The Israeli Pre-Seed Report 2025 by Fusion Ventures sheds light on the state of pre-seed funding in Israel.Pre-seed rounds in Israel are still active and evolving, with a focus on AI-powered ventures.Israeli pre-seed rounds exhibit characteristics of being fast-paced, focused, and often involving slightly smaller funding amounts.The report distinguishes between ventures engaged in core AI development versus AI-enabled applications.Pre-seed valuations in Israel average $6.45M post-money with funding rounds typically ranging from $825K to $1.5M.In 2024, pre-seed rounds saw more VCs participating with smaller check sizes and fewer angels making larger individual investments.Comparison with the US and Europe shows differences in funding structures and investor requirements.The report emphasizes the importance for founders to focus on building strong teams, MVPs, and early traction during the pre-seed stage.Founders are advised to avoid excessive dilution by understanding milestones and budgeting effectively for the pre-seed.It is recommended to avoid raising successive SAFEs and to aim for a reasonable valuation in the pre-seed round for future growth.