2025 VC SurveyFounders “must embrace advanced technologies and remain adaptable” in 2025, says Earth & Beyond Ventures
2025 VC Survey
Founders “must embrace advanced technologies and remain adaptable” in 2025, says Earth & Beyond Ventures
The team shared insights for CTech’s 2025 VC Survey about what founders and their teams can expect in the year ahead.
“From our perspective as a VC, emerging sectors like quantum computing and advanced materials are poised for significant growth, driving innovation in industries such as energy, manufacturing, robotics, and more,” says the team at Earth & Beyond Ventures. “As early-stage investors, we actively collaborate with universities to bridge the gap between academia and industry. With Israel’s strong infrastructure, we believe 2025 will be a pivotal year for increasing the transformation of cutting-edge research into successful startups.”
The firm was the latest guest for CTech’s 2025 VC Survey, where prominent investors share insights from the past year and predictions for the months ahead. The VC, which invests at the early stage in Israeli DeepTech and SpaceTech from concept to creation, gave some words of warning to companies.
“AI will continue to expand, accelerating transformative advances across multiple fields,” the team added. “Conversely, software startups lacking strong technological innovation and easily replaceable by AI are likely to face challenges. For founders, the priority must be to embrace advanced technologies, and remain adaptable.”
You can read the full interview below.
Fund ID
Name of fund/funds: Earth & Beyond Ventures
Total sum of the fund: $70M
Partners: Doron Zauer, Daniel Recanati, Israel Biran, Zack Fagan
Notable/select portfolio companies (active): Elssway, MNDL Bio, Quamcore, Spiral Photonics, and many more.
2024 is almost over. How can you summarize it in terms of the Israeli high-tech industry?
2024 has been a challenging year for the Israeli hi-tech industry, marked by geopolitical and economic complexities. Yet, it has also been a testament to the resilience and strength of this sector. Despite the war and global uncertainties, Israeli hi-tech achieved a peak year for exits, highlighting its ability to innovate and deliver value even under pressure. This resilience underscores the critical role hi-tech plays in driving Israel’s economy and global reputation as a leader in innovation.
As we reflect on the past year, it’s clear that Israeli hi-tech’s impact extends beyond financial success—it represents the spirit of creativity and determination that drives progress and growth for the nation and the world.
Looking ahead to 2025 - What challenges and opportunities await the Israeli sector in the coming year, and how are you, as investors, preparing for them?
Israeli hi-tech is showing signs of recovery from the challenges that began in 2023, aligning with global upward trends like those in the U.S. The ecosystem's resilience and reputation as a global innovation leader remain strong. However, challenges such as geopolitical instability, talent retention, tighter funding, and barriers to launching new companies persist.
As early-stage investors, we actively work with our portfolio companies to help them build strong, solid business infrastructures, enabling founders to focus on technological development while preparing them for the challenges ahead. Recognizing the broader ecosystem's needs and the challenges of building new startups, we’ve launched a dedicated DeepTech CEO program to empower emerging CEOs to drive the growth of new DeepTech startups. We believe investors should elevate their role beyond simply providing direct funding, by actively supporting both portfolio companies and the broader ecosystem to create lasting, meaningful impact.
What are the three most important things the Israeli government should do today to accelerate the high-tech engine in the coming year?
Accelerating Israel’s hi-tech growth requires targeted actions to strengthen its global leadership and resilience. Here are some suggestions from our perspective:
- Attract Global Investors and Corporates: Offer tax incentives, streamline regulations, and launch programs to attract multinational corporations and VCs to invest in Israel.
- Invest in Talent Development: Collaborate with universities and tech hubs on training programs for science and technology skills, while promoting diversity in the tech sector.
- Facilitate Global Market Entry: Develop initiatives to connect Israeli startups with international markets, reduce regulatory barriers, and provide networking opportunities.
It is important to acknowledge the Israel Innovation Authority’s significant role, especially during the war. Their impactful initiatives have provided much-needed stability and support, reinforcing the ecosystem’s strength and setting the stage for future growth.
Are there new sectors you see as relevant? Are there any fields you anticipate will weaken significantly in the coming year?
From our perspective as a VC, emerging sectors like quantum computing and advanced materials are poised for significant growth, driving innovation in industries such as energy, manufacturing, robotics, and more. As early-stage investors, we actively collaborate with universities to bridge the gap between academia and industry. With Israel’s strong infrastructure, we believe 2025 will be a pivotal year for increasing the transformation of cutting-edge research into successful startups.
Of course, AI will continue to expand, accelerating transformative advances across multiple fields. Conversely, software startups lacking strong technological innovation and easily replaceable by AI are likely to face challenges. For founders, the priority must be to embrace advanced technologies, and remain adaptable.
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?
We believe that Israel is an integral part of the global AI revolution. A recent report by SNC highlights that AI startups now constitute 30% of Israel’s tech landscape, account for 40% of funding rounds, and secure 47% of total investments. Despite a surge in U.S. AI funding, driven by high-profile deals, Israel's AI startup activity remains two to four times denser than in the U.S. or Europe, underscoring the unmatched strength of its ecosystem. To maintain and expand its global leadership, Israel should focus on scaling its AI capabilities while also leading in the development of AI infrastructure.
