Israeli Startup Modus Raises $10 Million to Teach AI Agents How Organizations Really Operate

Israeli startup Modus has secured $10 million in a seed funding round led by Insight Partners, with participation from Soma Capital and prominent entrepreneurs including Eyal Kishon, Nadav Avrahami from Wix and Dazl, and the founders of Cyera and Epsagon. Founded in 2024 by CEO Daniel Shimony and CTO Tomer Mesika, the company employs 12 people in Israel and focuses on bridging the gap between AI capabilities and organizational context.

Modus develops a platform that systematically learns how an organization functions and provides AI agents only with the relevant context for each task. The platform analyzes queries, dashboards, documents, code, and work conversations, continuously updating as the organization evolves. This approach reduces the "Context Gap", the disconnect between data access and understanding business logic, cutting unnecessary information requests and token usage by up to tenfold while improving response speed and accuracy.

Daniel Shimony, CEO and co-founder, emphasized that organizations are no longer just seeking to integrate AI but want to deploy it company-wide without sacrificing accuracy, control, or cost efficiency. He stated, "AI agents need to truly understand how the organization operates, not just gain access to additional systems." Modus aims to enable AI to operate effectively within the real operational frameworks of businesses, enhancing reliability and reducing overhead.