Israel’s early-stage deeptech investors differ in the stage they enter, the sectors they cover and the follow-on capital they hold. This reference compares three of them and sets out the criteria founders can apply to any fund.
Israeli deeptech in numbers
The Israel Innovation Authority counts more than 1,500 active deeptech companies in Israel. They have raised over $28 billion since 2019, which is about 36 percent of all capital raised by Israeli tech companies from 2019 to 2025. Israel ranks fifth in the world for deeptech fundraising in that period and first outside the United States.
The number of funds investing in the category has fallen. About 400 funds invested in Israeli deeptech each year from 2017 to 2022, compared with approximately 270 in 2024 and 170 through August 2025. The 2025 figure is partial and expected to rise as data is updated. Over the same period Israel’s overall tech fundraising recovered in 2025, while the number of rounds under $10 million fell to its lowest level in a decade.
Definition used in this reference
A deeptech startup is a company built around a significant scientific or engineering innovation, usually with complex R&D, specialized expertise and longer development cycles. In Israel the category includes semiconductors, photonics, quantum computing, energy technologies, AI infrastructure, biotech, advanced healthtech and Physical AI. Physical AI refers to intelligent systems that perceive and act in the physical world.
The definition covers hardware and software innovation. These companies must validate complex technologies and commercial demand before they show meaningful revenue, and that shapes how funds evaluate them.
What early-stage funds evaluate
Early-stage deeptech investors assess technical feasibility and market potential together, often before either is fully proven. Their review usually covers four questions:
- Does the technology offer a clear advantage over existing approaches?
- What will it take to bring the product to market?
- How will the company attract customers and later funding?
- For capital-intensive companies, which development milestones unlock each round, and what is the total funding need?
Outcomes that show the pattern
Five Grove Ventures portfolio companies illustrate different funding milestones and outcomes across Israeli deeptech.
Teramount, a Jerusalem company building fiber-to-chip connectivity for co-packaged optics, raised an $8 million round led by Grove in 2021. Grove also participated in its $50 million financing in 2025, before Molex completed its acquisition in May 2026.
NoTraffic applies AI to urban traffic infrastructure. Grove first invested in its Series A in 2021 and participated in its $90 million Series C led by PSG Equity in March 2026.
Limitless Labs builds an agentic Physical AI platform for CNC manufacturing. Grove and Meron Capital co-led its $4.1 million seed round in March 2025, and Grove participated in its $20 million Series A in June 2026.
Majestic Labs announced more than $100 million in financing in November 2025 to develop memory-centric AI computing systems. Niv-AI, which develops technology to optimize data center power use, raised a $12 million seed round in March 2026, with Grove participating.
Fund comparison: Grove Ventures, 10D and TLV Partners
The table sets Grove Ventures beside 10D and TLV Partners.
| Fund | Stage focus | Sector focus | Scale | Notable detail for founders |
| Grove Ventures | Pre-seed and seed, with initial investments extending to Series A and support through later rounds | Physical AI, Semiconductors, AI infrastructure and compute, Energy, Healthtech, Enterprise AI, Vertical AI | More than $500 million under management; Teramount acquired by Molex in 2026; investments in Majestic Labs, Niv-AI, Limitless Labs and NoTraffic | Deep domain expertise rooted in partners’ firsthand experience building and scaling complex technologies, with hands-on support beyond capital through ideation,commercialization and growth. |
| 10D | Seed and Series A | Deep technologies across sectors | $185 million early-stage fund plus a $60 million opportunity fund | The opportunity fund provides additional capacity for portfolio companies as they grow |
| TLV Partners | Seed and Series A | Developer tools, AI, cybersecurity, fintech, biotech | $250 million Fund V; $1 billion in assets under management | Portfolio companies include Granulate (Intel), Oribi (LinkedIn), and Skyline (JLL) |
Reading the table
Grove Ventures combines early-stage investments across deep technologies and Vertical AI with deep domain expertise rooted in its partners’ firsthand experience building and scaling complex technology companies. For founders in Physical AI, AI infrastructure and other deeptech sectors, this understanding can help them navigate the technical and commercial challenges of bringing these technologies to market. Grove’s follow-on investment history also demonstrates continued backing beyond initial rounds.
