We make pre-seed investments with high conviction

Despite the great deal of uncertainty inherent to the pre-seed stage, our process reflects our high-conviction approach. We aim to understand the size and timing of the opportunity, unique insights the founders have about the market and around their solution, and their ability to build a significant venture.

Our process typically starts with an internal deck review to gauge initial interest. Next, we arrange an introductory meeting to get to know each other, fill in information gaps, and determine if it's worthwhile to proceed.

If we decide to move forward, we schedule meetings with additional team members and begin a due diligence process. This includes a deep dive into the market opportunity, the solution, the pre-seed plans and the inflection points for the next round, and conversations with relevant stakeholders such as potential customers, co-investors, follow-on investors, and domain experts. At this point, we'll want to align with the founders on the key deal terms and conduct a number of reference calls on the founders. We encourage you to do the same.

The timeline of our investment process can vary from a few days to weeks, depending on the specifics of the venture and how the process evolves. Throughout this period, we commit to doing our best to move quickly and maintain clear communication about our progress and next steps.

We like to invest as early as possible, usually in a company’s first institutional funding round. That said, we do allocate a small portion of our fund to non-core investments, including seed rounds where we have previous relationships with the founders or the lead investors and we feel it’s an opportunity we just can’t miss.

We reserve capital for follow-on funding in our portfolio companies and usually exercise our pro-rata in 1-2 subsequent rounds.

We are sector-agnostic and our portfolio includes investments in various sectors such as B2B SaaS, Climate, Compliance, Defense, Devtools, Fintech, Healthcare, Supply Chain and more. Our curiosity drives us and we are always open to learning about markets and industries that we haven’t necessarily invested in before.

We are currently investing out of our second fund. We are consistently recognized as one of the most active early-stage investors in Israel, usually making about 10 new investments a year.

We are as involved as the founding team wants us to be—sometimes this means providing hands-on support, and sometimes it means staying out of the way. We understand how busy founders are and always strive to be respectful of their time.

We are typically helpful with fundraising, reviewing and giving input on materials, making introductions to relevant investors, and providing ongoing advice throughout the process.

We also assist with business development connections through our ever-growing network. While we occasionally help with recruiting, this is more anecdotal.

We sometimes take a board member/observer seat. At the pre-seed stage, our focus is less on governance and more on helping the company develop a board “rhythm” as a best practice for accountability and general management. In any case, we are always available as a sounding board to exchange ideas and thoughts.

We’ve raised a little over $70m in AUM across two funds and SPVs. We are currently actively investing from our second $35M fund.

Our LP base is mostly high-net worth individuals and family offices. We do have some institutional funds of funds, VCs and operators investing in our funds as well.

Most of our investments are done via post-money SAFEs. We find it easier and quicker than other options. We are open to doing priced rounds as well. We are unlikely to invest in a pre-money SAFE for the same reasons YC have stopped recommending the use of this vehicle.

We target ±10% ownership with each pre-seed investment we make. We have exceptions to this target,  but well, these are exceptions.

- Pro-Rata - We usually invest in 1-2 subsequent rounds and reserve funds for it.
- Information Rights - We’d like to be in the loop and make sure we have the info we need to report to our LPs.
- Reverse Vesting - In our legal DD, we want to make sure the company is set up right in case one of the founders leaves (hopefully this will not happen).
- ESOP - We like the company to reserve ESOP for key hiring, advisors and in some cases when there is mutual agreement that the founding team is still incomplete, to reserve equity for additional co-founders to bring in.

You can reach us directly by fill out this form and share your deck. We promise to review each application and get back to you whether it would be relevant to meet and learn further or not.