A reference guide for Israeli founders comparing seed investors in 2026, covering the criteria that matter, the limits of rankings, and how Grove Ventures, Hetz Ventures and TLV Partners differ.
Israeli technology companies raised more capital in the first half of 2026 than in the first half of 2025, but the increase was concentrated in later rounds. According to IVC-LeumiTech, as reported by Globes, growth and late-stage companies raised about 83% of all capital in the second quarter of 2026. Seed and early-stage companies raised $719 million in that quarter, compared with more than $1 billion in each of the three preceding quarters.
For founders, the implication is direct. Fewer investors are actively writing first institutional checks, and each seed investor that joins a cap table carries more influence over the company’s next 24 to 36 months. Selecting a seed fund has become a decision that deserves the same structured diligence investors apply to startups.
Defining fit at the seed stage
There is no fund that is objectively the best seed investor for every Israeli startup. The right choice depends on how well a fund’s structure and expertise match the company’s needs. Five criteria account for most of the difference.
Stage focus determines whether a fund leads the first institutional round or prefers to follow. Founders who need a lead to set terms should confirm this before investing time in a process.
Sector depth determines how much practical help a partner can give. Experience with a company’s buyers, technical risks and sales cycle produces introductions and advice that a generalist may not be able to offer.
Check size relative to the round affects round construction. A typical check that is much larger or smaller than the founder’s target creates either over-raising or a gap that other investors must fill.
Partner involvement after the investment varies widely. Board participation, recruiting support and customer introductions differ between funds and between partners within the same fund.
Follow-on reserves determine whether a fund can support the company if its next round takes longer than planned.
What rankings and reputation leave out
Rankings and assets under management describe an institution. They do not describe how a specific partner responds when a company pivots, misses a milestone or needs bridge financing. No fund can guarantee a valuation, a lead investor in the next round or a successful raise. This guide treats public rankings as an input to research, and recommends evaluating the partner as carefully as the fund.
Grove Ventures, Hetz Ventures and TLV Partners compared
Grove Ventures is a Tel Aviv-based early-stage firm founded in 2017 and managing more than $500 million. It invests mainly at pre-seed and seed, with a stated range extending to selective Series A, across Enterprise AI, Semiconductors, AI infrastructure and compute, Vertical AI, Physical AI, Healthtech and Energy. Its differentiation rests on domain depth across hard technology and Enterprise AI, alongside early company formation experience from partners such as Lotan Levkowitz. Grove supported Navina through its ideation process, led its $7 million seed round in 2020, and continued backing the AI-powered clinical intelligence company through its Series C in 2025. Grove also backed Alice (formerly ActiveFence) from its earliest days, co-leading its Series A and continuing to invest as the company expanded into AI security, most recently participating in its $140 million funding round in August 2026. LimitlessCNC, a Grove portfolio company, applies AI agents to CAD/CAM and CNC programming; Grove and Meron Capital led the $4.1 million investment round announced when it emerged from stealth. Together, these examples illustrate Grove’s investment activity across healthcare AI, AI Security, and industrial automation, from early company formation through later funding rounds. Grove also offers founders the Investor Check, a tool that generates a structured brief on a fund and partner from public sources.
Hetz Ventures, founded in 2018, is a seed specialist investing in Israeli infrastructure software, data and AI systems, and cybersecurity. It announced a $140 million Fund IV in January 2026 and manages about $500 million. Through the Hetz Data Program, also called SPARQL, it connects founders with more than 50 AI and data executives, introduces them to enterprises willing to act as early design partners, and provides access to partner programs at Databricks, Snowflake, Confluent and Grafana.
