F2 News | June 2025 | Insights

Message From The Team

The 12-Day War has ended with a welcome ceasefire and a renewed sense of possibility for the region. Israel’s technological edge played a decisive role in the speed, precision, and coordination behind the outcome. The same talent that built these capabilities is now driving the next wave of global technology companies.

At F2, our founders didn’t pause. Throughout this period, they kept building—shipping product, signing customers, and closing new investment rounds. Their resilience is exactly why we continue to believe Israel is the best place on earth to build an AI startup.

In the months ahead, we’ll be announcing new additions to our team and portfolio. We’re incredibly excited for what’s coming next.

‍

Regulus Ring C-UxS - compact, autonomous counter unmanned systems point-defense

‍

Sector Spotlight

What unfolded during the 12-Day War was more than the resolution of an existential threat. For technology investors, it signals the start of a new chapter—defined by reduced risk, greater visibility, and an expanding opportunity for Israeli startups in the US as well as our region.

The war revealed a powerful dynamic: Israel’s Startup Nation innovation—especially in AI and dual-use tech—worked in real time with US capabilities to solve critical challenges. Take the surge in Israeli-developed anti-drone systems: nearly 50% of those deployed came from startups like Regulus, backed by fast-tracked government support and tight integration with American defense platforms. Meanwhile, American tech giants—Microsoft, Google, Amazon, OpenAI—scaled cloud and AI services on the fly to support Israeli operations.

On the diplomatic front, the Abraham Accords, signed in 2020, have proven remarkably durable. Analysts now anticipate a second wave of normalization that could reshape regional trade, investment and technological collaboration. Consider this: Saudi Arabia and the UAE are investing billions to transform their energy reserves into digital infrastructure—Saudi is targeting 2.6 GW of new data center capacity by 2027, and the UAE is building a 5 GW AI-focused cluster in Abu Dhabi. As these hubs come online, Israeli startups—already leaders in applied AI, cyber and model optimization—are well positioned right next door to deliver the talent, applications and secure architectures needed to capitalize on these investments in a sustainable way. Read More

‍

F2 Portfolio News

Zero Networks raised $55 million in Series C funding to expand its agentless microsegmentation platform.
Regulus’s counter-UAV system was used extensively during the 12 Day War, performing flawlessly to protect lives and critical infrastructure.
Parametrix launched a first-of-its-kind SLA insurance product for the data centers market.
Darrow has been named one of Inc. Magazine Best Workplaces of 2025.
Darrow was featured in Law.com for its AI-powered platform surfacing emerging class actions and reshaping how plaintiffs' firms source and pursue litigation.
Faye has been named one of America’s Best Online Platforms of 2025 by Newsweek.