Hi everyone,

This week’s most remarkable story was about people stepping forward under extraordinary pressure. The captain, crew and passengers who helped avert catastrophe during the attempted hijacking of a flydubai flight bound for Tel Aviv deserve enormous recognition. As we approach the third anniversary of October 7, their courage feels especially poignant.

In tech, Israel closed September with $2.77 billion raised across 28 rounds, according to CTech. Five companies captured roughly 69% of that capital. The headline is encouraging, but for early-stage founders, the practical question remains: what do you need to prove to get funded?

This week offered some clues about where investors see opportunity. Reco raised $55 million to secure AI agents and their access to enterprise applications, while Rig Security emerged with $12 million to protect identities and permissions. HyperGuest raised $25 million for hotel distribution infrastructure, including connections to AI agents, and enso raised $15 million for agents that execute marketing and sales work.

Then there’s Inferize, a 17-person startup acquired by Nebius less than nine months after its founding. CTech estimates the deal at $100 million–$150 million. Its focus: loading AI models quickly enough for inference capacity to respond to demand. Alongside another wave of launches from OpenAI, Anthropic and Google, it’s a useful reminder that solving a specific, expensive problem can create substantial value.

That connects this week’s two essays: what investors expect at each funding stage, and where startups can build an advantage when everyone has access to better AI models.

Let’s dive in!

Eze

Recent articles

This week's #FIRGUN newsletter The full rundown of funding rounds, exits and global AI developments, including Protego Ventures’ $125 million inaugural fund, plus reports worth reading from leading investors and research firms. Read article

What it takes to raise in 2026 Funding benchmarks and the evidence investors look for at each stage. What will your next round allow you to prove? Read article

Your customers don't care what model you use Better models improve everyone’s product. A look at how distribution, workflow expertise and customer relationships can help you build an advantage that lasts. Read article

Quote of the week

Chart of the week

What it takes to raise pre-seed, seed and series A in 2026 from my VC Cafe post on fundraising benchmarks (source)