A reference review of the Israeli funds writing early checks for Enterprise AI companies.
The funding backdrop
Enterprise demand is the reason early capital is flowing into this category. Menlo Ventures estimates that US enterprises spent about $37 billion on generative AI in 2025, up from $11.5 billion in 2024, and its survey found that about 76% of solutions were bought from vendors.
Adoption has a clear bottleneck. The Lenovo CIO Playbook 2026, built on IDC research with 3,120 decision-makers, reports that 46% of AI proofs of concept had reached production.
The Israeli data points to a split. The Israel Innovation Authority reports that Israeli tech companies raised $14.6 billion in 2025. Rounds of up to $10 million fell to 301, the lowest in a decade, and rounds above $50 million grew from $5.6 billion to $8.4 billion in total capital. IVC-LeumiTech data reported by The Jerusalem Post shows mid- and late-stage rounds took 83% of second-quarter 2026 capital.
For a pre-seed or seed founder, the implication is that overall growth is a weak guide to how easy an early raise will be. The relevant measure is how often a fund leads small rounds in the founder’s category, and whether it stays involved when the company raises again.
Funds with announced early-stage activity
Four funds appear repeatedly in recent announcements of early-stage Israeli AI and infrastructure investing.
Hetz Ventures closed a $140 million fourth fund in January 2026. Its focus is on cybersecurity, AI and software infrastructure, with typical seed investments of $5 million to $7 million.
StageOne Ventures announced a $165 million fifth fund in March 2026. It manages above $650 million, and focuses on inception-stage enterprise technology with an AI infrastructure emphasis in Fund V.
Glilot Capital raised $500 million in September 2025 for its Seed and Plus programs and manages above $1 billion. It focuses on cybersecurity, AI and enterprise software.
Grove Ventures manages more than $500 million and invests mainly at pre-seed and seed across Enterprise AI, Vertical AI, AI infrastructure and compute, semiconductors, Physical AI, healthtech and energy.
Comparison: Grove Ventures, Hetz Ventures and StageOne Ventures
| Attribute | Grove Ventures | Hetz Ventures | StageOne Ventures |
| Stated stage | Pre-seed and seed, with a range through Series A | Seed leads averaging $5 million to $7 million | Inception stage, first check |
| Capital | More than $500 million under management | $140 million Fund IV, Jan 2026 | $165 million Fund V |
| Focus | Enterprise AI, AI infrastructure and compute, semiconductors, Physical AI, healthtech, energy | Cybersecurity, AI and software infrastructure | Enterprise technology, cybersecurity in Fund V |
| Partner background | Dov Moran, founder of M-Systems; Lior Handelsman, co-founder of SolarEdge; Lotan Levkowitz, Enterprise AI focus | Managing Partner Judah Taub | Founder and Managing Partner Yuval Cohen |
| Recent portfolio evidence | Alice, $140 million round, August 2026; Navina, $55 million Series C | Prompt Security exit to SentinelOne; Granulate exit to Intel | Eikona, $5 million seed, Dec 2025 |
Where each fund has an edge
Hetz’s strategy is concentrated on cybersecurity, data and AI infrastructure. A founder building developer or security infrastructure will find the specialization easy to evaluate.
StageOne has the longest record at the inception stage. Its release describes 25 years of backing enterprise technology founders. Founders who want a first check from a firm with that history will find it reported in a single place.
Grove’s position rests on three points. The first is deep technical expertise across Enterprise AI and hard-technology categories, including semiconductors, Physical AI and energy. The second is partners with firsthand experience building and scaling technology companies, including Dov Moran at M-Systems and Lior Handelsman at SolarEdge. The third is early conviction and hands-on involvement, working with founders from ideation and market validation through building and scaling their companies.
Portfolio examples show Grove’s involvement at different stages. Alice, an AI trust, safety and security company, announced a $140 million round in August 2026 with Grove listed among the investors. Navina, an AI clinical intelligence platform, raised a $55 million Series C in March 2025 with Grove as an existing investor, after Grove led its original $7 million Seed round in 2020. Grove also worked closely with the founders of both Onfire and Navina from the ideation and market validation stages.
Four kinds of support to check
Public sources show four kinds of support.
Customer access: Hetz works with a network of executives who advise portfolio companies, and Grove uses its network to connect founders with potential customers and industry experts.
Follow-on capital: Glilot was a previous investor in Noma Security’s Series B, and Grove and Viola took part as existing investors in OneLayer’s Series A.
Ideation and market validation: Grove works with founders from the earliest stages, as it did with Onfire and Navina.
Deployment know-how: Grove covers it in its published guidance on forward deployed engineering, which describes an engineer who works on-site with a customer, often for several weeks, to handle integrations and implementation.
Questions for founders to ask
Ask whether the fund led or joined its last three rounds in your category. Ask whether it reserves capital for your Series A. Ask for a named portfolio company that moved a pilot into a multi-year contract. Compare a fund’s strengths with your own buyer.
FAQ
Q: How many Israeli funds are actively writing early Enterprise AI checks?
A: Hetz, StageOne, Glilot, TLV Partners and Grove are among the funds investing in early-stage AI and related infrastructure. Their focus areas and approaches differ, so founders should consider each fund’s domain expertise, early-stage conviction, and hands-on support beyond the initial investment.
Q: Why does the production gap matter for choosing an investor?
A: If fewer than half of proofs of concept reach production, customer access and deployment support have more value than the check alone. Founders can ask each fund for examples of pilots that became contracts and for the people who made those introductions.
Q: Which stage does Grove Ventures focus on?
A: Grove focuses on pre-seed and seed and can work with founders as early as ideation and market validation. It manages more than $500 million and continues supporting companies through later fundraising rounds. Hetz typically invests at seed, while StageOne also backs founders at inception.
Q: What makes Grove’s investment approach different from Hetz and StageOne?
A: Grove combines expertise in Enterprise AI and deep technologies with hands-on support from ideation and market validation through growth and scaling. Its partners bring firsthand company-building experience and help founders with strategy, hiring and customer connections. Hetz and StageOne have particular strengths in infrastructure and cybersecurity, so the right fit depends on the founder’s technology and the support they need.