Wix, an Israeli website-building platform, has acquired Base44, an Israeli AI app-making startup, for US$80 million.

The deal includes potential revenue-based adjustments by 2029 and represents a strategic move into the AI-driven app development sector.

The deal was finalized amid ongoing conflict in Israel regarding tensions with Iran. Despite these challenges, both companies are committed to expanding AI capabilities in software development.

Base44 was founded six months ago by 31-year-old Maor Shlomo. He leads a team of fewer than 10 employees.

The startup, which has not raised external funding, has gained over 100,000 users with its prompt-based tool that allows users to create applications or games without needing coding skills.

Shlomo, previously the CEO of big-data company Explorium, launched Base44 as a personal project after completing military reserve duty in late 2024.

Wix plans to integrate Base44’s AI interface into its platform to help users build applications quickly. This acquisition aligns with Wix’s AI strategy, which includes other tools such as Wixel, an AI design assistant, and Astro, a personal AI guide.

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🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Lean AI startups achieving outsized valuations follows historical pattern

Base44’s US$80 million acquisition with just six employees highlights a recurring pattern in tech acquisitions where small teams create extraordinary value.

This represents around US$13.3 million per employee, continuing the trend seen in other notable acquisitions like Instagram, which was valued at around US$77 million per employee when Facebook purchased it for US$1 billion with just 13 team members1.

The efficiency of modern AI development allows skilled founders to create significant value with minimal overhead, challenging traditional notions that scaling requires large teams.

Shlomo’s rapid path from concept to exit mirrors previous cases where innovative products found quick market traction and attracted acquirers seeking to enhance their technological capabilities rather than building similar features internally.

This pattern is particularly pronounced in AI-related acquisitions, where specialized expertise often commands premium valuations regardless of team size or company age.

2️⃣ The rise of no-code evolving into “vibe coding” represents a fundamental shift in software creation

Base44 exemplifies the evolution from traditional no-code platforms to AI-powered “vibe coding,” where users simply describe what they want and AI generates the actual application.

This shift aligns with broader industry data showing 78% of developers now use AI tools in their workflow, indicating a transformation in how software is conceived and built2.

The acquisition represents a natural evolution for Wix, which disrupted website creation with its no-code platform and is now embracing AI to extend similar capabilities to full application development.

Industry forecasts predict this trend will accelerate, with McKinsey research indicating AI-enabled software development is reducing time-to-market while increasing innovation capacity across the industry3.

This transformation is making software creation accessible to non-programmers, potentially addressing the global talent shortage in tech that has pushed many companies toward IT outsourcing4.

3️⃣ Israeli tech resilience showcases innovation continuing despite regional challenges

The timing of this acquisition, finalized during heightened tensions between Israel and Iran, demonstrates the resilience of Israel’s technology ecosystem.

Shlomo’s story reflects this resilience personally, creating Base44 as a side project after completing reserve duty following the October 7 attacks, then building it into a profitable business within months despite the challenging environment.

This acquisition follows Shlomo’s previous success co-founding Explorium, which raised $19 million in 2019 and grew to over 100 employees, showing a pattern of serial entrepreneurship that characterizes Israel’s startup ecosystem5.

The fact that Base44 attracted 100,000+ users and generated $189,000 in profit before seeking external funding demonstrates the focus on sustainable business models rather than growth at all costs.

As Shlomo noted in the article, “the lawyers finalized all the details of the purchase agreement on Thursday night, and the signing was scheduled for Friday morning, just as the war with Iran began,” highlighting how business continues despite geopolitical tensions.

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