Hetz Ventures

# Hetz Ventures: Israel's Deep Tech Seed Accelerator

High-Level Overview

Hetz Ventures is a Tel Aviv-based venture capital firm that has established itself as a prominent early-stage investor in Israeli deep technology startups[1][2]. Founded in 2018, the firm manages approximately $300 million in assets under management and operates with a clear mission: to identify and scale highly talented Israeli founders operating at the cutting edge of deep technology sectors[1][2].

The firm's investment philosophy centers on a hands-on, tech-driven partnership model that extends far beyond capital deployment[1][3]. Rather than taking a passive investor stance, Hetz positions itself as an active operational partner from due diligence through follow-on financing rounds. The firm specializes in seed and pre-seed stage investments across AI, cybersecurity, fintech, enterprise software, data infrastructure, and developer tools[1][2]. This focused vertical approach reflects a deliberate strategy to build deep expertise and network effects within high-growth technology sectors.

Hetz's impact on the Israeli startup ecosystem has been substantial. The firm leads 85% of the seed rounds it participates in, demonstrating both founder confidence and market influence[1][2][4]. With a portfolio of 45+ companies, Hetz has already produced notable exits, including Granulate's $650 million acquisition by Intel and Seekret's acquisition by Datadog[2]. These outcomes validate the firm's thesis around deep technology and its ability to identify and nurture category-defining companies.

Origin Story

Hetz Ventures launched in January 2018 with Fund I, raising $55 million to begin its mission of investing in Israeli deep tech startups[4]. The firm was deliberately built by founders and operators with deep technical backgrounds—the entire investment team consists of ex-engineers with infrastructure expertise[3]. This technical founding DNA shaped the firm's identity from inception.

The leadership team reflects this engineering-first mentality. Judah Taub serves as Managing Partner, while Pavel Livshiz holds the General Partner role, and Anat Eitan functions as CFO & Partner[1][2]. This combination of technical depth and business acumen has enabled the firm to speak the language of founders while maintaining rigorous investment discipline.

The firm's evolution demonstrates strategic capital raising and fund expansion. Following Fund I's $55 million close, Hetz raised Fund II ($77 million) in April 2020, then announced Fund III ($123 million) in April 2022[4]. Additionally, the firm closed a dedicated Opportunity Fund of $27 million in March 2022[4]. This capital trajectory reflects both strong performance and increasing institutional confidence in the firm's model. The firm also expanded geographically, opening its Sarona office in Tel Aviv in July 2021[4], positioning itself at the heart of Israel's tech ecosystem.

Core Differentiators

Rapid Decision-Making and Founder-Centric Process

Hetz has engineered its investment process for speed without sacrificing rigor. The firm averages just 20 days from first meeting to term sheet signing[1][4], a remarkable velocity that reflects both operational efficiency and founder respect. The due diligence process is deliberately structured as a two-way street—founders are invited to contact existing portfolio companies and validate the firm's value proposition before committing[3]. This transparency builds trust and allows founders to make informed decisions about partnership.

The Hetz Executive Network

One of the firm's most distinctive assets is the Hetz Executive Network, launched in December 2022[4]. This specialized network connects portfolio founders with experienced advisors from global corporations and larger technology companies[1][3]. The network serves a critical function: the vast majority of Hetz portfolio companies have been introduced to their first paying customer through this business development infrastructure[3]. This is not theoretical value-add—it directly translates to revenue acceleration and customer validation.

Hands-On Technical Partnership

Unlike many venture firms that maintain distance from portfolio operations, Hetz embeds itself in the success of its companies[1][3]. The team provides support across go-to-market strategy, product-market fit development, and follow-on capital raising. The firm's technical background enables meaningful product and architecture discussions, positioning partners as credible operational advisors rather than financial intermediaries.

Focused Vertical Expertise

Hetz deliberately concentrates its portfolio across specific verticals—AI, cybersecurity, fintech, enterprise software, data infrastructure, and developer tools[1][2]. This focus creates network effects, allows the firm to develop deep sector expertise, and enables meaningful cross-portfolio collaboration and customer introductions.

Check Size and Capital Efficiency

The firm's historical average check size is $3.2 million, with a maximum check of $40 million[2]. This range positions Hetz as a meaningful capital provider at seed and early growth stages, capable of leading rounds while maintaining the agility to move quickly.

Role in the Broader Tech Landscape

Hetz Ventures sits at the intersection of several powerful macro trends reshaping the technology industry. The firm is riding the wave of AI and deep technology infrastructure investment, a sector that has attracted unprecedented capital and talent globally. Israeli founders have demonstrated particular strength in infrastructure, security, and data systems—precisely the domains where Hetz concentrates[1][2].

The timing is particularly favorable for Hetz's model. As AI adoption accelerates, enterprises face mounting cybersecurity challenges, data governance complexity, and infrastructure modernization demands. Israeli startups have historically punched above their weight in these domains, and Hetz's global network positions portfolio companies to capture international market opportunities that extend far beyond Israel's domestic market.

Hetz also influences the broader Israeli venture ecosystem by demonstrating that seed-stage venture can be both capital-efficient and founder-friendly. The firm's rapid decision-making and operational support model has become a template that other Israeli VCs increasingly emulate. By leading 85% of seed rounds and maintaining a strong follow-on investment rate, Hetz shapes capital allocation patterns and signals market confidence in Israeli deep tech founders.

The firm's strategic initiatives—particularly the Hetz Data Program (launched July 2023) and the Executive Network—represent a broader shift in venture capital toward active value creation beyond capital provision. In an era where capital is abundant but quality operational support remains scarce, Hetz's model addresses a genuine market need.

Quick Take & Future Outlook

Hetz Ventures has successfully positioned itself as the premier seed-stage investor for Israeli deep technology founders with global ambitions. The firm's combination of technical expertise, rapid decision-making, and operational infrastructure creates a compelling value proposition that extends beyond capital.

Looking forward, several dynamics will shape Hetz's trajectory. First, the firm's ability to generate outsized returns will depend on whether its portfolio companies can scale beyond the Israeli market and achieve meaningful international traction. The Hetz Executive Network and global investor connections position the firm well for this, but execution remains paramount.

Second, as AI infrastructure and cybersecurity continue to consolidate around a smaller number of category leaders, Hetz's portfolio concentration in these verticals could produce exceptional returns—or face headwinds if market dynamics shift. The firm's technical expertise should enable it to navigate these transitions effectively.

Third, the venture capital market's evolution toward more founder-friendly, operationally engaged models suggests that Hetz's approach will become increasingly competitive. The firm's early adoption of this model and its track record provide durable advantages, but maintaining differentiation will require continuous innovation in how it supports founders.

Ultimately, Hetz Ventures represents a new generation of venture capital—one that recognizes that in deep technology, the best returns flow to investors who can genuinely partner with founders on technical and operational challenges, not merely provide capital. As Israeli deep tech continues to mature and scale globally, Hetz is well-positioned to capture significant value from this secular trend.