JAL Ventures closes $105m second Israel VC fund

JAL Ventures has announced the closing of JAL II, a $105 million second fund. JAL focuses on investment in post-seed and Series A rounds in early revenue stage Israeli technology companies.

JAL invests in B2B companies across a range of sectors, including cybersecurity, enterprise software, AI and fintech. The team aims to deploy the second fund across 10 startups, which will allow JAL to devote the necessary attention and resources to each startup and help them become leaders in their field.

Limited Partners in JAL II include Israeli institutional investors, international financial institutions and family offices.

JAL II has already made five investments in B2B startups, some of which have raised follow-up rounds at significantly higher valuations. The second fund includes insurtech companies Novidea and VOOM; e-mobility company IRP, which provides solutions to enhance electric vehicle performance; and cybersecurity company Infinipoint, founded by former Palo Alto Networks executives. The fund’s fifth investment will be announced in the near future.

JAL’s first fund of $60 million was launched in 2017.To date, JAL has invested in 20 companies, six of which have already been acquired, and the rest have carried out significant late-stage investment rounds.

JAL’s portfolio includes cybersecurity company Dome9, which was acquired by Check Point, as well as Perimeter 81, a leader in zero-trust network access that raised funds from leading international investors. The portfolio also includes online commerce AI company Feedvisor; digital printing company Velox; travel technology company Fornova; camouflage technology company Ametrine; and cleantech company Solutum, which develops biodegradable alternatives to plastic.

JAL partner Tal Shaked said, "Venture capital funds tend to invest in a large number of companies, with the understanding that many will end up failing, to be compensated for with a limited number of successes. We do not adhere to this model, and one might say that we are risk-averse in this high-risk asset class. We prefer to carry out a relatively small number of quality investments every year, and to provide close on-hand support to each of them, which increases their chances of success. This is reflected in our high hit ratio over the years."

Partner Joshua Levinberg added, "The greatest challenge startups face today is recruiting talent for key positions. This is the area where entrepreneurs need the most help in. We believe that a company’s success does not only depend on their technology, products and market, but on their having a strong managerial backbone that can serve as a foundation for growth down the road. The extensive operational experience we’ve accumulated as founders and senior managers who have built up global companies, enables us, as investors, to offer significant assistance to our portfolio companies at every stage of growth."

Published by Globes, Israel business news - en.globes.co.il - on November 15, 2021.