Israeli Startup Modus Raises $10 Million to Teach AI Agents Business Context
Israeli startup Modus has raised $10 million in a seed funding round led by Insight Partners. The company is developing a platform that helps AI agents understand an organization's internal business processes.
The Israeli startup Modus has raised $10 million in a seed funding round led by the Insight Partners fund. The round also included participation from Soma Capital, alongside various entrepreneurs and senior executives, including Eyal Kishon, Nadav Avrahami from Wix and Dazl, and the founders of Cyera and Epsagon.
Modus was founded this year by Daniel Shimoni (CEO) and Tomer Masika (CTO), who bring complementary experience in the fields of data, product, and infrastructure. Shimoni previously led the product department at Lusha, where he observed that the value provided by AI systems depends heavily on the business context behind the data. Masika served as Head of Architecture at Cyera, where he led the development of infrastructure for the classification, management, and security of sensitive organizational information. The company currently employs 12 people, all based in Israel.
Modus is developing a platform that systematically learns how an organization operates and provides AI agents with only the relevant context for every action. The platform analyzes queries, dashboards, documents, code, and work conversations, updating as the organization evolves. By doing so, it reduces the 'Context Gap' — the distance between having access to information and understanding the definitions and business logic upon which the organization relies. This reduces unnecessary queries to information sources and token consumption by up to 10 times, while simultaneously improving the speed and reliability of answers.
Daniel Shimoni, CEO and co-founder of Modus, stated:
'Organizations are no longer asking only how to introduce AI into work, but how to operate it throughout the company without accuracy dropping, without control being compromised, and without costs getting out of control. AI agents need to understand how the organization really works and not just get access to additional systems.'
