of the top 10 most promising Israeli startups by nearly 70 investors in a list published by Globes.

What Sets XTEND Apart?

XTEND’s drones stand out due to their intuitive control interface, which features a joystick and reality glasses that provide a live view from the drone’s perspective. This user-friendly design allows soldiers, familiar with video games, to easily operate the drones. Instead of maneuvering the drone manually, operators can simply point to a target on the screen, and the drone autonomously flies to that location, navigating through buildings, tunnels, or carrying payloads.

Photo credit: XTEND executives (Kadia Levy)

The drones are also modular and can work with multiple operating systems simultaneously, operate without GPS, and connect via fiber optics. This flexibility has made them a valuable asset for both military and civilian applications.

New Investors and Diverse Applications

Clal-Tech, Len Blavatnik’s technology investment fund, led the new funding round alongside an undisclosed major Japanese financial institution. Clal-Tech has previously invested in notable tech companies like Verbit, Papaya Global, and Iron Source.

Existing investors, including the Chartered Fund, a Japanese-Singaporean investment company founded by Israeli Eyal Agamoni, also participated in the round.

XTEND’s drones have proven essential in Gaza, where four different models support various tasks such as dropping grenades, scanning tunnels, and incapacitating terrorists. Additionally, the drones help save the lives of soldiers and military dogs by scouting dangerous areas and absorbing enemy fire.

Beyond defense, XTEND’s dual-use model enables it to serve civilian markets like oil and gas. British Petroleum and Hyundai use XTEND drones to inspect facilities for potential faults and corrosion.

Building an Operating System for Robots

XTEND is now leveraging its experience from the Gaza conflict to develop an “operating system for robots.” Moving beyond just hardware, the company aims to be the software backbone for a variety of military and civilian robots. Its Linux-based operating system draws inspiration from Android, which dominates the smartphone market.

To meet rising demand, XTEND is considering establishing a production line in Israel and may go public in Japan or on the Nasdaq in the future.

“Before the war, it was difficult to raise money, and suddenly everything opened up,” said Aviv Shapira, CEO and founder of XTEND. “The funding will help us manufacture drones at scale, establish partnerships with Japanese electronics companies, and further develop our operating system.”

Main image: XTEND Griffon drone (XTEND website).

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This acquisition marks a lucrative exit for Run:ai’s investors, potentially offering substantial returns, particularly for early backers. Investors such as S. S Capital and TLV stand to gain returns several times over on their initial investments, with Ace Capital potentially even recouping its entire fund. Insight Partners, another investor in Run:ai, is also poised to reap significant rewards from this exit.

Photo: Run:ai co-founders Omri Geller and Ronen Dar. (Photo: Eliran Rubin)

The entrepreneurial journey of Run:ai’s founders, Omri Geller and Ronan Der, began during their doctoral studies in electrical engineering at Tel Aviv University. Their mutual passion for artificial intelligence led them to join forces and embark on a mission to harness the transformative potential of AI technology. Recognizing the burgeoning opportunities in the AI space, they focused their efforts on developing tools to optimize AI infrastructure, laying the foundation for what would become Run:ai.

Run:ai’s platform offers AI developers a streamlined interface for managing shared computing infrastructures, facilitating faster access to complex AI workloads, such as model training operations. One of the platform’s standout features is its ability to unite GPUs and distribute their processing power across various tasks, enhancing efficiency and performance. This capability aligns seamlessly with Nvidia’s vision of advancing AI technologies and integrating them into its existing offerings.

Nvidia plans to integrate Run:ai’s technology into its AI platform, DGX Cloud, catering to large cloud providers like Microsoft Azure and Amazon AWS. By incorporating Run:ai’s capabilities, Nvidia aims to enhance the efficiency and accessibility of AI infrastructure for organizations engaged in AI model training and deployment.

Image credit: Nvidia

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This achievement stands unparalleled globally. For instance, in the Russia-Ukraine conflict, where Moscow employs drones akin to those used against Israel, Kyiv celebrated intercepting 40 drones. Yet, this pales in comparison to the scale of the Iranian assault on Israel, both in sheer numbers and the breadth of engagement.

A complex web of defence mechanisms, including the air defence forces of the United States, Great Britain, France, and Jordan, collaborated in the interception efforts. However, the lion’s share of interceptions was executed through Israel’s sophisticated multi-layered air defence system. This system encompasses the Arrow 3 for intercepting ballistic missiles beyond the atmosphere, Arrow 2 for within the atmosphere, the David’s Sling for advanced short- and medium-range threats, and Rafael’s Iron Dome for short-range threats.

At the forefront of this defence matrix are the Arrow 3 and Arrow 2 systems developed by Israel Aerospace Industries (IAI). These systems boast advanced capabilities, with Arrow 3 relying solely on kinetic energy to destroy targets, thanks to its exceptional manoeuvrability and cutting-edge electro-optical sensors. Command and control systems developed by Elisra, a subsidiary of the Elbit Group, serve as the operational hub for Arrow 3, Arrow 2, and David’s Sling systems, orchestrating the interception process with precision.

