Tel Aviv, Israel, has developed as a global hub for innovation and entrepreneurship, earning them the title "Startup Nation." With its dynamic ecosystem fuelled by a confluence of technical capabilities, entrepreneurial zeal, and substantial government backing, Tel Aviv has become a magnet for ambitious companies looking to disrupt sectors and make real change on a global scale. At the center of this thriving ecosystem are venture capital companies, which play an important role in nurturing and pushing the growth of entrepreneurs. In this article, we have compiled a comprehensive list of the top Venture Capital Firms in Tel Aviv, Israel for startups looking for funding in this thriving hub.
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Topics Covered:
Why Should You Raise Funds in Tel Aviv
Venture Capitalist Funds in Tel Aviv
Closing Thoughts on Venture Capital Firms (VCS) in Tel Aviv
Why Should You Raise Funds in Tel Aviv?
1. Abundant Venture Capital Investment:
Tel Aviv has a strong ecosystem of venture capital companies, making it an appealing location for startups seeking investment. According to the Israel Venture Capital Research Center (IVC), Israeli companies raised a record-breaking $25.6 billion in investment in 2023, with Tel Aviv contributing for a sizable share of this total. The abundance of venture capital investment provides entrepreneurs with the financial resources they need to drive development, scale operations, and pursue ambitious innovation goals. Furthermore, Tel Aviv's venture capital ecosystem is distinguished by its readiness to engage in early-stage businesses, allowing entrepreneurs to raise funds at various phases of their growth.
2. High-Tech Innovation Center:
Tel Aviv is a premier high-tech innovation center, with one of the highest numbers of tech startups per capita globally. The country invests around 5% of its GDP in research and development (R&D), which is more than other countries' R&D spending. Furthermore, Israel has the world's highest percentage of GDP from high-tech industries, at 15%. For instance, Tel Aviv is a global powerhouse for artificial intelligence (AI) startups, with Israel's share of global AI startups standing at 10.5%. The number of AI startups in Israel reached 362, and the funding for AI startups in the country amounted to a substantial 4.69 billion USD. This innovative environment gives companies access to cutting-edge technology and a culture that accepts and fosters disruptive ideas and technological developments.
3. Government Support and Incentives
The Israeli government has long been a strong supporter of the country's startup ecosystem, launching a variety of initiatives and incentives to encourage innovation and entrepreneurship. The government's significant investment in innovation grants, notably for startups and technological breakthroughs, has played an important role in fostering the expansion of the startup ecosystem. To help startup growth and development, programs such as the Innovation Authority's Grant Program offer financial aid, R&D grants, and tax benefits. Furthermore, government-backed initiatives, such as the Israel Innovation Authority's Global Enterprise R&D engagement Program, encourage engagement between Israeli entrepreneurs and multinational firms, therefore promoting knowledge transfer and market access. Startups in Tel Aviv may leverage these government assistance channels to reduce expenses, speed product development, and gain a competitive advantage in the worldwide economy.
Venture Capitalist Funds in Tel Aviv
The venture capitalist funds below are actively looking for investments in promising companies throughout various stages and sectors. The stages stated do not limit the possibility of getting funding if your company is at any stage other than what is listed.
Year of Inception: 2017
Stage: Seed, Series A, Series B
Focus: Hardware,Software & Internet,B2B,AI & Machine Learning,Consumer,Finance & Crypto
Notable Portfolio: Lightricks, Namogoo, SeeTree, CHEQ
Hanaco Ventures is a renowned venture capital fund with a strong focus on investing in emerging and late-stage startups from the global tech ecosystem. The firm's investment strategies are characterized by a vertically agnostic approach, encompassing both early and growth-stage investment strategies. At the early stage, Hanaco Ventures provides funding ranging from $2-6M, while at the growth stage, the firm invests from Series C through pre-IPO, with initial check-sizes ranging from $15-20M. Hanaco Ventures' commitment to empowering tech entrepreneurs and its success in backing innovative companies solidify its position as a distinguished player in the venture capital landscape.