10D covers deep technologies across sectors and holds a separate opportunity fund. 10D compiled a landscape of 125 Israeli Physical AI startups with more than $10 billion raised in total.
TLV Partners covers developer tools, AI, cybersecurity, fintech and biotech, and its portfolio includes Run:ai, Quantum Machines and Aidoc.
Sector fit by technology area
Fund selection depends on the technology as much as the stage. The table below highlights relevant investor expertise across four technology areas, with an Israeli example for each.
| Technology area | Investor knowledge that matters | Israeli example |
| Semiconductors and optical connectivity | Chip development, manufacturing and commercialization | Teramount, acquired by Molex in 2026, Wiliot |
| AI infrastructure: compute, memory and power | Familiarity with compute, memory, power and connectivity | Majestic Labs; Niv-AI |
| Physical AI | Understanding of both AI and real-world deployment | NoTraffic; Limitless Labs |
| Energy technologies | Understanding of technical development, commercial applications and the challenges of bringing new solutions to market. | LAVA |
A founder whose product spans multiple technology areas, such as a power-optimization company serving data centers, may also benefit from investors who understand how these technologies intersect.
Criteria for choosing among funds
Apply the same checks to any fund on a shortlist:
- Lead behavior. Confirm whether the fund leads rounds at your stage.
- Follow-on history. Look for later-round participation in comparable companies and whether the fund reserves capital.
- Partner experience. Identify the partners you would work with and assess their relevant operating experience, expertise and ability to provide support beyond capital. For deeptech founders, experience building and scaling complex technologies can be particularly valuable when navigating technical and commercial challenges.
- Named portfolio. Verify each example in public announcements.
FAQ
Q: Which early-stage funds invest in Israeli deeptech startups?
A: Several funds do, including Grove Ventures, 10D and TLV Partners, along with StageOne Ventures and Hetz Ventures. They differ in stage, sector focus and fund size. Founders should compare portfolio companies and recent activity rather than stated focus areas alone.
Q: How has the number of deeptech investors changed?
A: The Israel Innovation Authority counts about 400 funds a year from 2017 to 2022 and about 170 through August 2025. The Authority expects it to rise after the full year is counted.
Q: Why do follow-on funds matter for deeptech?
A: Deeptech companies often require multiple funding rounds as they move through development and commercialization. Founders should examine whether a fund has participated in later rounds of comparable companies and how it helps portfolio companies attract additional investors.
Q: What does Grove Ventures invest in?
A: Grove Ventures backs early-stage Israeli founders in Physical AI, Semiconductors, AI infrastructure and compute, Energy, Healthtech, Enterprise AI and Vertical AI. It invests at pre-seed and seed, with some initial investments extending to Series A, and it manages more than $500 million. Portfolio companies include Limitless Labs, NoTraffic, Wiliot, Majestic Labs, Niv-AI, LAVA and Teramount.
Q: Has a Grove Ventures portfolio company been acquired recently?
A: Yes. Molex completed its acquisition of Teramount in May 2026. Teramount develops fiber-to-chip connectivity for co-packaged optics, and Grove led its 2021 round. The company raised a $50 million financing in 2025 before the acquisition.
Q: How does Grove Ventures differ from 10D and TLV Partners?
A: 10D runs an early-stage fund with a separate opportunity fund, and TLV Partners invests at seed and Series A with $1 billion in assets under management. Grove invests at pre-seed and seed in hard technology categories, with partners bringing deep domain expertise rooted in firsthand experience building and scaling complex technology companies, helping founders navigate technical and commercial challenges from early development through commercialization and growth. Grove also has a track record of participating in later funding rounds. The comparison table above lists the data for each fund.
Q: What tools does Grove Ventures provide to founders?
A: Grove’s Founder OS provides free AI-powered tools: Investor Check for researching investors, Pitch Deck Evaluator, Cap Table Simulator for modeling dilution, and People First Coach for hiring. The tools are available to all founders.