Israel's Natural Language Processing (NLP) Startup Landscape 2019

The era of Natural Language Processing is taking shape and making its mark on the Artificial Intelligence research and entrepreneurial community. Israel's Natural Language Processing (NLP) startup ecosystem is stepping into the fast lane with support from advances in neural network techniques and automated recognition systems to truly make sense of natural language, written or spoken. We've analyzed startups utilizing or developing NLP technologies in Israel as a part of their core offering to reveal the startup clustering and concentrations across various industry verticals. The infographic above depicts Israel's NLP related startups by the verticals in which they're targeting.

Here's the top five highlights of Israel's NLP startup landscape of 2019:

1. $2.9 billion in private funding has been raised by Israel's NLP startups cumulatively.
2. The industry peaked in 2017 but has already raised nearly half of the total amount raised in the previous year. In 2018, the NLP ecosystem raised $463 million across 54 funding rounds, down from $858 million from 60 deals in 2017.
3. There has been 14 NLP startup exits in Israel, averaging $43 million per startup exit.
4. The majority of startups in the NLP ecosystem are bootstrapped (42%), while 23% have raised a Seed round, 16% have raised an A round, and 10% have raised a B round.
5. There are 210 active NLP startups in Israel. 24 startups building NLP technologies were founded last year alone, averaging 31 NLP based startups founded annually over the last five years.

The infographic above is updated annually.

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