Promising Israeli startup closes after a year: the AI revolution claims another victim
The local venture founded by one of the founders of Wix and managed by the former CEO of TikTok Israel could not withstand the pressure of the artificial intelligence giants, and is now taking the platform offline.
The competition between giants in the field of artificial intelligence (AI) is claiming another local victim: the startup Dazl, which was established based on the Codux department of the company Wix, is expected to shut down its services at the beginning of next month.
The company was registered as an independent venture in mid-2025 led by Nadav Avrahami, one of the founders of Wix. It attracted about 30 employees from the department alongside Asaf Sagi (former CEO of TikTok Israel), who was appointed CEO and resigned shortly after. Last September, the venture announced a seed round of 10 million dollars led by Roi Saar's 40RTY fund with the participation of Wix itself.
Despite Dazl's attempt to create differentiation through a graphical editing interface combined with AI, it encountered a crowded and well-funded market. Competitors such as the Swedish company Lovable (which raised over 600 million dollars) and Base44 (which was acquired by Wix) make it difficult for small players to capture a significant market share. This led to the decision to close the company and recalculate its path, according to a report this evening (Tuesday) in "TheMarker".
On behalf of Dazl, it was stated that despite continuous growth in the number of users, the technological dynamics in the market and the existing capital will not allow it to produce a breakthrough in the current format. Therefore, it was decided to take the platform offline and return to the ideation stage to formulate a new value proposition.