Year of Inception: 1988
Stage: Seed, Series A, Series B
Focus: Software & Internet,Robotics,AI & Machine Learning,Leisure & Travel
Notable Portfolio: OwnBackup, Dynamic Yield, Guesty, Axonius
Vertex Ventures Israel, part of the global Vertex Ventures network, stands as an esteemed investment firm focusing on early-stage funding for startups. With a diverse portfolio that spans sectors such as cybersecurity, artificial intelligence, commerce, and digital health, Vertex Ventures Israel plays a pivotal role in supporting the startup industry. Notable achievements include overseeing 43 exits with a total value exceeding $22B, a testament to the firm's expertise and success in nurturing startups to fruition. The company's investment strategies encompass a cross-vertical approach, from seed to Series B, and it prides itself on partnering with global-minded entrepreneurs seeking to disrupt large markets.
Axon Ventures
Year of Inception: 2014
Stage: Seed, Series A, Series B
Focus: Finance & Crypto,Software & Internet,Consumer
Notable Portfolio: Aspen Neuroscience, Edico Genome, Arti
Axon Ventures is dedicated to nurturing and scaling up innovative businesses. With a focus on supporting startups led by extraordinary founders, the company has a proven track record of investing in dynamic and best-performing sectors across Europe, Israel, and the US. Axon Ventures' investment strategies encompass a multi-strategy approach, combining primary investments with secondary transactions and co-investments, demonstrating its commitment to fostering growth and innovation. The firm's active involvement in promoting technological transformation in Andalusia, in collaboration with the European Investment Bank, further highlights its dedication to driving impact and deep tech innovation.
Crescendo Venture Partners
Year of Inception: 1993
Stage: Seed, Series A, Series B
Focus: Software & Internet
Notable Portfolio: Datos Health, env0, Perception Point, Acumen, Lightico
Crescendo Venture Partners distinguishes itself through its commitment to fostering and backing ambitious entrepreneurs aiming to establish sustainable and profitable businesses with the potential to lead their respective categories in the future. Founded by a group of seasoned venture capitalists with over 75 years of cumulative experience, the firm collaborates with the Geneva-based Crescendo group, thereby enabling a convergence of complementary skills, untapped capital sources, and access to European, LATAM, and Asian markets. With a focus on early-stage companies addressing substantial markets and offering simple solutions to complex issues, Crescendo Venture Partners adopts a cross-sectoral, technology-focused investment strategy. Notable achievements include successful IPOs and acquisitions, reflecting the firm's prowess in identifying and nurturing companies with the potential for significant growth and impact.
Year of Inception: 2012
Stage: Seed, Series A, Series B
Focus: Health,Software & Internet,Consumer& Internet,Consumer
Notable Portfolio: Inner Cosmos, My Privacy, No Traffic, Sensibo
Lool Ventures is dedicated to investing in early-stage startups with the potential to make a significant impact on the world. The firm's investment strategy centers around backing exceptional founders with ambitious visions and a strong commitment to creating innovative solutions. The firm's active involvement in guiding and nurturing startups is evident through its hands-on approach and commitment to providing the necessary resources for the growth of its portfolio companies. With a strong emphasis on supporting founders in realizing their world-changing aspirations, Lool Ventures continues to play a pivotal role in shaping the future of entrepreneurship in Israel and beyond.
Year of Inception: 2014
Stage: Seed, Series A, Series B
Focus: Software & Internet,Logistics,Robotics,Transportation
Notable Portfolio: Arbe Robotics, Revel, Aurora Labs, Cognata
Maniv Mobility is at the forefront of driving transformative innovation in the realms of mobility, transportation, and energy. The firm focuses on investing in startups dedicated to advancing cleaner, safer, and more efficient movement of people and goods. With a portfolio spanning 34 startups, Maniv Mobility has demonstrated a deep commitment to supporting pioneering technologies, from autonomous ADAS to rentable scooters, semiconductors, hydrogen fuel cells, and automotive cyber security. With a keen focus on deep tech and a resilient approach to market turbulence, Maniv Mobility continues to play a crucial role in shaping the future of sustainable mobility and energy solutions both locally and globally.
