As competition intensifies among global financial and technology hubs to attract artificial intelligence investment, Israeli technology companies are increasingly being pushed to scale beyond their home market, navigating tighter regulation, fragmented capital pools and shifting geopolitical dynamics across the Atlantic.
Against that backdrop, JVP, one of the largest venture capital firms in Israel, is advancing a strategy aimed at linking Israeli innovation more closely with capital markets in New York and regulatory and financial centres across Europe. The approach, outlined in recent public appearances and meetings by the firm’s founder and executive chairman Erel Margalit, reflects a broader reassessment of how Israeli AI companies expand internationally.
According to Margalit and people familiar with JVP’s thinking, the firm sees Israel as a primary source of technological research and early-stage innovation, particularly in specialised AI applications, while positioning New York and Europe as critical environments for scaling, regulatory engagement and access to international customers. The strategy mirrors a long-standing pattern among Israeli startups, many of which internationalise at relatively early stages due to the country’s small domestic market.
In recent weeks, Margalit and members of the JVP network have participated in a series of meetings and public events in several European capitals, including Paris, Frankfurt, Berlin and Milan. Participants described the visits as part of a broader effort to deepen institutional ties with financial leaders, policymakers and academic institutions across the continent.
In Berlin, JVP representatives attended a Chanukah event held inside the former Reich Air Ministry building, now home to Germany’s Federal Ministry of Finance. The gathering, which brought together figures from Germany’s financial sector alongside other invited guests, was presented by organisers as a symbolic moment linking historical memory with contemporary economic cooperation between Germany and Israel.
In Milan, Margalit met with senior figures from Politecnico di Milano and Università Bocconi, as well as representatives associated with the Tech Europe Foundation, to discuss potential collaboration between academia, industry and investors. The meetings coincided with efforts in the city to expand innovation-focused infrastructure, including the development of a new campus intended to bring together engineering, design and business communities near Italy’s industrial core.
These European engagements come amid indications that JVP is also examining the establishment of a London-based centre focused on artificial intelligence applications in highly regulated sectors such as finance, insurance, cybersecurity and climate risk. People close to the discussions say London’s regulatory expertise, depth of financial markets and proximity to European policymakers are seen as complementary to the firm’s existing presence in Tel Aviv and New York.
A recurring theme in Margalit’s public remarks is an emphasis on what he describes as sector-specific or “micro-vertical” AI — systems designed for defined industries rather than broad consumer use. Supporters of this approach argue that AI built within the operational language and regulatory frameworks of sectors such as banking and insurance is more likely to achieve sustained adoption. Critics note, however, that focusing on narrow verticals can extend development timelines and increase dependence on regulatory alignment.
Several companies in JVP’s portfolio already maintain operations in the UK and across Europe. These include Earnix, which works with insurance and financial institutions and has established ties to the London market; ThetaRay, which focuses on anti-money-laundering and financial crime detection; and ControlUp, which provides software for managing hybrid and remote work environments. JVP has pointed to these companies as examples of early international expansion beyond Israel.
More broadly, the firm’s approach reflects a wider trend among Israeli startups, many of which build multinational teams and overseas offices from relatively early stages. Industry analysts note that while this global-first strategy can accelerate access to customers and capital, it also exposes companies to regulatory, cultural and geopolitical complexity earlier in their development.
The timing of JVP’s renewed international focus coincides with growing demand for specialised AI solutions across finance, insurance, corporate enterprise and climate-related industries. Institutions in these sectors are under increasing pressure to adopt AI systems that deliver measurable performance improvements while operating within tightening compliance requirements.
As 2026 gets off to a start, JVP’s effort to frame Israel, New York and Europe as interconnected innovation nodes remains a work in progress. Whether the model leads to durable cross-border technology hubs or primarily supports individual company expansion will depend on market conditions, regulatory developments and the ability of startups to translate technical innovation into sustained commercial growth.
