# Arato Software

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/arato-software

- Industry: Software
- Headquarters: Tel Aviv, Israel
- Website: www.arato.ai
- Total disclosed funding: $10M
- Latest round: Seed (Jun 29, 2026)
- Investors on record: 2

## About

Arato AI, based in Israel, develops sophisticated simulation tools to improve AI application performance and compliance, focusing on real-world user scenarios for enhanced validation and user experience.Based in Tel Aviv, Israel and founded in 2024, Arato Software Ltd., founded by Shahar Erez, Hilik Paz, and Tal Salmona, provides AI testing, simulation, evaluation, observability, and assurance software for the artificial intelligence and enterprise software industry. The company enables organizations to simulate real-world user interactions, identify risks and failures, evaluate AI system performance, and ensure AI applications meet business, security, and regulatory requirements before and after deployment. In June 2026, Arato AI raised USD 10 million in seed funding led by TLV Partners, with participation from Jibe Ventures. Individual investors and Other unspecified investors also participated in the round.Arato.ai specializes in the development of advanced simulation tools aimed at enhancing the performance and compliance of AI applications. Their core product offerings focus on creating dynamic, real-world user scenarios that autonomously identify AI use cases, workflows, and business goals. These simulations allow companies to validate their AI systems by executing thousands of multi-turn conversations that mimic real user behavior. The solution is particularly beneficial for sectors such as HR, where compliance and user experience are critical. Arato.ai's products are utilized by AI-driven teams globally, and the company markets its solutions primarily in North America, Europe, and parts of Asia. The tools are designed to integrate seamlessly with various AI systems, ensuring accessibility for a diverse client base, including enterprises across various verticals.Arato.ai generates revenue through a subscription-based model, allowing clients to access its simulation platform on a recurring basis. Clients typically engage with the company to deploy its flagship simulation tools, which include capabilities for real-time analysis, agent behavior monitoring, and compliance checks. The pricing structure is designed to accommodate different organizational needs, enabling businesses to scale their use of the platform according to their operational requirements. This transactional approach supports both B2B engagements and direct-to-consumer interactions, facilitating extensive usage across multiple industries. Clients benefit from a free initial simulation, which serves as an entry point to their subscription offerings, allowing them to evaluate the platform's effectiveness before committing to a more comprehensive package.The company will use the funding June 2026 to develop its AI testing platform and support its growth in the AI assurance market.

## Funding rounds

- Seed, Jun 29, 2026, $10M — TLV Partners, Jibe Ventures

## Investors

- TLV Partners (https://capitalatlas.ai/funds/tlv-partners) — Seed
- Jibe Ventures (https://capitalatlas.ai/funds/jibe-ventures) — Seed