As many of you may have heard, we recently announced our second fund. With every new beginning there comes a time for reflection. In that effort, we took a close look at the numbers from our first fund, and are excited to share them with you below.
In TLV 1, we invested in 13 companies (only seven have been made public at the time of this post). It was always our intention to invest in a more focused portfolio of 12–14 companies, in order to provide the requisite amount of capital and attention to each portfolio company throughout their journey.
We led the heavy majority of deals that we invested in and our average due diligence process was three weeks long. This was calculated per company, from the date of first meeting the company until a term sheet was signed.
We enjoy working both with first-time and serial entrepreneurs and had a 70–30 split between the two in our first fund. It’s interesting to see the breakdown of level of education of our founders, not because we believe that level of education directly correlates to the eventual success of a startup, however subject matter expertise can certainly be beneficial, especially when it comes to advanced technological development.
Of our 13 investments, we have had the pleasure of working with 31 exceptional founders. We are proud that in 23% of our companies we have female entrepreneurs at the CEO/CTO position.
It’s important to note that we are indifferent to the age of our entrepreneurs -some of them are in their mid 20s and others are closer to 50. Passion, flexibility of mind and eagerness to learn are what we look for in our entrepreneurs, and having prior experience is a cherry on top.
Ten of thirteen investments were made in either DevOps/Cloud Infrastructure , AI or Cyber Security startups. This is a result of strong theses we have for these industries, as well as the strength of Israeli entrepreneurs in these sectors.
That said, we love to invest in emerging technologies and markets. In fund 1, we invested in a marketing technology company, a construction technology company, digital healthcare company and an InsurTech company.
We’ve already started to invest out of TLV II, and we look forward to sharing our activity. Our experience from TLV I has taught us that market conditions and emerging technologies will play as big a role in the final outcome of the fund than our thoughts going in.