Venture Capital in Israel: A Comprehensive Guide to Top Investors

Israel is a hotbed for venture capital, with a thriving ecosystem that has produced some of the world's most successful startups.

Israel has a unique advantage in the venture capital scene, thanks to its strong ties with the US and Europe, which provides access to a large pool of capital and expertise.

The country is home to many top-tier venture capital firms, including Bessemer Venture Partners, which has invested in companies like Wix and Fiverr.

Bessemer Venture Partners has a significant presence in Israel, with a team of experienced investors who have a deep understanding of the local market.

Israeli startups have seen a mix of trends in venture capital investment over the last five years. At the early stage, VC investment has remained fairly stagnant.

To access early-stage funding rounds into Israeli startups, you can check out the platform mentioned in the article. Scaleup-stage funding rounds are also available for Israeli startups on the same platform.

Homegrown companies that moved their headquarters outside of Israel, such as Trax and Claroty, were responsible for the 2021 surge in VC investment.

Cloud investments in Israel are showing signs of improvement, with venture capital firms looking to capitalize on the growing demand for cloud-based services.

In the second quarter of 2024, a notable amount of $2.5B was invested in cloud-related startups, marking a positive trend after a slow start to the year.

This influx of funding is likely to fuel the growth of Israeli cloud startups, providing them with the resources they need to innovate and expand their operations.

Israeli startups are well-positioned to capitalize on the cloud trend, with many already established in the market and looking to scale their businesses.

The cloud market in Israel is expected to continue growing, driven by the increasing adoption of cloud-based services by businesses and individuals alike.

At the early stage, VC investment in Israel has remained fairly stagnant over the last five years.

If you're looking to access early-stage funding rounds into Israeli startups, you can do so on the platform.

Homegrown Israeli companies that have relocated their headquarters outside of Israel, such as Trax and Claroty, were mostly responsible for the 2021 surge in VC investment.

For scaleup-stage funding rounds into Israeli startups, you can access them on the platform.

StageOne Ventures invests in exceptional founders of Early-Stage B2B Deep Tech start-ups in the Israel-Related Ecosystem, with a focus on creating market access and partnerships that propel seed-stage entrepreneurs forward.

You can find jobs in StageOne's portfolio companies, such as Silverfort and Otonomo.

In Israel, the top funded industries in 2024 are Security, Enterprise Software, and Health, with Security attracting more than 40% of all VC investment. This is a significant trend that highlights the country's expertise in cybersecurity and innovation.

Security is a well-known hotspot for cyber innovation, and it's no surprise that it's the most funded category in Israel in the last five years, both over-indexing compared to the global average. Enterprise Software is also a major player, with many successful startups and established companies in the field.

The most funded industries by VCs in Tel Aviv include cybersecurity, AI, fintech, SaaS, health tech, agritech, autonomous vehicles, and blockchain. These industries are driving innovation and growth in the region.

New Era Capital Partners is a pioneering early-growth venture fund that focuses on ESG (Environmental, Social, and Governance) technology investments. Their investment committee follows a meticulous due diligence process to ensure that their investments are responsible and sustainable.

Here are some of the top industries attracting venture capital investment in Israel:

Israel's venture capital ecosystem is thriving, with a strong culture of entrepreneurship and innovation. Investors from around the world are taking notice, drawn by the country's technological prowess and growing unicorns.

iAngels is one of Israel's top-tier startup investment companies, offering an online investment platform and actively managed funds to access exclusive early-stage technology companies. This includes a focus on Enterprise Software, Frontier Technology, FinTech, and Environmental Technologies.

Pitango Venture Capital and Jerusalem Venture Partners (JVP) are notable venture capital funds that have played crucial roles in steering the country's VC investments. They have been instrumental in nurturing the ecosystem's dynamism and resilience.

Top investors in Israel include iAngels, Pitango Venture Capital, and Jerusalem Venture Partners (JVP), among others. These investors have been pivotal in supporting the growth of startups in the country.

Here's a list of some of the top venture capital firms in Tel Aviv:

MizMaa Ventures is another notable player in the Israeli venture capital scene, with a focus on strategic investments in deep-technology solutions. They have a proven track record in venture capital, entrepreneurship, and law, and offer valuable connections and expert guidance to their portfolio companies.

Israel's venture capital scene is home to some of the most prominent and successful venture capital firms in the world. Pitango Venture Capital, Viola Ventures, and Vertex Ventures Israel are just a few of the leading VC firms that actively invest in high-growth sectors like cybersecurity, AI, and fintech.

Glilot Capital Partners stands out for its focus on Cyber, DevOps, and Enterprise Software, with a team that includes serial innovators from elite units of the Israeli military. With 12 exits in under 10 years, Glilot Capital has been consistently ranked among the top five best-performing venture capital firms globally.

