Venture capital firm, TLV Partners has unveiled a new $250 million fund, aimed at supporting early-stage startups founded by Israelis.
The decision to primarily focus on the United States as the base for these startups comes as concerns loom over potential reforms to the Israeli judicial system.
With this fifth fund, TLV’s assets under management will surpass $1 billion.
The firm plans to invest between $4 million and $8 million in approximately 25 startups specializing in sectors like software, fintech, biotech, cybersecurity, and artificial intelligence.
TLV Partners, known for follow-up investments of up to $20 million, has previously backed 60 Israeli companies and achieved successful exits with 10.
TLV’s managing partner, Rona Segev, noted the growing interest in Israeli companies and technologies.
However, she expressed concerns about the proposed judicial reforms and their potential impact on the tech landscape.
The suggested changes, which include increased government influence in judge selection and reduced powers of the Supreme Court, have sparked widespread protests and contributed to a 70% decline in tech fundraising in the first half of the year.
Segev revealed that these reforms have led to a significant number of relocations among TLV’s portfolio companies.
Many Israeli firms are incorporating outside of Israel, with all TLV investments in 2023 being incorporated in Delaware despite maintaining research and development operations in Israel.
While the $250 million fund is intended for Israeli entrepreneurs, Segev said that due to the current political climate, the majority—around 90%—will likely go to non-Israeli companies.
The trend of entrepreneurs establishing or incorporating their companies outside of Israel shows no signs of reversing.
