Greenfield Partners closes $350m in investment funds

Greenfield Partners Credit: Katya Savina
Greenfield Partners Credit: Katya Savina

The new Israeli funds will invest in early stage growth startups and support portfolio companies at later stages.

Israeli tech company investment fund Greenfield Partners has announced the final closing of new funds totaling $350 million. The new funds include Greenfield Partners Fund II, for investment in 15 early growth startups (rounds B and C), and several additional investment vehicles that will jointly enable investments of larger amounts and support Greenfield’s existing portfolio companies at later stages and for the long term. The new funds raised bring the total assets under management by Greenfield Partners to over $500 million.

Greenfield Partners was founded in 2016 by TPG Growth. In 2020, the fund’s partners set up an independent fund, backed by new investors including institutional investors, entrepreneurs, and investors from Israel and abroad. Avery Schwartz, a veteran investment banker at Goldman Sachs, and Raz Mangel, previously with Barclays, joined Greenfield as partner and principal, respectively. Greenfield currently has a team of seven investment professionals in New York and Israel.

Previous Greenfield Partners investments include Guardicore, which was sold to Akamai last year; Avanan, which was sold to Check Point last year; and unicorns VAST Data, recently valued at $3.7 billion, and BigPanda, recently valued at $1.2 billion. Greenfield Partners Fund II has already invested in Capitolis, Coralogix, Cynet, Silverfort, Panorays, EquityBee, Mixtiles, DustPhotonics, Planck, and Quali.

The fund stresses enterprise software and also invests in fintech and consumer/internet, while focusing on early stage growth companies. Greenfield’s value comes from supporting founders and their companies in their transition from being primarily R&D focused, to international expansion and building worldwide marketing and sales operations. Greenfield’s team, and its global network of advisors, is comprised of a diverse set of former founders, senior management in leading technology companies, and financial experts with experience in banking and investments.

Greenfield managing partner Shay Grinfeld said, "We are at a period when the market is placing greater emphasis on healthy unit economics, which is where our expertise lies, after several years where we saw investors rewarding growth at all costs. We invest in companies after years in which the companies’ management was focused on R&D, product-market-fit, and initial build-out of its sales function. At the early-growth stages where we enter, new challenges emerge and we have the expertise and the tools to work with founders to ensure they manage them in the optimal way."

Greenfield managing partner Yuda Doron said, "In this period of market volatility, we are grateful for our ability to continue to support Israeli entrepreneurs and promote innovation through our new funds. We see where the company needs to be a few years down the road and work closely with them on building their sales organizations, recruiting executives, opening international offices, improving KPIs, and developing scalable internal processes, which together set up our portfolio companies up for long-term success. We have been active in the Israeli technology ecosystem for many years and thank some of the world’s leading investment managers who have chosen to partner with us and believe in the Israeli technology market."

Published by Globes, Israel business news - en.globes.co.il - on June 16, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Greenfield Partners Credit: Katya Savina
Greenfield Partners Credit: Katya Savina
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