Oryzn Capital is another notable VC firm in Tel Aviv, dedicated to nurturing early-stage startups through its 18-month program that includes mentorship from accomplished startup founders and C-level executives. The firm's commitment to driving innovation has led to successful collaborations with remarkable Israeli entrepreneurs.

Some of the most active investors in the Israel startup ecosystem include Pitango Venture Capital, Jerusalem Venture Partners (JVP), and Glilot Capital Partners. Here are a few notable VC firms in Israel:

Viola Ventures is part of Viola, Israel's leading tech-focused investment group with over $3B AUM. It empowers early stage start-ups to become global leaders.

Viola Ventures has backed some of Israel's unicorns such as Payoneer, Lightricks, Outbrain, Redis Labs, and ironSource.

Vertex Ventures Israel, part of the global Vertex Ventures network, stands as an esteemed investment firm focusing on early-stage funding for startups. It has a diverse portfolio that spans sectors such as cybersecurity, artificial intelligence, commerce, and digital health.

Vertex Ventures Israel oversees 43 exits with a total value exceeding $22B, a testament to the firm's expertise and success in nurturing startups to fruition.

Canaan Partners Israel is an early stage venture capital firm that invests in entrepreneurs with visionary ideas. It has $5B under management and a diversified fund with over 190 exits to date.

Cardumen Capital has garnered widespread acclaim for its steadfast commitment to backing visionary founders poised to revolutionize the world through technology.

Here are some notable international VCs:

Gemini Israel Ventures is no longer investing, marking the end of an era for the pioneering venture capital firm in Israel's tech industry.

Gemini was the first venture capital fund to emerge from the Israeli government's Yozma program in 1993.

The firm specialized in early and seed stage investments in technology companies, with a focus on mobile, digital media, enterprise software, online services, and semiconductors.

Gemini's notable exits include WalkMe, Moovit, Autotalks, and Panaya, which were sold to Insight Venture Partners in 2019.

The sale left Gemini with remaining holdings in Riskified, Innovid, and Valens.

Tel Aviv is a global startup hub, home to leading VC firms such as Pitango Venture Capital, Viola Ventures, Vertex Ventures Israel, Aleph, OurCrowd, 10D, and Glilot Capital Partners.

These firms actively invest in high-growth sectors like cybersecurity, AI, fintech, deep tech, and SaaS, which are the most in-demand industries for startups in Tel Aviv.

The symbiotic relationship between startups and venture capital firms is the foundation of Tel Aviv's thriving entrepreneurial environment, propelling development, prosperity, and revolutionary change for Israeli startups on a worldwide scale.

Tel Aviv is a global startup hub, home to leading VC firms such as Pitango Venture Capital, Viola Ventures, Vertex Ventures Israel, Aleph, OurCrowd, 10D, and Glilot Capital Partners. These firms actively invest in high-growth sectors like cybersecurity, AI, fintech, deep tech, and SaaS.

Startups in Tel Aviv can tap into a wealth of resources, including startup incubators & accelerators like The Floor, Techstars Tel Aviv, 8200 EISP, and MassChallenge Israel. Investor networking events such as Cybertech Tel Aviv, OurCrowd Global Summit, and DLD Tel Aviv Innovation Festival are also great opportunities to connect with regional and global investors.

Here are some top venture capital firms in Tel Aviv for startups:

These firms have a proven track record of investing in high-growth startups, and can provide valuable guidance and support as you navigate the startup landscape.

Venture capital firms in Tel Aviv conduct a thorough due diligence process before investing in a startup. This process typically takes 6-12 weeks, depending on the funding stage and industry complexity.

The due diligence process includes technology validation and product scalability assessment. This involves evaluating the startup's technology and product to ensure it's scalable and can meet the demands of the market.

Financial statements, revenue projections, and risk evaluation are also a crucial part of the due diligence process. This helps the VC firm understand the startup's financial health and potential for growth.

Legal and intellectual property (IP) compliance with Israeli business regulations are carefully evaluated. This ensures the startup is in compliance with all relevant laws and regulations.

Founder background checks and competitive market positioning are also part of the due diligence process. This helps the VC firm understand the startup's leadership and competitive advantage.

Here's a breakdown of the key components of the due diligence process:

Grove Ventures is a significant player in the Israeli venture capital scene, founded in 2017. They're known for their seed, series A, and series B investments in the software and internet sectors.

Grove Ventures has a notable portfolio, including ActiveFence, Wiliot, Protai, Ramon.Space, and Lumigo. Their focus is on partnering with exceptional entrepreneurs who are shaping the "Deep Future".

With over half-a-billion dollars under management, Grove Ventures is a force to be reckoned with. Their investment strategy revolves around a methodical approach to disruptive innovation.

Here's a brief overview of Grove Ventures' investment stages:

Grove Ventures' commitment to driving tangible results for its portfolio companies and stakeholders is evident in their value creation efforts and unwavering support for startups.