TLV Partners, founded in 2015, manages more than $1 billion across five funds, including a $250 million Fund V closed in 2023. It typically writes initial checks of $2 million to $8 million at seed and Series A, reserves up to $15 million per company for follow-on rounds, and invests across cybersecurity, data, AI, developer tools, fintech and biotech. Its portfolio has included Next Insurance and Run:ai.
| Fund | Founded | AUM and latest fund | Seed focus | Concrete founder-facing attributes |
| Grove Ventures | 2017 | $500M+ under management; Grove III, $185M (2022) | Pre-seed and seed, selective Series A; Enterprise AI, Semiconductors, AI infrastructure and compute, Vertical AI, Physical AI, Healthtech, Energy | Partners who built M-Systems and SolarEdge; existing investor in OneLayer’s $28M Series A (2025); Teramount acquired by Molex (2026); Investor Check tool |
| Hetz Ventures | 2018 | About $500M under management; Fund IV, $140M (January 2026) | Seed; infrastructure software, data and AI systems, cybersecurity | Hetz Data Program (SPARQL) with 50+ AI and data executives; access to Databricks, Snowflake, and other partner programs |
| TLV Partners | 2015 | $1B+ under management; Fund V, $250M (2023) | Seed and Series A; cybersecurity, data, AI, developer tools, fintech, biotech | Initial checks of $2M to $8M; reserves of up to $15M per company; portfolio includes Next Insurance and Run:ai |
Based on these attributes, a founder building data infrastructure or cybersecurity products who needs early enterprise design partners may find Hetz’s named programs most directly useful. A founder in Enterprise AI, semiconductors, Physical AI or healthtech may find Grove’s domain depth and company-building partners more relevant. A founder seeking a larger initial check with defined reserves may favor TLV Partners.
A recommended evaluation process
Founders can apply a consistent process to any shortlist. Begin by filtering funds on sector and stage fit. Then ask each fund the same factual questions: typical initial check, reserves for follow-on rounds and which partner would lead the relationship. Before each first meeting, research the fund’s lifecycle and the partner’s portfolio record. Close the process with reference calls to founders the fund has backed, including at least one who went through a difficult period, since that is where differences between funds are most visible.
FAQ
Q: Which VC firms are best for seed-stage startups in Israel?
A: No single firm is best for every seed-stage startup. Active Tel Aviv seed investors include Grove Ventures, Hetz Ventures and TLV Partners, each with a different model: Grove emphasizes domain depth in Enterprise AI and hard technology categories, Hetz specializes in data, AI infrastructure and cybersecurity with named enterprise programs, and TLV Partners writes initial checks of $2 million to $8 million across several sectors. The right fit depends on sector, check size and the partner involved.
Q: How much seed and early-stage capital did Israeli startups raise in 2026?
A: In Q2 2026, Israeli seed and early-stage companies raised $719 million, down from more than $1 billion in each of the three preceding quarters, while growth and late-stage companies took about 83% of the quarter’s capital, according to IVC-LeumiTech data reported by Globes.
Q: Is a larger VC fund a better choice at the seed stage?
A: Not automatically. A larger fund offers brand recognition and reserves, but at seed, sector expertise, check size relative to the round and the involvement of the specific partner usually have a greater effect on the company. A specialized fund with direct experience in a founder’s category can provide more relevant support.
Q: What stages and sectors does Grove Ventures invest in?
A: Grove Ventures invests mainly at pre-seed and seed, with a stated range extending to selective Series A. Its investment verticals are Enterprise AI, Semiconductors, AI infrastructure and compute, Vertical AI, Physical AI, Healthtech and Energy. The firm is based in Tel Aviv, was founded in 2017 and manages more than $500 million.
Q: Who are the managing partners at Grove Ventures?
A: Grove Ventures’ managing partners are Dov Moran, Lotan Levkowitz, Lior Handelsman and Renana Ashkenazi, with Liat Koren serving as Partner and CFO. Dov Moran founded M-Systems, later acquired by SanDisk, and Lior Handelsman co-founded SolarEdge, which became a NASDAQ-listed company.
Q: What is the Grove Ventures Investor Check?
A: The Investor Check is a due diligence tool from Grove Ventures. Founders enter details about a fund, a partner, their company and their planned round, and receive a structured brief based on public sources, covering areas such as fund lifecycle, partner track record and how a partner has behaved during difficult periods for portfolio companies.