When it comes to launching a venture capital firm in one of the world’s most dynamic tech hubs, Gadi Isaev and his team at VentureIsrael are doing it with strategy, clarity, and a whole lot of experience under their belts.
With the official launch of VentureIsrael 2, the firm’s second deep tech fund, Isaev sat down to share the journey behind the fund, his thoughts on investing, and how they’re backing the next generation of breakthrough Israeli startups.
From Startup Community Builders to VC Leaders
Gadi Isaev’s journey into venture capital didn’t begin with a boardroom or spreadsheets—it started with community.
Back in 2012, he and his partner Rafael Gold co-founded the Jerusalem Startup Hub, the city’s first collaborative coworking space for innovators.
Over time, it evolved into a central meeting point where founders, investors, academics, and policymakers came together.
As interest in Israeli startups grew globally, they launched JSCapital—a platform connecting international investors with Israel’s thriving innovation market.
That foundation led to dozens of deals in sectors like AI, fintech, digital health, and cybersecurity.
By 2020, they were ready to go bigger. And so, VentureIsrael was born, launching its first fund mid-pandemic with resilience and deep-tech focus at its core.
What Sets VentureIsrael Apart as a Fund
So what exactly is VentureIsrael today? According to Isaev, it’s an early-stage deep tech VC fund that isn’t tied down by a specific market or sector.
Instead, the focus is on three powerful ingredients: cutting-edge technology, speed to market, and people.
The firm typically invests at the Seed to Series A stage, looking for teams with the potential to scale fast in a rapidly evolving world. And they’re not afraid to back bold ideas.
In fact, Isaev says unconventional thinking is baked into their DNA.
Their first fund supported 18 startups and even earned a spot among Israel’s top 10 most active VC firms that year.
With the second fund already closing four deals, the goal is to grow a diverse portfolio of 20 promising companies.
Betting Big on Deep Tech and Timely M&A
Isaev says their strategy is all about timing—and understanding where the market is headed, especially when it comes to mergers and acquisitions.
The sectors getting their attention now? Cybersecurity, AI infrastructure, developer tools, robotics, and digital health.
But they’re also carving out room for “FutureTech”—emerging innovations that are market-ready today.
Think quantum technologies, neuroscience, space tech, and synthetic biology.
Isaev emphasizes that it’s not just about having a great idea or strong team.
The timing of the deal must be just right—not too early, not too late.
A premature investment can be more harmful than missing the boat altogether.
A Light-Touch, High-Impact Approach to Founder Support
Interestingly, Isaev doesn’t believe in micromanaging startups.
“Too much proactive help can actually derail founders,” he says.
Instead, they focus on what truly moves the needle: bringing in new capital.
That’s where VentureIsrael comes in strong—opening doors to new investors who can commit even bigger checks.
Another major strength? Access to world-class academic knowledge.
The firm has built a powerful scientific advisory board made up of top professors in fields like quantum communication, cryptography, and material sciences.
Whether a startup needs a quick consultation or a full research lab partnership, VentureIsrael makes it happen.
The LPs Are Entrepreneurs Too
One of the unique elements of VentureIsrael is its limited partner (LP) base.
It’s not made up of anonymous financiers, but fellow entrepreneurs—people who’ve built companies themselves.
These LPs include co-founders, CTOs, and executives from some of the world’s most recognized startups and tech companies.
Some come from more traditional industries like pharma and e-commerce, but they all share that same builder’s mindset.
When a portfolio company needs advice or a warm intro, these LPs are just a phone call away—and they actually want to help.
The Founders They Bet On
There’s no strict mold for the kind of founder VentureIsrael backs.
What matters most, Isaev says, is integrity, empathy, and grit.
He values long-term relationships and watches how founders evolve over time, rather than judging based on first impressions.
The right mix of assertiveness and humility goes a long way.
Each founding team in their portfolio brings something different—some are bold risk-takers, others are methodical strategists.
But all of them share a relentless drive to build something meaningful.
A Closer Look at the Portfolio
Isaev highlighted a few exciting companies from their second fund—and one notable success from their first.
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Remondo is tackling ultra-high-resolution satellite imagery at a fraction of the usual cost. They’re still in stealth, but Isaev hints they’ll be making headlines soon.
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Sweetch is using AI and emotional intelligence to transform digital therapeutics. The firm joined forces with top med-tech players like Philips to invest.
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SaolaAI created a self-evolving QA platform based on real user behavior. Isaev says they discovered the company while it was still flying under the radar—and already loved by early adopters.
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Nuvo is making waves with INVU, an FDA-cleared remote pregnancy monitoring tool that’s already landed on TIME’s Best Inventions of 2024 list.
And from Fund I, Isaev proudly pointed to Wib, an API cybersecurity startup that recently exited via acquisition by F5 Networks.
It all started when Isaev first backed the founder’s earlier company, Splitit, which later became one of Israel’s most successful IPOs in Australia.
That founder is now a Venture Partner at VentureIsrael.
Where They’re Looking Next
So what’s catching VentureIsrael’s eye over the next five years? Isaev says cybersecurity and AI infrastructure remain the biggest bets.
But in the broader “FutureTech” category, the most exciting opportunities lie at the intersection of disciplines—where innovations in science, engineering, and data come together to create entirely new industries.
It’s that kind of convergence that they believe will drive the most explosive growth in the next decade.