The authors, from Remagine Ventures, share their investment journey in the generative AI space, starting with their first investment in Hour One in 2019. They have since invested in six more startups in this field, particularly those intersecting with entertainment and gaming. They believe that large companies will be built in this space and see promising opportunities in vertical SaaS, task-oriented models, and tooling for low-code/no-code gen AI-based applications.
Key takeaways:
- The generative AI space has seen significant growth globally and in Israel, with new foundational models, open source LLMs, and new companies emerging. In 2023, generative AI startups raised $16 billion globally.
- The number of Israeli generative AI startups has more than doubled in the past five months, from 67 to 144. These startups have raised a total of $2.3 billion, a 2.5x increase compared to April of the same year.
- Remagine Ventures has invested in several generative AI startups, particularly those at the intersection of entertainment and gaming. They believe Israeli founders have the necessary talent, multidisciplinarity, and culture to succeed in the generative AI space.
- Despite generative AI reaching the peak of the hype cycle for emerging technologies, Remagine Ventures believes that LLMs and generative AI technologies have the potential to change entire verticals and that large companies will be built in this space.