Could the global IPO drought end in the coming year?
The global IPO slowdown stems from high interest rates, market volatility, and geopolitical tensions. Signs of hope, like easing inflation and a softer U.S. interest rate stance, offer cautious optimism for 2025, though uncertainties remain.
How will new American leadership affect the global high-tech industry or economy? And where does this place Israel and its entrepreneurs?
President Trump’s pro-business policies—shaped by advisors like Elon Musk—could benefit U.S. startups through tax cuts, deregulation, and incentives for domestic manufacturing and R&D, boosting growth in tech, energy, and infrastructure. A business-friendly environment might improve investor confidence, though stricter immigration policies and trade tensions could limit talent access and raise supply chain costs, depending on the industry.
For Israeli startups, these policies bring both opportunities and risks. Disruptions in U.S. supply chains could create openings for Israeli companies to step in or collaborate with American firms. However, potential tariffs and trade restrictions may increase costs and create barriers to entry, requiring startups to carefully navigate the shifting landscape.
From an investor's perspective: will the coming year be better for early-stage startups or more mature companies?
While our focus is on early-stage companies, we believe the coming year offers opportunities for both early and mature businesses, depending on the focus. Early-stage companies may find it harder to raise funds, but strong startups will continue to be attractive and competitive investments. Mature companies, with steady revenue streams, appeal to risk-averse investors but may encounter slower growth and market challenges. Investors will likely balance both, supporting high-potential startups while helping mature companies scale globally.
Did you raise fund money in 2024 for an existing fund or a new one? What are your expectations regarding this matter for 2025?
In 2024 we did some extra fundraising for our current fund, which was successful despite the challenging fundraising environment driven by the geopolitical situation in Israel. It was a tough year, but we were pleasantly surprised by the resilience and enthusiasm of investors who remain committed to supporting innovation in Israel. Looking ahead to 2025, the outlook will largely depend on how quickly stability returns to Israel and the broader Middle East, but we are confident that we provide investors with a unique value proposition. While the uncertainty presents challenges, it’s clear that there is still a strong belief in the long-term potential of the Israeli tech ecosystem.
How many investments did you make in 2024, and how does it compare to previous years?
In 2024, we made six investments, an increase from four in the previous year. This growth reflects our dedication to identifying and supporting high-potential startups, even amid challenging economic and geopolitical conditions. As DeepTech investors operating at very early and high-risk stages, we successfully expanded our portfolio while upholding a rigorous selection process.
Provide an example of an intriguing investment you made in 2024. What sets this company apart, or what is distinctive about its sector?
We’ll share an update very soon! Unfortunately, this investment is still under the radar, so we can’t share the details yet.
Two notable companies that you think will thrive in 2025.
Company Name: MNDL Bio
Sector + description: MNDL Bio operates at the intersection of Biotech and Deeptech, specializing in Synthetic Biology and Bioconvergence. Their advanced AI platform, built on years of research, optimizes the design of genetic instructions to help SynBio companies produce valuable proteins more efficiently in living cells. By eliminating the traditional trial-and-error approach, MNDL's technology accelerates development timelines, reduces costs, and enhances protein yields. This empowers companies in pharma, foodtech, and biotech to bring innovative products to market faster and more affordably.
Investment amount + total: $2M
Founding Year: 2023
Reasoning why this is their year: Heading into 2025, global challenges like population growth, food security, and healthcare access intensify, the demand for innovative biotech solutions is surging. Industries like pharmaceuticals, food tech, and synthetic biology need efficient, scalable tools—but many lack the expertise and data to engineer genetic sequences effectively. Enter MNDL Bio: their AI-driven platform accelerates product development, cuts costs, and boosts productivity. At the intersection of AI and biotech, MNDL is uniquely positioned to lead the next wave of innovation, empowering companies to meet market demands in a rapidly evolving landscape.
Company Name: Elssway - Just Drive!
Sector + description: Electrification, Mobility, and Smart Cities. Elssway provides seamless and accessible charging for electric mobility fleets. Charge anxiety is holding back EV adoption. Utility companies and charging providers face huge challenges in meeting the demand for charging in a cost-efficient way. Fast chargers have high utilization but are too expensive to deploy across large parking lots. Elssway's wireless transmission and distribution technology enables access to chargers across entire parking lots, keeping costs low. Users benefit from the greater availability of charging stations, along with the ease of cable-free charging. Utility companies see reduced costs due to flattened demand, and charge point operators, for their part, gain increased margins and greater profitability.
Investment amount + total: $1.4M
Founding Year: 2023
Reasoning why this is their year: City electrification is key to meeting sustainability and net-zero goals. Charging infrastructure complexity is holding back EV adoption, and Elssway is positioned to overcome these obstacles, enabling widespread availability and efficiency. The technology supports cost-effective future upgrades, which is crucial as demand is expected to increase tenfold over the next decade. By allowing EV owners to “Just Drive” effortlessly, Elssway aligns perfectly with 2025's global push toward greener, smarter cities and more efficient energy use. That drives sustainability and improves the user experience, allowing EV owners to “Just Drive” effortlessly.
