VentureIsrael Founders Announce $25M Second Fund

Following the success of its first fund, VentureIsrael is launching a second \$25 million fund to invest in early-stage startups across sectors including cybersecurity, AI infrastructure, space tech, quantum technologies, and more.

VentureIsrael founders Gadi Isaev and Rafael Gold have announced the launch of VentureIsrael Fund II, a $25 million venture capital fund focused on seed, Series A, and Series B investments. The fund will back around 20 startups with investments of up to $1 million per company, with potential for follow-on funding. It will focus on startups founded by Israelis and headquartered in Israel, but targeting global markets.

Key sectors of focus include cybersecurity, AI infrastructure, developer tools, digital health, and frontier technologies that are already ripe for commercialization—such as quantum computing, space tech, neuroscience, and synthetic biology.

VentureIsrael’s first $15 million fund, launched during the COVID-19 pandemic, was among the ten most active VC funds in Israel in terms of number of deals during its investment period. Notable investments include:

* Cydome, which develops cybersecurity solutions for the maritime industry;

* Wib, a cybersecurity firm acquired by F5 Networks;

* HEQA Security, which builds quantum physics-based encryption technology;

* Neurobrave, which developed a “neuro-therapeutic coach” in collaboration with Garmin, already in use by thousands of IDF soldiers;

* Fincom, an anti-money laundering company that secured follow-on investment from Nasdaq Ventures and Macquarie Group.

Isaev and Gold have been working together in the Israeli capital markets and VC space for over a decade. The fund’s LPs include tech founders, CTOs, and senior executives from leading startups and global tech firms. Some are managing partners at VCs based primarily in the U.S., while others come from more traditional industries such as retail, pharma, e-commerce, and manufacturing.

The second fund has already made four initial investments:

* Remondo, offering groundbreaking satellite imagery at very high resolution with disruptive pricing;

* Sweetch, the first company to combine AI with Emotional Intelligence (EI) to create digital solutions grounded in behavioral science, backed by investors including Philips and major medical institutions;

* SaolaAI, a fully autonomous, maintenance-free quality control platform based on real user behavior insights, already used by some of the fund’s advisors and partners;

* Nuvo, an FDA-approved remote pregnancy monitoring system. Its INVU platform seamlessly measures critical biometric data of mother and fetus and was named one of TIME’s Best Inventions of 2024.

The fund is supported by a broad scientific advisory board, including leading professors in fields such as cryptography, advanced materials, quantum communication, and neuroscience. These experts are available to provide academic guidance to portfolio companies and even assist in establishing dedicated labs within Israeli universities.

Gadi Isaev, Managing Partner, VentureIsrael: “We define ourselves as ‘founder-friendly.’ We prioritize the entrepreneurs and the success of the startups—whether the market is booming or in a downturn. Our philosophy is to back companies through our network of strategic and financial investors and experts, while avoiding over-involvement that can sometimes hinder rather than help. We’re a fund with 100% entrepreneurial DNA.”

Rafael Gold, Managing Partner, VentureIsrael: “We’re not afraid to take technological risks. There are hundreds of VCs in Israel, but when it comes to investing in truly complex technological segments, from space tech to synthetic biology, especially at the early stage, the number of active players narrows drastically. We’re proud to be part of this ecosystem, thanks in part to our access to unique academic and technological expertise, and to support startups in their earliest days.”

Credit: Diana Sosonov