Today in the Israeli tech ecosystem, Velocity, an AI platform for targeted advertising, raised a $27 million seed round led by NFX and Red Dot Capital Partners. The company already serves 20 clients.

Why it matters

Founded by ex-ironSource and Unity executives, Velocity offers an AI solution for ads on consumer and B2B platforms. The round reflects continued investor interest in Israeli AI technologies.

What the experts say

According to data published by the Israel Innovation Authority, one in three Israeli startups founded in the last five years was built around AI from day one, the highest share of any country. These AI-native startups grow revenue at 185% annually on average and are 5.9× more likely to reach $1M in revenue than the global average.

86% have developed proprietary AI models, compared to 72% globally.

The bottom line

The conversation in the Israeli ecosystem continues to center on building AI-native companies with measurable business outcomes. Velocity's raise adds to this trend of rapid growth in the space.