Year of Inception: 2017
Stage: Seed, Series A, Series B
Focus: Software & Internet
Notable Portfolio: ActiveFence, Wiliot, Protai, Ramon.Space, Lumigo
Grove Venture stands as a pivotal force in fostering transformative innovation and supporting visionary Israeli founders. With over half-a-billion dollars under management, the firm partners early with exceptional entrepreneurs who are committed to shaping the "Deep Future" and are poised to actualize it. Grove Ventures' investment strategy revolves around a methodical approach to disruptive innovation, spanning multiple sectors and domains. The firm's value creation efforts, unwavering support for startups, and extensive network of relationships with global investors and corporations underscore its commitment to driving tangible results for its portfolio companies and stakeholders.
Year of Inception: 2015
Stage: Seed, Series A, Series B
Focus: Finance & Crypto,Health,Software & Internet,B2B,AI & Machine Learning,Entertainment & Media,Consumer
Notable Portfolio: Buildots, Aqua, Aporia, Aidoc
TLV Partners has been instrumental in fostering groundbreaking innovation and propelling the growth of Israeli startups. Founded in 2015, the firm has demonstrated a steadfast commitment to investing in early-stage companies across diverse sectors, including data, artificial intelligence, cybersecurity, financial technology, biotechnology, and electronic commerce. With a robust portfolio of 97 investments, TLV Partners' strategic approach focuses on providing substantial capital resources to support the development of category-defining companies. The firm's leadership brings a wealth of experience and expertise, having focused on the intersection of AI in addressing commercial challenges across various sectors. TLV Partners' unwavering dedication to fostering innovation and its strategic investments underscore its pivotal role in propelling the growth and success of pioneering startups in Israel and beyond.
Year of Inception: 2017
Stage: Seed, Series A, Series B
Focus: Finance & Crypto,Software & Internet
Notable Portfolio: Laminar, Lumigo, CoreTigo, Mesh Payments
Meron Capital has significantly contributed to the advancement of Israeli technology companies. Co-founded by Liron Azrielant and Daniel Roditi, the firm has made substantial strides in the investment landscape with the announcement of their second fund, Meron II, with a total value of $50 million dedicated to nurturing promising entrepreneurs in Israel. Meron Capital is focused on agile investment strategies and leveraging their extensive network to build on the success of their initial fund established in 2017. Notably, Meron Capital has a track record of successful exits, with four of their portfolio companies being acquired, including Loom Systems, Reshuffle, Clear Genetics, and Axonize.
Year of Inception: 2012
Stage: Seed, Series A, Series B
Focus: Software & Internet,AI & Machine Learning,Entertainment & Media,Consumer
Notable Portfolio: BlueRibbon, Verbit, Nanorep, Indieflow
Oryzn Capital stands as a distinguished venture capital firm in Tel Aviv, dedicated to nurturing the entrepreneurial spirit and catalyzing the growth of early-stage startups. The firm's unwavering commitment to Israeli entrepreneurs is underscored by its mission to forge the bedrock of scalability, thus bridging the critical gap between seed and Series A funding. Oryzn Capital's investment approach is characterized by strategic capital infusion, underpinned by a structured 18-month program that encompasses mentorship from accomplished startup founders and C-level executives, facilitating the unlocking of potential in the upcoming generation of innovators. Notable achievements include the successful collaboration with remarkable Israeli entrepreneurs and the provision of invaluable mentorship through the "Founders to Founders 1:1 mentorship" program. Oryzn Capital's dedication to driving innovation, coupled with its personalized approach to fostering the growth of startups, solidifies its pivotal role in shaping the landscape of technology and entrepreneurship in Israel and beyond.
Year of Inception: 2016
Stage: Seed,Series A, Series B
Focus: ESoftware & Internet
Notable Portfolio: Anima, Aurora Labs, Coro, Orca AI
MizMaa Ventures us renowned for its strategic investments in Israeli entrepreneurs specializing in deep-technology solutions. With a mission to bridge Israeli innovation to global markets, MizMaa Ventures provides long-term investment capital, valuable connections, and expert guidance across various critical aspects such as fundraising, hiring, and go-to-market strategy. The firm's global leadership team, with a proven track record in venture capital, entrepreneurship, and law, has successfully facilitated meaningful introductions to customers, advisors, and strategic investors, leveraging their extensive experience to advise portfolio companies. The firm's strategic focus on sectors including cloud, cybersecurity, mobility, artificial intelligence, fintech, and digital health underscores its commitment to identifying and backing ambitious entrepreneurs developing disruptive technology with the potential to revolutionize major industries.
