Israeli Synthetic Data Startup Datomize Closes $6M Seed Round

Israeli startup Datomize announced the closure of a $6 million seed funding round this week led by TPY Capital, and with participation from its first investor F2 Venture Capital.

Founded in 2019, the Tel Aviv-based Datomize developed a synthetic data solution to accelerate and streamline the development, training and testing of artificial intelligence (AI)/machine learning (ML) models and new products that drive business growth.

The company is looking to solve is a massive data shortage caused by data privacy laws that is limiting the effectiveness of development and training of AI/ML models.

Datomize says it synthesizes new data that preserves the behavioral features of the original data without violating personal privacy regulations. The model is based on real customer data and insights from global banks. This ability “improves the efficiency and speed of developing and training AI/ML models and applications for hundreds of use cases, as companies become more data-driven in the new online economy,” according to a company statement.

“Datomize’s synthetic data revolutionizes the AI/ML and IT lifecycle by removing the major bottleneck that prevents the successful deployment of AI/ML models and continuous delivery of evolving applications,” said Avi Weiss, founder and CEO. “Datomize makes the generation and management of synthetic data simpler, more effective, and efficient, so that highly trained and hard to find data scientists can focus on analysis and strategy.”

“Datomize has the potential to enable enterprises to unlock the value of one of the most prized assets – their data,” said TPY’s Dekel Persi. “It eliminates one of the biggest concerns of executives and regulators, jeopardized privacy, by producing synthetic data which can be used for multiple business applications.”

Jonathan Saacks from F2 Venture Capital said Datomize had “the right solution at the right time.”

“They are supplying exactly what organizations need to accelerate their digital transformation initiatives,” he added.