Hetz Ventures closes on $77m for oversubscribed second fund to invest in B2B enterprise tech

Hetz Ventures closes on $77m for oversubscribed second fund to invest in B2B enterprise tech

Published: 16-09-2020 14:58:00 | By: Pie Kamau | hits: 839 | Tags:

Hetz Ventures, a leading venture capital fund for early-stage investments, announced the close of its second flagship fund, oversubscribed at $77 million. Fully raised during the COVID-19 crisis, the fund had its first close in April and final close in July. With Fund II, Hetz will manage over $130M total. The firm closed Fund I of $55 million in February 2018 and, leveraging its deep network of Israeli entrepreneurs and international enterprises, has since invested in 10 companies in various enterprise software verticals.

Founded in 2018, Hetz Ventures has quickly established itself as Israel's go-to venture for Israeli entrepreneurs with seed-stage deep-tech startups in B2B enterprise software, DevOps, cybersecurity, cloud computing, and fintech. While over 90% of Fund II contributors are experienced international investors, it has also attracted investment from founders of its portfolio companies who have invested back into Hetz, along with distinguished local entrepreneurs, powering a continuous cycle of Israeli innovation.

Judah Taub, Managing Partner, Hetz Ventures: "We founded Hetz just under three years ago with the goal of investing in companies that are building deep, defensible technologies and have disruptive business models. In the COVID-19-impacted business world, such technologies have become paramount. We partner with companies that fill real gaps in the market. Our extensive international network exponentially accelerates our portfolio companies' success abroad. To date, all our companies have greatly leveraged this growing network in different ways, primarily in finding international design partners and first customers. We're excited about the opportunities this new fund will allow us to invest in. Additionally, it is an indication of confidence in our approach that so many of investors from Fund I have invested once again in Fund II, and that many of the founders we have backed previously now wanted to become investors in Fund II."

Hetz Ventures relies on thesis-driven investment and employs a proactive top-down approach. Partnering with companies from a very early stage, Hetz is typically the first money invested. From first meeting with a founder to investing in their company, it typically takes the firm four weeks or less, beginning with the problem and the market opportunity, analyzing the solution, the competition, and potential customers through a thorough and transparent process.

Hetz Ventures' has already invested in two companies through Fund II. With Fund I, Hetz invested in a total of 10 companies including Trigo, an AI and computer vision-powered provider of frictionless shopping experience; Granulate, an Israel-based company that optimizes infrastructure and workload performance in real-time; Codota, a startup developing a platform that suggests and autocompletes Python, C, HTML, Java, Scala, Kotlin, and JavaScript code; and Anima which creates high-fidelity prototypes in Sketch, XD or Figma and export HTML. Hetz Ventures' portfolio also includes companies such as JonesMarketBeyondDeepChecksInfinipoint and Acumen.