TBD VC unveils $35M enterprise fund to again Israeli deep tech startups

TBD VC, a brand new early-stage enterprise capital agency, has introduced a $35 million fund to again deep tech Israeli founders on the pre-seed and seed levels, each in Israel and across the globe.

The fund launch comes amid a brand new wave of breakout Israeli tech tales, together with Wiz’s current $32 billion acquisition by Google and Subsequent Insurance coverage’s $2.6 billion exit — reinforcing the nation’s power in constructing profitable tech firms.

But, based on TBD founders David Citron and Alan Buch, the earliest levels of firm formation stay underserved.

TBD is actively investing and expects to again about 20 firms from this fund with a sector agnostic focus, nevertheless double-clicking in enterprise AI, cloud infrastructure, cybersecurity, and software program enabled defense-tech.

TBD will lead pre-seed rounds with roughly $1 million checks and infrequently take part in seed rounds alongside different buyers. The fund’s LP base consists of institutional buyers, household places of work, and profitable know-how entrepreneurs, and the agency is already actively deploying capital.

“We’re not searching for momentum rounds or hype cycles — we’re right here for the deeply technical founders constructing actual firms from day one,” mentioned Citron, who is predicated in Tel Aviv. “That’s the place worth is created, and conviction issues most.”

Citron brings over a decade of VC expertise with worldwide VCs, most notably with Rocket Web, the place he targeted on pre-seed investing in Israeli startups for the German large. Over his profession, Citron invested in dozens of Israeli startups throughout cybersecurity, infrastructure, enterprise software program and shopper apps.

His investments included CyberX (acquired by Microsoft), WalkMe, Voca.ai (acquired by Snap), Circulation Safety (acquired by Crowdstrike), Frontegg, Faye, Boards.com, Eon.io (dubbed as Israel’s “subsequent Wiz”), Upwind, and PointFive.

“We’re not making an attempt to be the whole lot to everybody,” Citron added. “We’re pre-seed specialists, first time founder-first, and relentlessly execution pushed.”

In an interview with GamesBeat, Citron mentioned that TBD VC will give attention to investing in enterprise software program, cybersecurity and deep tech. He is considering the way to use applied sciences like sport engines to construct the framework for digital twins within the enterprise, and that prospect could possibly be fascinating. However Citron mentioned his agency shouldn’t be going to give attention to sport investments.

“There’s clearly a number of enterprise in Israel within the gaming realm, however I’m principally an infrastructure investor and we’re making an attempt to stay to what we all know,” he mentioned.

Citron was born and raised in Israel, and he served within the army within the Particular Forces as a fight medic. He joined the enterprise capital trade upon being discharged, and he has been a VC for the previous 13 years.

“Enterprise and cybersecurity is a big chunk of the deal circulate in Israel,” he mentioned. “I’ve been an early stage investor, however I actually turned enthusiastic about pre-seed once I was working with Rocket Web, which assigned me to do pre-seed within the Israeli ecosystem. That was superb. Earlier than that, there have been no pre-seed buyers in Israel.”

Citron’s cofounder, Alan Buch, leads from New York and brings a worldwide wealth and various funding administration perspective.

With greater than 15 years of expertise— lately managing investments at a $4 billion multi-family workplace with investments in tech firms resembling Spotify, SpaceX, and Hive AI at their earlier levels—and a previous life as knowledgeable race automotive driver, Buch sees early-stage investing via a singular lens. He used to compete as a racecar driver throughout Europe, and he’s additionally an avid tennis participant.

“Startups and racing have extra in widespread than you’d count on,” mentioned Buch, in a press release. “It’s all about technique, timing, intuition—and figuring out precisely when to push.”

Along with normal companions on either side of the Atlantic with deep early-stage experience, TBD’s portfolio firms additionally profit from a worldwide community of 45+ enterprise companions, together with senior operators from Github, American Categorical, Epic Video games, and Netflix, who assist founders with product and go-to-market technique, with the clear purpose of reaching commercialization as quickly as doable.

“Israel continues to be the very best place to seek out technical founders,” mentioned Citron. “However the subsequent technology is world — and we’re constructing a agency that meets them the place they’re.”

“Early-stage Israeli founders don’t want vacationers — they want operators who transfer quick, construct belief, and unlock alternative,” Buch added. “TBD is constructed for that.”

That is Citron’s second fund, as the primary one was additionally a $35 million fund and it was a prime performer, with two-times return to date thus far. Prior investments from the sooner fund included Upwind.io, Pointfive.co and Eon.io. However no investments from the second fund are public but, Citron mentioned.

“With the newest acquisitions, everyone’s speaking about how Israel is larger and higher than ever. On the pre-seed degree, being the primary verify right into a startup is tremendous thrilling,” Citron mentioned. “We hope this might be an enormous second for Israeli enterprise startups.”

Citron acknowledged it’s been troublesome with the struggle in Gaza, however he famous that he’s optimistic about his give attention to the tech sector.