Israel’s tech ecosystem has long been a global powerhouse, consistently producing groundbreaking startups and attracting international investment. To gain deeper insight into the world of venture capital (VC) and its role in this thriving landscape, Yoel Israel from IsraelTech sat down with Asaf Horesh, Managing Partner at Vintage Investment Partners. From his journey in the Israeli Air Force to his time at Wharton and his experiences in VC, Asaf provides a unique perspective on the evolution of tech investing and Israel’s role in the global market.
From the Cockpit to the Boardroom
Asaf’s path to venture capital was anything but conventional. After serving as a pilot in the Israeli Air Force, he pursued a degree in computer science and business at Tel Aviv University. It was during this time that he began to explore opportunities beyond Israel, leading him to pursue an MBA at Wharton.
“When I finished my Air Force service, I was 26 or 27 and didn’t even know there was a world beyond the typical Israeli ecosystem,” Asaf reflects. “During my studies, I realized I wanted to do something global. That led me to an MBA and eventually to the venture world.”
Following Wharton, Asaf worked at the Boston Consulting Group (BCG), where he traveled extensively across the U.S., gaining exposure to different industries. His eventual return to Israel was prompted by both professional ambitions as well as by a promise to his wife.
“Life in the U.S. is easier – education for kids is better, business prospects are strong. But Israel is home. It’s fun, it’s family,” he says. “That was the real reason for coming back.”
Breaking Into the VC World
Upon returning to Israel, Asaf joined Greylock, an early-stage venture fund focused on Israeli and European startups. This experience provided him with invaluable insight into the intricacies of investing.
“One of the hardest things in venture is knowing what good looks like,” Asaf explains. “It’s about setting the bar high enough to recognize a quality company or deal.”
Today, at Vintage Investment Partners, Asaf and his team take a broader approach to investing, covering the entire venture value chain from early-stage startups to late-stage growth companies.
“We think of Vintage as a venture platform rather than a fund,” he says. “We invest in the best fund managers across Israel, Europe, and the U.S., leveraging those relationships and data to make informed investment decisions.”
The Evolution of Israel’s Tech Landscape
Israel’s tech industry has undergone a dramatic transformation over the past decade. Traditionally known as the “Startup Nation,” Israel has become increasingly focused on scaling companies rather than selling them early.
“We used to see exits in the hundreds of millions,” Asaf notes. “Now, more Israeli companies are generating hundreds of millions in revenue and scaling globally.”
This evolution is evident in the recent wave of high-profile exits. Despite geopolitical challenges, the Israeli tech sector remains resilient, with many international corporations continuing to invest in and acquire Israeli startups.
“The past year has been a strong one for exits in Israel,” Asaf says. “It’s a testament to the confidence that global companies have in the ecosystem.”
The Resilience of Israeli Tech Post-October 7th
The events of October 7th shook Israel to its core, yet the country’s tech ecosystem has shown remarkable resilience. Asaf notes that despite disruptions, the industry has continued to operate at full capacity.
“At Vintage, at one point, a third of our workforce was in reserves,” he recalls. “Yet, from the outside, you wouldn’t have noticed any disruption. We didn’t miss an investment opportunity, due diligence process, or a report. The work continued.”
This level of resilience extends beyond Vintage and is a defining characteristic of Israeli tech as a whole.
“Our investors abroad recognize this,” Asaf says. “They see the adaptability and perseverance of Israeli companies, and it strengthens their confidence in the ecosystem.”
What’s Next for Israeli Tech?
Looking ahead, Asaf believes Israel’s tech sector will continue to evolve, with key areas of growth including artificial intelligence (AI), climate tech, and healthcare. While there has been significant interest in defense tech, particularly in the wake of geopolitical developments, he sees broader trends shaping the industry’s future.
“There are strong tailwinds in climate, healthcare, education, and AI,” he says. “These are areas where technology can solve some of the biggest challenges facing humanity.”
The Vintage Approach to Venture Capital
Unlike many VC firms that specialize in early- or late-stage investments, Vintage takes a comprehensive approach.
“We invest in the best early-stage funds, which gives us exposure to promising startups,” Asaf explains. “Then, as these companies mature, we have the opportunity to invest in secondary deals or growth-stage rounds.”
This strategy allows Vintage to build deep relationships across the ecosystem and identify high-potential companies before they become widely recognized.
Advice for Founders and Investors
For aspiring entrepreneurs, Asaf emphasizes the importance of resilience and strategic networking.
“When I was looking for jobs in VC, I got dozens of ‘no’s,” he admits. “You have to be persistent, meet the right people, and put yourself in the best position to succeed.”
For investors, he highlights the value of understanding both macroeconomic trends and the nuances of individual startups.
“The key is recognizing patterns,” he says. “Great investors develop an intuition for what good looks like, but it’s not just about gut feeling- it’s about experience, learning from mistakes, and constantly refining your approach.”
Conclusion
As Israel’s tech ecosystem continues to mature, the role of investors like Vintage Investment Partners becomes increasingly critical. By supporting startups at every stage of growth and fostering a culture of innovation, the Israeli VC community is ensuring that the country remains a global leader in technology.
With professionals like Asaf Horesh at the helm, the future of Israeli tech looks brighter than ever.
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