AI is significantly impacting sectors like healthcare, supply chain, defense, and finance, with innovations such as AI-enhanced video management and predictive diagnostics improving operational efficiency.

The firm has a strong track record investing in early-stage, data-driven B2B SaaS companies utilizing AI, with notable investments including Braze, DoubleVerify, Nutanix, SeaLights, and Cybellum, some of which have been acquired.

Financial KPIs for AI startups include customer retention, inference costs, margins, and automation levels, with valuation strategies focusing on defensibility through proprietary data and models.

In Israel, the AI ecosystem faces gaps such as limited compute capacity, underdeveloped security and governance tools for regulated sectors, and talent shortages, which also present opportunities for growth.

Risks for AI startups include infrastructure costs, dependence on third-party models, market competition, and potential regulatory changes around AI and data privacy.

AI-driven algorithms are helping Blumberg Capital double its deal flow and enhance opportunity relevance across North America, Europe, and Israel.

Blumberg Capital is heavily investing in AI startups, especially those focusing on infrastructure, automation, and leveraging Israel's strengths in cloud infrastructure, cybersecurity, and distributed systems.

AI has transitioned from a niche to a mainstream focus in venture capital, with 90% of evaluated companies now being AI-centric, reflecting its growing importance across sectors.

The firm prioritizes startups with access to unique, hard-to-replicate data and products that improve with usage, particularly in foundational AI infrastructure and automation.

Blumberg Capital uses its '6Ts' framework—theme, team, technology, terrain, traction, and terms—to evaluate startups, emphasizing technical depth, data infrastructure, and defensibility.

There is strong exit potential in Israel for AI infrastructure startups that focus on enterprise cloud orchestration, automated scaling, and cost optimization, driven by local talent from military tech backgrounds.

Overall, AI's growing influence across sectors and the increasing focus of venture capital highlight its critical role in shaping future technological and economic landscapes.