Modus Raises $10 Million to Launch Context Warehouse for Enterprise AI

Israeli startup Modus has emerged from stealth with a $10 million seed round led by Insight Partners, with participation from Soma Capital and technology entrepreneurs including executives from Cyera, Wix, Dazl and Epsagon.

The company introduced its Context Warehouse, an AI-native infrastructure layer designed to solve what it calls the “Context Gap” — the disconnect between the information enterprise AI systems can access and the business knowledge they actually need to generate accurate responses.

According to Modus, enterprises deploying AI agents often face rising costs, slower response times and unreliable outputs because AI models retrieve excessive amounts of enterprise data without understanding which information is truly relevant. The Context Warehouse continuously learns how an organization operates by analyzing structured and unstructured data, metadata and real usage patterns, then supplies each AI interaction with only the context required.

The company says the approach can reduce unnecessary retrieval and AI token consumption by up to tenfold while improving response quality and governance.

Founded by Daniel Shimoni, former VP of Product at Lusha, and Tomer Mesika, former Head of Architecture at Cyera, Modus operates independently of data warehouses, AI models and enterprise applications, allowing organizations to integrate existing AI agents through open standards such as MCP.

The platform is already deployed with enterprise customers in the financial services, technology and SaaS sectors, where, according to the company, it has improved AI accuracy, strengthened governance and reduced the operational cost of enterprise AI deployments.

The funding will support further development of the platform and expansion of its enterprise customer base.

Photo: Omer Hacohen