Firsttime Ventures
Year of Inception: 2014
Stage: Seed,Series A, Series B
Focus: Software & Internet,Marketing & Growth,B2B,Entertainment & Media,Consumer
Notable Portfolio: Playbuzz, Livekick, BeeHero, Wannabiz (Sociopal)
Firstime Ventures is a pioneering venture capital firm with a strategic focus on supporting new media and digital businesses. The firm is dedicated to fostering the growth of early-stage startups and helping them achieve significant scalability and maturity. The firm's investment strategy aligns with supporting innovative companies in the digital space. Moreover, Firstime Venture Capital's founder, Jonathan Benartzi, has emphasized the role of tech investment in combating climate change, further showcasing the firm's commitment to impactful and forward-thinking investments.
Year of Inception: 2014
Stage: Seed, Series A, Series B
Focus: Finance & Crypto,Industry,Software & Internet,AI & Machine Learning
Notable Portfolio: Akeyless, Classiq, IONIX, FundGuard
Team8 Ventures, a distinguished global fund based in Tel Aviv, has significantly impacted the landscape of venture capital by adopting an innovative and operationally intensive approach to investing. Established in 2014, the firm has amassed remarkable achievements, building and investing in a total of 41 companies, alongside eight successful exits, reflecting its commitment to fostering groundbreaking developments in sectors such as cybersecurity, data infrastructure, AI, fintech, and digital health. Notably, Team8's recent announcement of new funds totaling $500 million, bringing its total assets under management to well over $1 billion, underscores its resilience and substantial value delivery to portfolio companies amidst challenging market conditions. The firm's dual approach, which encompasses both Venture-Creation and Venture-Capital models, enables entrepreneurs to access a wide array of support tailored to their needs, ranging from ideation and validation processes to extensive operational support.
Year of Inception:
Stage: Seed, Series A, Series B
Focus: Finance & Crypto,Software & Internet
Notable Portfolio: DoControl, IVIX, NeuReality
Cardumen Capital has garnered widespread acclaim for its steadfast commitment to backing visionary founders poised to revolutionize the world through technology. The firm's distinguished team, with over a decade of investment experience across Israel, Europe, and the United States, brings a hands-on approach to supporting entrepreneurs in building, scaling, and ultimately achieving success. Notably, Cardumen Capital has demonstrated its dedication through a current portfolio of 32 companies and an investment capital exceeding $400 million, solidifying its pivotal role in propelling the growth of early-stage startups. The firm's distinct focus on DeepTech and AgriFoodTech, reflected in its specialized venture funds, underscores its commitment to empowering startups to drive technological advancements and transform sustainable food solutions. With a strategic emphasis on industries such as Artificial Intelligence, Big Data, Cybersecurity, and AgriFoodTech, Cardumen Capital stands at the forefront of fostering innovation and pioneering advancements in the technology landscape.
Year of Inception: 1997
Stage: Seed, Series A, Series B
Focus: Software & Internet,AI & Machine Learning
Notable Portfolio: Vast Data, BigPanda, Guardicore, Coralogix, Silverfort
Greenfield Partners is a growth equity firm with a strong presence in Tel Aviv, focusing on early growth stage technology and tech-enabled companies. With a history dating back to 1997, the firm has been dedicated to leading in real estate investment management. The firm's investment strategies are characterized by a proactive and flexible outlook, enabling it to anticipate changes in the investment environment. Additionally, Greenfield Partners has built a strong team with unparalleled dedication, fostering a unified group of talented individuals committed to improving the investment process. With over 20 years in business, the firm has demonstrated its ability to implement innovative strategies in a principled way, earning the implicit trust of its investment partners to protect their interests and maximize the value of their holdings, regardless of shifting financial conditions. This underscores Greenfield Partners' commitment to disciplined investment practices and its ability to adapt to market dynamics while creating enduring value for its partners.
