Tech11:27 · 15m ago

Velocity Raises $22 Million to Build AI App Advertising Network

Calcalist

Translated & summarized from Calcalist by baba

Key points

01Velocity raised $22 million in seed funding led by NFX and Red Dot Capital Partners.
02The company was founded by former ironSource and Unity executives and employs about 20 people in Israel.
03Velocity’s platform analyzes AI user intent in real time to enable targeted advertising without privacy breaches.
04The startup aims to monetize AI apps where 95% of users currently do not pay, unlike gaming apps.
05Velocity sees AI interfaces as the next major advertising revolution after internet and mobile.
06The platform helps AI apps expand free usage while generating revenue alongside subscriptions.

In this story

People

Tal Shoham, Amir Shaked, Nimrod Zuta, Guy Kirshenbaum, Ophir Ehrlich, Elad Kushnir, Omer Kaplan, Nadav Ashkenazi

OrganizationsVelocity, NFX, Red Dot Capital Partners, Stardom Ventures, Corner Ventures, Transcend, ironSource, Unity

PlacesIsrael

The story · English

Velocity, a company developing revenue and distribution infrastructure for AI applications, announced the completion of a $22 million seed funding round. The round was led by venture capital firms NFX and Red Dot Capital Partners, with participation from Stardom Ventures, Corner Ventures, and Transcend. Founded by former ironSource and Unity executives Tal Shoham (CEO), Amir Shaked (COO), and Nimrod Zuta (CPO), the company also added Guy Kirshenbaum as Founding VP of Engineering. Velocity currently employs about 20 people and operates its R&D center in Israel.

Within months of its founding, Velocity's technology has been adopted by leading international AI companies serving millions of daily active users. The seed round also attracted angel investors from the tech, AI, advertising, and gaming sectors, including Ophir Ehrlich (EON), Elad Kushnir, Omer Kaplan (ironSource co-founder and Zyg CEO), Nadav Ashkenazi (Zyg co-founder), Amit Gilon, Gilad Almog (SuperPlay founder and CEO), and Lior Shiff (Tripledot Studios founder and CEO).

Tal Shoham explained that Velocity aims to build a monetization platform for AI-native companies, similar to what ironSource achieved for gaming companies. He highlighted the challenge that 95% of AI users do not pay, and the cost of AI usage is much higher than gaming. Velocity’s advertising layer is designed not only to generate revenue but also to enable sustainable usage and customer retention. The platform offers advertisers direct access to users’ prompt-based interactions without compromising privacy.

Velocity believes the shift to AI interfaces represents a third major revolution in advertising, following the internet search and mobile app eras. With hundreds of millions using AI products daily but few paying subscribers, and rising AI operational costs, the company sees its infrastructure as essential for enabling growth and revenue generation. Their platform analyzes AI interactions in real time to understand user intent, unlike traditional ad systems based on browsing history. This intent-driven approach allows dynamic, relevant commercial messaging and helps AI apps expand free usage while generating additional income alongside subscriptions.

Shoham emphasized efficiency over size, noting the company’s ability to scale rapidly with a small, effective team. Velocity is prepared to raise more capital as needed to accelerate growth and meet demand.

Read the original at Calcalist