By Amit Attias
By Amit Attias
For years, enterprises managing cash flow, compliance, cybersecurity, and customer support relied on consulting firms, outsourcing providers (BPOs), or system integrators, as their needs seemed too complex for generic SaaS platforms. Now, with AI at the core, new startups are finally breaking through these barriers.
At Grove Ventures, we’re mapping a surge of Israeli startups building AI-driven products that replace legacy service providers, disrupting a market of $6T.
This opportunity is drawing repeat founders and experienced operators. Startups such as Wonderful, Reindeer, Real Dev, Harmony, Torq, and Tenzai are already defining the contours of the market. Their vision has attracted the backing of world-class investors like Lightspeed, Greylock, Index, Battery, and Bessemer.
In just the past two years, companies in this emerging category have raised over $1.5B, a figure that speaks to both the promise of the market and the urgency of the opportunity.
Historically, software sat alongside consultants. Now, AI is credible enough to replace them, combining automation, customization, and integration into a unified solution.
This isn’t simply the next SaaS product wave. These startups are competing with the global services industry, such as consultants, integrators, and BPO vendors.
The key breakthrough? AI closes the “hand-holding gap”: the personalization and trust consultants historically provided. With AI, those qualities can now scale globally, at SaaS economics.
The implications are profound: labor-intensive services are turning into recurring software revenue, creating massive new Total Addressable Markets (TAMs) and defensible, high-margin franchises.
In practice, these companies must deliver the full consultant experience: defining problems, scoping solutions, mining processes, integrating systems, and providing ongoing support.
Startups emerging now have the potential to reshape how enterprises buy, budget, and operate. This isn’t a feature market. It’s a multi-trillion-dollar transformation. The winners will be the enduring software companies of the next decade.
Authors:
Lotan Levkowitz
General Partner
[email protected]
Or Git
Investor
[email protected]
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