Magma Venture Partners
Year of Inception: 1999
Stage: Seed, Series A, Series B, Series C, Series D
Focus: Software & Internet,AI & Machine Learning
Notable Portfolio: Waze, Provigent, DesignArt, Wintegra, Trivnet
Magma Venture Partners, a prominent Venture Capital fund founded in 1999, has emerged as a trailblazer in identifying and nurturing new category leaders in communications technology, social media, and semiconductors. The fund's strategic pursuit of groundbreaking technology and substantial market opportunities has been instrumental in its ability to identify and garner new category leaders in various sectors. Notably, Magma Venture Partners has made 130 investments, showcasing the fund's ongoing commitment to fostering innovative developments in the tech industry. This investment activity reflects Magma's dedication to supporting outstanding entrepreneurs and exceptional teams while addressing substantial market opportunities.
Year of Inception: 2018
Stage: Seed, Series A, Series B, Series C, Series D
Focus: Software & Internet
Notable Portfolio: Gomboc.ai, Silk Security, 8fig
Hetz Ventures is dedicated to nurturing and supporting Israeli start-ups at the forefront of deep technology. Since its establishment in 2018, Hetz Ventures has emerged as a global-facing VC with a team of investment professionals and robust connections to European investors. The firm's entrepreneurial approach empowers highly talented founders, providing active support from due diligence to future financing rounds. Leveraging an international network of corporate executives and investors, Hetz Ventures fosters innovation and drives market leadership for its portfolio companies. With a focus on early and late-stage venture investments, the firm has made significant strides, with 34 investments and 3 successful exits.The firm's investment strategies are highly thesis-driven, with a focus on early-stage ventures in Engineering, Cybersecurity, Data, and a mix of Fintech, Climate Tech, Retail, and Vertical SaaS. Hetz Ventures' commitment to contributing beyond startup capital is evident through their active involvement in community initiatives, diversity pledges, and sustainability challenges, showcasing their dedication to nurturing innovation and making a positive impact in the Israeli tech ecosystem.
Year of Inception: 2018
Stage: Seed, Series A, Series B, Series C, Series D
Focus: Health,Software & Internet
Notable Portfolio: Medisafe, Innovalve, Magenta, Cynerio, Beyeonics Vision
Alive Ventures, a pioneering mid-to-late stage HealthTech fund based in Tel Aviv, is dedicated to leveraging an exclusive ecosystem of strategic partnerships with leading hospital chains, HMOs, and financial institutions to support and accelerate portfolio companies in their clinical and commercial expansion. Alive Ventures has quickly earned recognition for its impactful investments in transformative HealthTech technologies. The fund focuses on identifying and nurturing high-growth companies in the fields of HealthTech, Digital Health, Medical Devices, and Healthcare. The fund's commitment to deep impact measurement and a gender lens at every step of the investment process underscores its dedication to creating positive and lasting change. This strategic focus on impactful investments reflects Alive Ventures' unwavering commitment to fostering innovation, improving healthcare outcomes, and making a meaningful impact on global health and well-being.
Year of Inception: 2017
Stage: Seed, Series A, Series B, Series C, Series D
Focus: Community,Software & Internet
Notable Portfolio: Rapyd, Omnix Medical, Sweetch
Tal Ventures is renowned for its active pursuit and robust support of start-up companies with experienced and visionary leadership poised to make a profound impact through their technologies. The firm's investment strategies are characterized by a horizontal approach across various industries and a vertical investment spectrum encompassing different stages of development, aimed at maximizing both stability and capital growth. Tal Ventures was founded by Eyal Dior and Ron Ostroff, both possessing extensive entrepreneurial experience and a track record of active company management, thus ensuring a deep understanding of the challenges and opportunities faced by startups. Tal Ventures' dedication to providing strategic guidance, financial support, and access to valuable networks underscores its pivotal role in propelling the success of its portfolio companies.
