Key1 Capital

Last week, we hosted our second roundtable event for CFOs from our ecosystem. The evening was a perfect blend of food, drink, and invaluable insights from our guests regarding the importance of M&A as an inorganic growth engine. A special thanks to Assaf Ben Ami, Co-Founder and CFO of ironSource, and Ofer Koren, CFO of Global-e, for sharing their extensive M&A experiences and lessons learned.  Some of our favorite takeaways include: 👉 When looking to make an acquisition, strategic rationale needs to be sound - it can complement your product offering, supercharge your company’s growth, or mitigate technology gaps while ensuring you have the right partners.   👉 The cultural fit between organizations is critical, so invest time in creating the right stricture pre-transaction to integrate the two organizations later on. 👉 Carefully evaluate whether the timing is right, as M&As demand substantial resources and will inevitably divert attention from other company priorities.   👉 While being cognizant of the potential synergistic value the two companies bring to the table, be disciplined about valuation and the overall economic rationale for the deal. 👉 Be open to various forms of strategic cooperation that are short of a full acquisition, but could yield significant value nonetheless and ultimately lead to a combination of the two companies.   Thank you to all who joined us, especially Assaf and Ofer who reminded us once again that building a large company requires vision, tremendously diligent work, and crystal clear goals.

We're thrilled to welcome Jacob Frankfort and Aidan Bar-Cohen to Key1 as our new interns! Over the coming months, Jacob and Aidan will immerse themselves in the world of growth investing, contributing their fresh perspectives and supporting our team's initiatives. Their trip to Israel, facilitated through TAMID Group and Birthright Israel Excel, exemplifies the continued commitment of these programs to Israel's startup ecosystem and the recognition that our innovative community has so much to offer, even in the face of current challenges. We're excited to have these two talented, intellectually curious, and driven young professionals on board. Slide on to learn more about them →

Historically, defense tech and venture dollars have not been a harmonious mix. But the tide is turning fast, especially in Israel, where technology and national security have been bound together since its establishment. In his piece for CTech by Calcalist, Amit Pilowsky explores: 👉 Why defense tech and venture capital have historically clashed 👉 How mega-trends are reshaping the sector, empowering entrepreneurs to drive military innovation 👉 What makes Israel's ecosystem unique and the vast untapped potential in defense tech innovation Israeli founders: Your expertise are crucial in shaping the future of this critical industry, and we are excited and energized about what lies ahead. Give it a read and we would love to hear your thoughts ⬇️ https://lnkd.in/dAfFFxUH

We could not be more proud of SuperPlay who are using their tech talent and resources to actively aid in the path to resilience and recovery of our nation. Since October 7th, there has been an overwhelming need for trauma treatment for the many Israeli citizens suffering from PTSD. In light of this, Ichilov has launched a hackathon that brings together medical staff from the hospital with programmers, designers, and app builders from gaming companies to create digital solutions. SuperPlay’s app, “Journey,” aims to empower those suffering from PTSD to engage and process their trauma, an incredibly important mission in this difficult time. Read more ➡️ https://lnkd.in/eS-HX-hc

Our Founding Partners, Danny Akerman, Sarel E., and Amit Pilowsky open up to TheMarker on the *why* and *how* behind their venture into growth investing in their very first interview. ➡️ Amit delves into Israel’s evolution from a ‘start-up nation’ to a ‘scale-up nation,’ emphasizing the critical need for local growth funds to collaborate with seasoned entrepreneurs. ➡️ Sarel highlights Key1’s investment strategy, leveraging over two decades of experience at Goldman Sachs and rooted in intentionality and patience. ➡️ Danny comments on the market’s impact on IPOs and raises thought-provoking questions about the future of the AI sector and its potential to meet current valuations. As Ofir Dor notes, in the face of Israel's challenging geopolitical climate where entrepreneurs fear the flight of foreign investors, the presence of robust local funds with significant capital reserves is an asset to our country. A Hebrew read, and well worth it 👇 https://lnkd.in/dtSG3iyq

On Sunday night we hosted our CEOs for a memorable evening of food, thought, and “food for thought.” We had the privilege to hear from two guest speakers, Tomer Bar-Zeev, co-founder and CEO of ironSource, and eran liron, NICE's former Head of Strategy and Business Development, current Chief Strategy Officer of Next Insurance, and a Venture Partner to us at Key1. They shared their extensive M&A experiences with us and explored how to apply these lessons to the broader start-up ecosystem. Some valuable core principles shared included:   1️⃣ Team and cultural fit come first 2️⃣ If you find the right company to acquire, don’t over-optimize the valuation 3️⃣ Forming relationships early on with target companies is essential 4️⃣ Put in effort to make “newcomers” part of your company’s cultural fabric  5️⃣ Develop your internal Business Development function at the outset to optimize inorganic growth 6️⃣ How to strategically think about both the M&A and IPO options We left the evening energized by the incredible insights, and the quality company of our CEO community. Thank you to all who joined!

The age of AI has brought an explosion of data demand. But it has also brought forth the challenge of finding management and storage solutions capable of efficiently handling the needs of large-scale AI and multi-cloud environments.   In our latest piece, Danny Akerman and Aner Levkovich dig deeper into the necessity for next-generation management and storage solutions, and why WEKA, an early innovator armed with unparalleled technology, stands out. Purpose-built from the ground up to address the dynamic demands of modern computing landscapes, WEKA cuts through the data storage bottleneck, fostering continued innovation. With WEKA's recent announcement of a $140 million funding round, we're honored to be partners on their journey and support a company that is revolutionizing data infrastructure for the AI era. Give it a read  ⬇️

WEKA– propelling growth with their latest $140 million raise!    Demand for data storage is continuing to soar, driven by exponential growth in high-performance computing applications, most prominently generative AI and ML. With their cutting-edge technology, WEKA’s data platform caters to this explosive demand head-on.     We are proud and privileged to continue partnering with Liran Zvibel, Maor Ben Dayan, Omri Palmon, Amit Pandey, Jonathan Martin, Intekhab Nazeer, and the entire WEKA team as they enter this next phase.     Read more ➡️ https://lnkd.in/dfuRZrS4 

Debt can play a pivotal role in the growth trajectory of tech businesses, and entrepreneurs should understand the ins and outs of this financing mechanism as early on in their journey as possible. Our Managing Partner, Sarel E., knows a thing or two about debt financing, having led the GM financing business in EMEA and innovative financing transactions for two decades at Goldman Sachs. In this piece, he explores it all: ➡️ The evolution of debt instruments in the VC ecosystem. ➡️ How debt can be strategically utilized to propel tech company growth. ➡️ The potential benefits and drawbacks of debt for growth companies. ➡️ The questions every entrepreneur should ask themselves before deciding on taking debt. Give it a read 👇

We recently took part in CTech by Calcalist’s 2024 VC Survey where we shared our thoughts on the current status of Israel’s high-tech sector. In it, we give our thoughts on how the Startup Nation has been affected by the events of the last year, offer practical tips for founders looking to raise, and share why despite the challenges we are more confident than ever to partner with the new wave of high-potential growth companies.💪 Bottom line: We have absolute faith in the resilience of Israeli entrepreneurs, a trait that has defined our nation in the face of challenges for decades. A peaceful Passover to all of our Jewish founders, friends, and family! ➡️ https://lnkd.in/dDhgH74m