Trying to predict which tech companies will break out next year is like trying to find a parking spot for a truck in the heart of Tel Aviv at nine in the morning.
The factors at work are countless: market maturity, team cohesion, timing of the initial investment, budget management, hiring talents, rapid response to emerging trends, and a long list of obstacles, roadblocks, and crises along the way.
Yet, despite the challenges, Israeli high-tech managed to deliver its share of success stories over the past year, particularly in cybersecurity and cloud computing. But when all is said and done, the past year was, above all, defined by survival mode. For the coming year to be truly successful, more local companies will need to break through, gain traction, and ideally, secure lucrative exits.
So, which companies are poised to make it happen? To find out, we brought together a panel of top venture capitalists and senior executives who shared their chosen startups with the biggest breakout potential:
Exodigo: Barrel Kfir, Partner at Dell Technologies Capital:
"Exodigo is redefining how we map the world beneath our feet. The Company has built a unique platform that implements sensors and AI to deliver a complete, highly accurate picture of what lies underground, from infrastructure to natural chambers. The impact is huge: saving construction, infrastructure, and energy companies massive amounts of time, money, and resources. This is a massive sector hungry for innovation, and Exodigo is delivering a true technological breakthrough with immediate real-world applications and measurable value for customers."
Cassidy Bio: Yaniv Golan, Co-Founding Partner at lool ventures:
"Cassidy Bio is building the world's first gene-editing platform which is fully AI-integrated. Instead of the traditional slow, trial-and-error approach, the Company is creating a system that can predict, simulate, and validate genetic modifications at lightning speed, using advanced AI models trained on unique biological datasets. This fusion of biological precision with massive computational power cuts drug development timelines from years to just weeks, opening the door to curing diseases once considered untreatable. The founding team is truly world-class, and the Company is already partnering with leading pharma players."
Juganu: Maayan Shahar, CEO of UST Spark:
"A particularly standout startup I see heading for greatness is Juganu, which has been developing a smart AI-powered platform integrating lighting, cameras, sound, and wireless connectivity. The Company's current solutions focus on smart retail and smart cities, but the technology is equally relevant for digitizing healthcare, advanced manufacturing, and more.
"What impressed me most is their ability to seamlessly connect hardware and software in a way that's elegant, efficient, and, most importantly, cost-effective. In retail, the solution gives brick-and-mortar stores consumer insights previously available only online, while cutting energy consumption by 30% to 70%, all without infringing on privacy or collecting personal data. In smart cities, the same platform delivers municipal Wi-Fi, real-time monitoring, and efficient energy management. Juganu eliminates obstacles that once seemed insurmountable, with a clear business model from day one. To me, that's exactly what makes it a startup with enormous potential, which could become a global market leader in smart retail and smart city technologies."
K2View: Lior Pozin, Co-Founder & CEO of AutoDS:
"Sometimes a seasoned startup just needs the right moment to break out, and I believe K2View's moment has arrived. In an era where AI is breaking growth records, the demand for massive volumes of data to train models has become critical. This Company's platform delivers tremendous value in exactly this context.
"AI models, especially Generative AI, need massive amounts of high-quality data to keep improving. Yet many organizations face severe data shortages or get stuck behind regulatory roadblocks. K2View solves this by generating synthetic data - artificial datasets that perfectly mirror real-world information without any risk of privacy breaches or sensitive data leaks. For example: Banks can train credit-scoring algorithms without ever exposing real customer information; Healthcare companies can build cutting-edge diagnostic systems without compromising patient privacy; Insurers can develop advanced fraud detection models using millions of 'synthetic claims,' all without revealing a single piece of personal data.
"K2View is giving even the most traditionally cautious industries a safe, fast track to embracing AI, empowering organizations worldwide to move forward at a dramatically accelerated pace."
Colugo: Tamir Hershkovitz, VP and Director of Investment Division at Ayalon Insurance & Finance:
"The defense-tech sector, and the drone industry in particular, is experiencing explosive growth, driven by soaring demand for advanced solutions that can deliver immediate, on-the-ground capabilities. One Company we, at Ayalon, see a tremendous future for, is Colugo - a startup that benefits both from its breakthrough technology and from the rapid maturation of the market it serves. Colugo's drone systems are designed for a wide range of applications: security, surveillance, transportation, deliveries and logistics, emergency response, and more. Their solutions save resources, improve mission accuracy, and, most importantly, overcome the industry's biggest challenge - operating in harsh weather conditions – that until now has been a major barrier for these specialized systems. In my opinion, that's what sets Colugo apart from the competition and positions it as a key player with genuine leadership potential in the field."
Terrific: Eric Bentov, Managing Partner at Arieli Group:
"Terrific is a startup that created an innovative platform enabling brands and broadcasters to bring the social media shopping experience directly to their own websites. Instead of relying on platforms like TikTok or Instagram, Terrific enables brands to host live shopping events and create interactive content feeds under their full control.
"For years, brands have depended on external platforms like Instagram and TikTok to drive engagement and sales, but eventually had to relinquish control - over their traffic, their data, and their direct customer relationships - while competing for attention in the endless scroll.
"Terrific accurately solves this pain point. The platform lets companies bring the social experience straight to their own sites, instead of surrendering their audiences to the social media giants. What impresses me most is the platform's simplicity: it transforms static product pages into interactive experiences, enabling brands to engage with their customers at conversion rates ten times higher than the e-commerce norm. I have no doubt that this will be Terrific's breakout year, as it meets a growing demand for brands to strengthen customer relationships and sets a new standard for what commerce and media should look like in today's era."
Grip Insurtech: Alex Snitkovsky, CEO of Commit Software:
"Grip Insurtech solves a real problem the digital insurance market has been waiting for. The gaming and e-sports industries are exploding with rapid growth, but today's traditional insurance solutions do not grasp the unique needs of gamers. Grip not only recognizes this gap but is closing it with a smart, AI-driven platform that delivers real-time, fully automated, and highly accurate insurance coverage. The platform operates with complete independence, never touching users' funds, building trust while enabling seamless integration with existing gaming platforms. This innovative 'Embedded Insurance' approach makes insurance a natural part of the gaming experience, transforming it into something accessible and user-friendly. It is a genuine breakthrough that could rewrite the rules of the game, and with the gaming sector booming, Grip is positioning itself perfectly to ride the wave and capture massive growth potential."
Theator: Talor Sax, Managing Partner at eHealth Ventures:
"Theator is a trailblazing digital health startup specializing in surgical video analysis to improve medical performance. The Company implements artificial intelligence to identify patterns and deliver insights that drive greater precision, safety, and efficiency in the operating room. Its platform is already being used by leading hospitals across the U.S. and holds enormous potential to transform healthcare quality on a global scale. With its unique technology, experienced team, and impressive growth in a rapidly evolving health tech sector, Theator is definitely a company to watch."
Bright Data: Ori Goshen, Co-CEO and Co-Founder at AI21:
"I would endorse Bright Data, a global leader in public web data collection. The Company's technology enables top AI players to access high-quality, real-time public data to strengthen and refine their AI models. As consumers shift from simple keyword searches to more advanced Question Answering and Deep Research tasks, the demand for reliable, real-time public data is set to skyrocket. Bright Data is perfectly positioned as a global leader to meet this growing need."
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