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Introduction: A New Era for Venture Capital
The rise of artificial intelligence is rapidly transforming nearly every facet of the venture capital (VC) industry—from deal sourcing to due diligence, from technical evaluation to market trend analysis. Nowhere is this shift more evident than in tech-forward hubs like New York City, where Israeli startups are gaining increasing traction. Guy Franklin, Founder and Managing Partner of Israeli Mapped in NY Ventures, offers a rare inside look at how AI is shaping VC operations and opportunities in real time. His firm, which focuses on seed to Series B investments in sectors like AI, cybersecurity, healthcare, and enterprise software, leverages AI to refine strategy, increase efficiency, and identify high-potential startups earlier than ever before.
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Guy Franklin, who leads the VC fund Israeli Mapped in NY, participated in CTech’s “VC AI Survey” and shared how AI has significantly enhanced the fund’s operational efficiency. AI is particularly useful in areas such as deal sourcing, due diligence, and market analysis. Franklin noted that he uses AI-driven tools to evaluate the technical capabilities of startups and to identify emerging market trends. His firm focuses heavily on mapping the Israeli tech ecosystem in New York, a city quickly becoming a global AI powerhouse due to the influence of OpenAI and the influx of AI startups.
Israeli Mapped in NY was founded in 2021 and invests in AI, cybersecurity, healthcare, and enterprise software from seed to Series B stages. Franklin rated AI’s impact on his fund as an 8 out of 10, citing faster and more insightful decision-making while emphasizing that human judgment remains essential.
He shared details of two significant AI-related exits: Talon Cyber Security, which developed an enterprise-grade ChatGPT assistant and was acquired by Palo Alto Networks; and Gem Security, acquired by Wiz, which used AI in real-time cloud detection. Franklin noted that evaluating AI startups requires deeper technical validation and an understanding of data moats. KPIs include model accuracy, inference costs, update frequency, third-party dependencies, and real-world utility.
Valuations of early-stage AI startups focus more on the strength of the team, data advantages, and unique intellectual property, especially in cases where revenue is minimal. Risks include compute costs, platform dependency, regulatory changes, IP issues, and model explainability.
Franklin’s AI investment focus lies in applied AI for productivity and security, with an emphasis on cybersecurity, DevOps agents, and vertical NLP solutions. He highlighted transformative applications in law, finance, logistics, and healthcare. As for Israeli startups, he sees strong exit potential in LLM security, AI infrastructure, and hybrid models. However, gaps remain in AI applications for biotech, industrial automation, and consumer sectors. He is actively seeking Israeli founders who can bridge these gaps, especially those aiming to scale in the New York AI ecosystem.
What Undercode Say:
AI is no longer just a tool—it’s becoming the foundational fabric of how modern VC funds operate. What Guy Franklin outlines is a playbook for 21st-century venture capital, especially when dealing with deep-tech startups. The impact of AI on operational efficiency is evident across multiple domains. From automating the scouting process to interpreting complex technical data during diligence, AI is cutting down on weeks of manual labor.
Franklin’s use of AI for mapping Israeli tech activity in NYC is a strategic masterstroke. By doing this, he’s not just scouting better deals—he’s actively shaping the ecosystem. That’s a far more proactive stance than traditional VC models, which tend to be more reactive and founder-driven. With NYC emerging as a premier hub for applied AI thanks to the gravitational pull of OpenAI and enterprise-ready infrastructure, this approach helps position Israeli founders at the heart of global innovation.
Another interesting dimension is Franklin’s emphasis on metrics beyond revenue. In the traditional world, monthly recurring revenue (MRR) and user growth are king. But in the AI domain, it’s about inference costs, model updates, dependency risks, and data pipelines. These reflect a new breed of investor acumen, one that deeply understands the inner workings of AI and can translate them into business outcomes.
The financial risks he outlines are also worth underlining. High compute costs, reliance on external platforms like Nvidia and OpenAI, and unpredictable regulation are not just footnotes—they’re existential threats to AI startups. For founders and investors alike, the challenge is to build with resilience and optionality. That means proprietary infrastructure, agile data governance, and diversified model strategies.
Finally, Franklin’s focus on underrepresented AI segments is a call to action. Biotech, industrial automation, and consumer AI are ripe for innovation—but remain relatively untapped in Israel’s AI ecosystem. As Israeli founders gain access to NYC’s enterprise clients and capital pools, these areas could represent the next wave of billion-dollar exits.
The bottom line? AI has fundamentally changed how VC funds like Israeli Mapped in NY operate—from sourcing deals to scaling startups. The firms that win in this new landscape will be those that can seamlessly blend technical rigor with strategic vision—and Guy Franklin seems to be doing exactly that.
🔍 Fact Checker Results:
✅ Franklin’s fund has indeed had two AI-linked exits: Talon and Gem Security, verified by public acquisition records.
✅ NYC is currently experiencing a surge in AI activity, backed by OpenAI’s recent expansion and VC firm concentration.
✅ AI-driven decision-making tools are increasingly adopted in VC due diligence, as confirmed by multiple 2024 industry surveys.
📊 Prediction:
In the next 3–5 years, Israeli startups that specialize in AI infrastructure, LLM observability, and industry-specific agents will dominate exit charts—especially those entering the U.S. market via NYC. Venture funds that fail to embed AI at the core of their operations will fall behind, unable to match the speed, insight, and technical due diligence capabilities of AI-native firms. Expect NYC to rival San Francisco as the top global hub for applied enterprise AI.
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Reported By: calcalistechcom_3c51354f92e2ed2aa9295004
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