Year of Inception: 1987
Stage: Seed, Series A, Series B, Series C, Series D
Focus: Industry,Software & Internet
Notable Portfolio: Quali, Inneractive, Siklu, N-Trig, eASIC, Taboola
Evergreen Venture Partners, a distinguished venture capital firm established in 1987, has played a pivotal role in shaping Israel's technology landscape through its strategic investments in early and growth stage companies. With a strong focus on sectors such as communications, internet, media, software, healthcare, pharmaceuticals, and medical devices, Evergreen's $700 million venture capital funds under management represent one of the largest portfolios in Israel, reflecting the depth and breadth of its investments. The firm's investment strategy revolves around positioning itself in various segments of each market to create a well-diversified and balanced portfolio of companies, thereby facilitating substantial growth and success for its portfolio companies. Evergreen's professional investment team, with extensive field expertise, provides crucial support to entrepreneurs and portfolio companies throughout their life cycle, guiding them from the nascent stages to becoming market leaders. The firm's disciplined investment strategy, spanning over 14 years of investment experience, has been instrumental in delivering successful exits and superior returns, positioning Evergreen Venture Partners as a leading force in Israel's venture capital landscape.
Year of Inception: 2017
Stage: Seed, Series A, Series B, Series C, Series D
Focus: Health,Software & Internet
Notable Portfolio: Hyliion, Otoma, Workiz, Optibus
New Era Capital Partners is a pioneering early-growth venture fund with a distinct focus on ESG (Environmental, Social, and Governance) technology investments, guided by the principles of responsible investments. The firm is dedicated to supporting exceptional entrepreneurs in building technology-focused enterprises poised to become global leaders. New Era Capital Partners' investment committee follows a meticulous due diligence process, aiming to understand the team, solution, product, technology, market, and expected deal economics. The firm's commitment to ESG-oriented investments and its status as the first Israeli VC to embrace the United Nations Principles for Responsible Investment underline its dedication to ethical and sustainable investment practices. Moreover, New Era Capital Partners aims to assist Israeli companies in scaling globally, providing strategic and investment partnerships, and nurturing their growth into global citizens. The firm's approach to strategic problem-solving sessions with founders reflects its unique value proposition in supporting the growth and success of its portfolio companies.
Year of Inception: 2018
Stage: Seed,Series A
Focus: Finance & Crypto,Software & Internet
Notable Portfolio: Axiom, Big Panda, Zesty, Hourly, Firmbase
S Capital is dedicated to leveraging its extensive knowledge and network to scale extraordinary companies from the ground up. The firm focuses on deep technology, cybersecurity, fintech, enterprise software, SaaS tech, machine learning, and data analytics and is committed to providing Israeli entrepreneurs with a unique set of tools to excel in the market. The firm's approach emphasizes the significance of a strong support system, real-world significance, and the value of proximity in fostering successful ventures. S Capital's dedication to nurturing the success of its founders and providing an intimate environment for company-building underscores its commitment to fostering growth and innovation within the Israeli entrepreneurial ecosystem.
Olive Tree Ventures
Year of Inception: 2015
Stage: Series C,Series D
Focus: Health,Consulting & Services
Notable Portfolio: TytoCare, Lemonaid Health, Emedgene, Scopio
Olive Tree Ventures is a distinguished Tel Aviv-based venture capital firm that has recently closed a new fund totaling $170 million, focusing primarily on digital health investments. The firm's strategic shift towards digital health investments aligns with the growing significance of digital products in the global healthcare ecosystem. With a unique focus on digital health technology, OTV aims to facilitate the growth of digital health companies and identify the market leaders of tomorrow. OTV's expertise, laser-sharp focus, and dedication to identifying disruptive ideas in the digital health arena position it as a pivotal player in fostering healthcare innovation and saving lives through impactful investments.
Closing Thoughts on Venture Capital Firms (VCs) in Tel Aviv
In essence, the symbiotic relationship between startups and venture capital firms is the foundation of Tel Aviv's thriving entrepreneurial environment. As the city grows as a global innovation engine, venture capital's role in fostering, sustaining, and expanding new firms remains critical; propelling development, prosperity, and revolutionary change for Israeli startups on a worldwide scale.
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