Today, I’m thrilled to announce the launch of Aleph AI Team (AI-TEAM), a new initiative designed to help 2 or 3-person founding teams build transformative AI companies from the ground up. At Aleph, we’ve always believed in the power of domain expertise, unique data, and thoughtful distribution strategies. In a world where AI engines and foundational models are rapidly commoditizing, our view is that genuine long-term value lies at the intersection of these pillars.
We are also seeing way too many AI meteors that have insufficient moats. They grow quickly but are not defensible.
We are offering up to a $3,000,000 pre-seed investment (on a standard capped SAFE) to ambitious technical teams who want to move fast and build something remarkable and transformative. Our aim is clear: get from zero to $10 million in revenue within 18 months but at the same time to build a real moat. Contrary to popular wisdom on X, we think it takes up-front capital to build a moat in the AI era and it is actually harder to bootstrap. It is easy to bootstrap ephemeral distribution and revenue growth but harder to secure data and build a true distribution advantage.
We have a particular interest in AI-enabled marketplaces with non-SaaS business models and in founders with unique data advantages. We have already invested in 3 AI-enabled marketplace businesses where the AI has significantly reduced the communication, coordination and work overhead of running the marketplace and delivering the product.
We are also interested in businesses where AI and AI-enabled robotics give you an advantage where continuous work accelerates not just productivity but also the innovation cycles. Laboratories, chemical innovation and semiconductor manufacturing are, perhaps, examples of that.
It’s an aggressive goal, but we believe that with the right focus, unique insights, and network, it’s achievable. We have the network, and we believe we have some unique insights as well. We think you can change the world for the better with AI, and we can build the fastest growing and most defensible AI companies out of Israel. Do not bring us run-of-the-mill AI features. Bring us something different, because, as you know, Aleph’s motto is “Different is better than better.”
Email us at aiteam@aleph.vc
(longer version below)
Over the past year, we’ve all witnessed the meteoric rise of new AI tools and companies, many of which have made headlines for disrupting traditional industries. From generative text models to specialized vision systems, the AI gold rush is in full swing. We are hell-bent on helping Israeli entrepreneurs catch up and get ahead of the world.
At Aleph, we were very early to AI, investing a decade ago in: Lemonade (NYSE $LMND) to transform insurance using bots, not brokers; Windward, recently acquired after going public in London, which transformed Maritime with AI; and Nexar, which has the second largest road and real-world video and telematics data set after Tesla, and very unique distribution. All of these had early investments.
In our view, the real competitive advantages will not come from simply building the “best” model. Instead, advantages will be carved out by those, like Windward, Lemonade and Nexar, who effectively harness proprietary or specialized datasets, and by those who rapidly iterate on product-market fit with superior go-to-market strategies. We also believe that the intersection of AI and the physical sciences (Biology, Chemistry, Physics and Materials) is a great opportunity for Israeli founders.
This aligns with Aleph’s broader thesis: AI engines will become a commodity, but unique data and distribution strategy are true moats. GPT wrappers are not wrappers, but rather competitive advantages consisting of data and distribution. We’ve Tweeted, released founder videos and spoken about this before, referencing how early success stories in AI have often emerged from founders who deeply understood their customers’ pain points, owned critical data assets, and iterated distribution at lightning speed. Our AI-TEAM program is designed to put these insights into action and create reinforced learning among the teams. We also think that atoms will also be easier to monetize than bits.
- Deep AI Proficiency
We want teams who live and breathe AI — people who have worked with cutting-edge models, published relevant research, or built AI products at scale in the military or civilian life. We believe that the fastest path to meaningful breakthroughs comes from individuals who understand the technology inside out. - A Unique Data Angle
Having exclusive access to a dataset or a unique mechanism for data acquisition is critical. Whether it’s domain expertise in healthcare, finance, cybersecurity, retail, chemistry or another industry, we want to see how your data or domain understanding sets you apart. We are open and ready to also transform old stodgy industries, and we are market-geography agnostic. - Agile Teams
This is a pre-seed investment aimed at teams of two. We believe small, focused teams can move with unparalleled speed, and we want to foster a tight-knit environment where decisions are made quickly, pivots happen efficiently, and learning is constant. - Distribution Thesis
How do you plan to reach and serve your customers at scale? Over the years, Aleph has seen that distribution can make or break a startup, especially in AI. We’re looking for teams that have a clear blueprint for growth — whether that’s leveraging developer communities, building strategic partnerships, going direct to customers, self service, or tapping into an underserved market segment.
- Up to $3,000,000 Pre-Seed Investment on a Standard Capped CLA (Convertible Loan Agreement)
We want to get you started on the right foot, with the capital needed to hire initial team members, build an MVP and an initial moat, gather more data and test the market. We can help you set up your company. - Space at Aleph & Great Coffee
We’ll provide office space so that you can focus on execution. Learn from others moving at breakneck speed and reinforce the learning from peers. And yes, our coffee and location in Tel Aviv is fantastic! - Mentorship & Network
Aleph has invested in numerous AI startups in the past, and we’ll open up our network of partners, founders, and domain experts. You’ll have direct access to our Ampliphy platform to recruit talent and access expertise and experienced operators who can help you navigate regulatory hurdles, refine your product, or land your first customers.
Strategic Guidance
We’re not just here to write checks. We’re here to help you refine your product strategy, identify the most lucrative verticals, and make those first key hires. You’ll benefit from Aleph’s experience, plus the wisdom we’ve gained by working with innovative AI teams across various industries and our connections to the foundation model companies. We have an AI expert in house who has already been working with our portfolio companies.
We’re actively seeking applications starting now. If you’re interested, email aiteam@aleph.vc. Let’s build the next wave of AI companies together, headquartered out of Tel Aviv. If you live abroad and are very talented, we are certainly open to relocating you. We think Tel Aviv is going to be Mecca in the coming years and are excited to build bigger and better. And yes, the coffee is a lot better in Tel Aviv than in New York or Silicon Valley, as are the beaches and talent.
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