Israeli deep-tech venture capital fund Deep33, which was foundat the start of 2026 by venture capital investor Lior Prosor and US entrepreneur Michael Broukhim, has closed a $200 million first fund - well above the target of $150 million. More than half of the fund's investors are from overseas, most of them from the US and some from the UK.
The fund has also managed to mobilize Israeli institutional investors. This is a particularly interesting development, since, according to the fund's managers, only six months ago, many institutional investors in Israel viewed deep-tech and hardware as relatively complex and risky areas for investment. Now, they say, there has been a change in sentiment, and Israeli investors increasingly understand the potential inherent in the field.
The fund operates from the US, and focuses on companies in the fields of AI, infrastructure, energy, quantum computing, communication components and advanced physical technologies. According to its managers, about 70% of the investments will be in companies founded by Israeli entrepreneurs and about 30% in US companies. So far, the fund has invested in companies including Particle, QuamCore, Seabridge and OHR, along with several other companies yet to be named.
According to Broukhim, the rationale behind the fund stems from the understanding that the next wave of technological innovation won’t just be about software. "Many of the most important companies of the next decade will be building the physical world of AI," he said. "The world will need a lot more energy, a lot more computing, and a lot more infrastructure. There are bottlenecks in the physical world, and we are looking for the companies that will solve them."
"Israel can lead"
One of the fund's main beliefs is that Israel can become a strategic player in the field of deep-tech, similar to Taiwan's position in the field of chips. "We believe that Israel can be a supplier of critical technologies to the world," said Prosor. "Whether it is in AI infrastructure, quantum computing or advanced industrial technologies. Israel has already proven that it is a leader in human capital, and we believe that it can also be a leader in the physical infrastructure on which the next generation of technology will rely."
Beyond the investments themselves, Deep33 is trying to build a network around its companies that will help them reach markets and customers. To this end, the fund has established a network called Deep to Market, which aims to connect entrepreneurs with leading technology companies, potential customers and US government officials. "The idea is to give entrepreneurs access that is not usually available at the beginning," said Prosor. "Whether it is key people in leading AI companies, in professional communities in the quantum field or in US government officials."
Deep33 believes that if Israel knows how to exploit its technological and human advantages, it can become a central player in the supply chains of the AI era. According to Broukhim, "If in the past Israel was associated with software and cybersecurity, we believe that the next decade it could be the same for Israeli deep tech.
Published by Globes, Israel business news - en.globes.co.il - on June 24, 2026.
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