Tomer, a security company, plays a crucial role in developing and manufacturing Arrow missile engines, ensuring the reliability and efficiency of these defence systems. The recent sale of the Arrow 3 system to Germany underscores the global interest in Israeli defence technology, prompting investments to enhance infrastructure and production capacity.

While the Arrow systems have demonstrated effectiveness against previous threats, the challenge posed by Iranian ballistic missiles lies not only in their payload but also in their staggering speeds. The Arrow systems’ “Hit to Kill” approach, aiming for metal-to-metal interception, faces the formidable task of neutralizing projectiles moving at velocities of up to 6,000 meters per second.

Boaz Levy, CEO of IAI, lauds the culmination of three decades of meticulous development and collaboration, emphasizing the readiness of Israeli defence forces in thwarting such attacks. The success of the Arrow systems in intercepting a barrage of ballistic missiles underscores their unmatched efficacy.

Beyond the Arrow systems, Israel’s air defence architecture includes the David’s Sling system, designed to intercept short- and medium-range threats, and the Iron Dome, renowned for its effectiveness against short range rocket attacks. Recent additions by Rafael like the “Shield Dome”, a maritime variant of the Iron Dome, further bolster Israel’s defence capabilities, safeguarding against a spectrum of threats in both land and sea domains.

Investments in air defence remain a priority for Israel, underscored by ongoing cooperation with the United States through joint innovation initiatives. This partnership not only ensures financial support but also fosters continuous advancements in defence technology, enhancing Israel’s resilience against evolving threats.

Photo credit: Gil Cohen-Magen / AFP Arrow 3 (right) missile defence systems at Hatzor Israeli Air Force Base.

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One standout investment highlighted in the report is in Next Insurance, a leading fintech company, which attracted over a quarter of a billion dollars from two foreign funds. This investment exemplifies the continued allure of Israeli tech startups on the global stage.

Furthermore, mergers and acquisitions in the high-tech industry have totalled $3.7 billion since the onset of the conflict. Notable acquisitions include Palo Alto’s purchase of cyber companies such as Talon Security, the developer of a corporate browser, and Dig Security, an innovative provider of data security posture management.

The healthcare technology sector has also seen significant activity, with companies like CartiHeal, specializing in innovative medical implants, being acquired for substantial sums, adding to the overall buoyancy of the Israeli tech landscape.

The report also highlights the establishment of over 20 new venture capital funds since the outbreak of the war, raising a collective $2 billion. These funds, including Iron Nation and Google Support Fund, have been instrumental in addressing the financing needs of startups facing challenges amidst the conflict.

Despite these positive indicators, the tech industry has not been immune to the broader impacts of the war. A notable decrease in manpower has been observed, with approximately 15% of tech workers being called up for reserve duty. Additionally, short-term funding gaps have affected smaller startups disproportionately.

However, there are experts who hold a contrarian view and remain optimistic about the future of Israeli technology, predicting a surge of innovation post-war, envisioning a tech boom that will unlock new opportunities for Israeli companies on the global stage.

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According to the findings, 56% of leading private investors in Israel and 55% of participating investment funds halted pre-seed investments during this period. Pre-seed investments, typically the initial capital injected into startup ventures, were defined in the report as investments totaling up to one and a half million dollars.

The report delves into the challenges of tracking pre-seed transactions, citing their small-scale nature and tendency to fly under the radar of research bodies and media outlets. Amit Shechter, part of Fusion Fund’s investment team and lead author of the report, explains that these transactions are inherently difficult to measure and document.

Beyond the decrease in transaction volume, the report also highlights a reduction in transaction sizes. Over half (57%) of angel investments in the past year were below $100,000 per transaction, with 35% investing less than $5,000 per transaction. Moreover, a significant portion of investors refrained from diversifying their portfolios, with 65% of angels investing in fewer than two startups and 45% of funds investing in only 2 to 4 companies over the same period.

An intriguing trend noted in the report is the preference for registering new companies in the US, particularly in Delaware, amidst political and security instability in Israel. Approximately 80% of the newly established companies included in the report opted for American registration.

Interestingly, the report highlights a similarity between Israel and the US regarding investment mechanisms, with around 80% of transactions utilizing the SAFE (Simple Agreement for Future Equity) mechanism, which defers the valuation of the startup until a later stage.

In light of these findings, Shechter emphasizes the importance for entrepreneurs to adopt leaner strategies, advising startups to raise initial rounds in smaller portions from strategic investors. He advocates for a shift away from traditional seed rounds, urging companies to maintain lean operations with a focus on producing tangible proof of feasibility.

Fusion Fund, established in 2017 by Guy Katsovitch and Yair Vardi, has played a significant role in the Israeli startup landscape, investing in over 110 companies across 13 rounds. Notable investments include Agora, DigitalOwl, Base.ai, Innplay Labs, and Hoopo Asset Intelligence, among others.

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