Sequoia’s Shaun Maguire: “Israel Can Build Trillion-Dollar Companies”

Israel’s Future in Tech: Beyond Wiz and Into AI & Defense

At the 2025 Mind the Tech NY conference, Shaun Maguire, a partner at Sequoia Capital, expressed his strong belief in Israel’s potential to create trillion-dollar companies. While cybersecurity has been a long-standing strength of the Israeli tech ecosystem, Maguire emphasized that the next wave of major breakthroughs would come from artificial intelligence (AI) and defense technology.

Maguire noted that despite Israel’s significant AI talent pool, the country lags in foundational AI development due to limited computing power and energy resources. He stressed that without major investments in data centers and computational infrastructure, Israel would struggle to compete with AI powerhouses like the U.S. and China.

Sequoia Capital remains bullish on Israel, with Maguire stating that now is the ideal time to invest, even as some investors withdraw due to geopolitical instability. He also reaffirmed Sequoia’s existing commitment, mentioning their backing of Israeli startups like Eon and Decart.

Maguire’s personal connection to Israel further reinforces his advocacy. He recently bought a home there and has been vocal in defending Israel on social media, especially following the war that began on October 7. Despite facing backlash for his stance, he remains steadfast in his support.

Looking ahead, Maguire envisions Israel developing at least one trillion-dollar company within the next decade, surpassing even Wiz, which was recently acquired by Google for $32 billion. He believes the combination of ambition, government support, and strategic investment will be key to Israel’s success in global tech markets.

What Undercode Says: Analyzing Israel’s Tech Potential

The Role of AI and Defense in Israel’s Economy
Maguire’s argument about Israel’s technological future centers on two industries: AI and defense tech. Historically, Israel has been a leader in cybersecurity, but AI presents a new challenge. While Israeli researchers and entrepreneurs have been influential in AI breakthroughs—such as Ilya Sutskever and Noam Shazeer—the country lacks the infrastructure to build vertically integrated AI companies.

To close this gap, Israel must prioritize investments in computational power, energy resources, and cloud infrastructure. Companies like Nvidia’s Mellanox acquisition highlight the potential, but broader systemic improvements are required.

2. The Investment Landscape: Opportunity in Uncertainty

Maguire’s belief that “the best investors make their biggest bets in difficult times” is a classic venture capital philosophy. Historically, economic downturns and geopolitical crises have led to undervalued opportunities that, with the right investment strategy, yield massive returns.

Sequoia’s commitment to Israel, despite the current instability, signals a long-term vision. Startups that survive this period may emerge stronger, benefiting from a less crowded market and increased government support.

3. The Wiz Benchmark: Can Israel Go Bigger?

The $32 billion acquisition of Wiz by Google set a new standard for Israeli startups. Maguire suggests that Israel is capable of producing companies even larger. However, for a trillion-dollar company to emerge, several factors must align:

Global Market Reach: A company at this scale needs a dominant presence in international markets, not just local or regional success.
Government and Private Sector Synergy: Infrastructure improvements, tax incentives, and funding initiatives will play a critical role.
AI and Deep Tech Breakthroughs: Cybersecurity alone won’t produce a trillion-dollar company—deep innovations in AI, semiconductors, or biotech could be the game-changer.

Risks and Challenges: Political Instability and Brain Drain
Despite Maguire’s optimism, there are risks. Political instability, ongoing conflicts, and investor hesitation could slow down growth. Moreover, a significant portion of Israel’s top AI talent operates in the U.S., rather than domestically. If Israel fails to provide the right incentives, it risks losing its best minds to Silicon Valley.
The Moral and Economic Case for Investing in Israel
Maguire frames investment in Israel as both a smart business decision and a moral imperative. From a purely financial perspective, betting on Israeli tech aligns with historical patterns of innovation. From a moral standpoint, supporting Israeli startups during uncertain times fosters long-term loyalty and economic resilience.

6. Sequoia’s Selective Approach: Quality Over Quantity

While Sequoia is known for its big bets, Maguire clarified that the firm makes only around 30 investments per year, with 3-5 in Israel. This measured approach ensures that only the highest-potential startups receive backing. Instead of spreading resources thin, Sequoia focuses on identifying game-changing companies.

The Next Decade: What’s Needed for a Trillion-Dollar Israeli Company?

– Massive AI and Compute Investments: The government and private sector must collaborate to build next-generation AI infrastructure.
– Deep Tech and Hardware Innovation: Software alone isn’t enough—semiconductors, quantum computing, and biotech could drive growth.
– Attracting and Retaining Talent: Keeping Israeli AI pioneers in Israel will be crucial to long-term success.
– Geopolitical Stability: While crises create opportunities, a stable business environment is necessary for sustained scaling.

Maguire’s vision is bold, but feasible. If Israel can overcome these barriers, it may indeed build a company that surpasses even Wiz.

Fact Checker Results

Israel’s AI Lag – True, Israel has top AI talent but lacks the necessary computational infrastructure to compete globally.
Sequoia’s Investment Trends – Verified, Sequoia has historically invested in around 30 startups annually, with a steady but selective presence in Israel.
Potential for a Trillion-Dollar Israeli Company – Plausible but uncertain; requires significant structural and policy changes.