Israel’s tech ecosystem is home to countless ambitious startups, many of which set their sights on the U.S. market as a key to scaling their success. But the leap from Israel to the United States is no small feat. That’s where UpWest comes in.
In a recent conversation by Yoel Israel on IsraelTech, Lia Cromwell, Partner at UpWest, shared how her firm takes a unique approach to investing in Israeli founders and helping them establish a strong foothold in the United States.
The UpWest Difference: 100% Focus on Israeli Founders in the U.S.
Unlike many venture capital (VC) firms that either invest broadly in Israeli startups or in the U.S. with some allocation to Israeli founders, UpWest operates with a distinct model. Since its inception in 2012, it has remained the only U.S.-based VC fund dedicated entirely to Israeli founders relocating to America.
“We actually have the largest portfolio of Israeli startups that are headquartered in the U.S.,” Cromwell shared. “We recently made our 100th investment in an Israeli team.”
With most of its team based in Palo Alto, UpWest is uniquely positioned to provide hands-on support for Israeli entrepreneurs making the transition to the U.S. The firm acts as an early-stage investor, typically writing pre-seed and seed-stage checks, and actively guiding founders through company formation, market penetration, and scaling in the U.S.
The Relocation Mandate: Why UpWest Requires Founders to Move
UpWest’s investment strategy isn’t just about funding – it’s about physical presence. The firm invests in startups only if their CEO is committed to relocating to the U.S.
“One of the best things a team can do to increase their likelihood of success is to have the CEO physically in their target market,” Cromwell explained. “Being near customers, investors, and top talent makes a significant difference.”
While about a third of the companies UpWest invests in already have Israeli founders based in the U.S., the other two-thirds are startups that originate in Israel. For these companies, UpWest’s backing comes with the expectation that they will establish a direct presence in America.
Why Being in the U.S. Matters
When COVID-19 forced remote work and virtual business expansion, many questioned whether physical relocation was still necessary. Cromwell, however, believes that being in the market remains essential.
“If anything, Zoom works too well,” she said. “It gets your foot in the door, but it doesn’t help you differentiate yourself. Americans feel more comfortable on Zoom with someone who is also American. The second a founder can say, ‘I’m calling you from New York or Silicon Valley,’ it builds trust much faster.”
This geographic proximity has a massive impact on business development, hiring, and fundraising. UpWest has helped companies like SentinelOne, one of its earliest investments, land major U.S. customers like Netflix, Yahoo, and Vox. Having high-profile American logos on a startup’s website makes a huge difference in credibility and market traction.
Cultural Adaptation: Preparing Israeli Founders for the U.S. Market
Moving to the U.S. isn’t just about logistics – it requires cultural adaptation. American business norms differ significantly from Israeli ones, and UpWest plays a critical role in preparing founders for these differences.
“We don’t infantilize founders, but we do help them prepare,” Cromwell said. “They need to be five times more prepared for meetings than they would be in Israel.”
Some of this preparation includes practical adjustments, such as understanding American business attire and etiquette, but more importantly, it involves refining communication and networking skills.
“Americans love to talk about sports and the weather,” Cromwell joked. “Israeli founders who learn to make small talk and build rapport quickly will have a much easier time connecting with potential customers and investors.”
The Two Paths to Startup Success
UpWest looks for two key types of founders:
- Industry Experts: Those with deep knowledge of the sector they’re disrupting.
- Outsiders with a Fresh Perspective: Those who bring innovative solutions to an industry precisely because they aren’t weighed down by traditional assumptions.
“Only about 50% of successful VC-backed founders come from the industry they’re disrupting,” Cromwell noted. “The other half are outsiders who bring fresh thinking. We look for founders who bring a unique advantage, whether that’s expertise or an entirely new way of solving a problem.”
The Hardest Part of Venture Capital
Despite the excitement of investing in groundbreaking startups, Cromwell admits that the toughest part of her job is saying no.
“Venture capital is the business of saying no,” she said. “We meet hundreds – sometimes thousands – of companies a year, but we only invest in four to eight annually.”
What sets UpWest apart, however, is its commitment to providing constructive feedback. Even when UpWest passes on an investment, Cromwell ensures founders walk away with valuable insights.
The Future of UpWest
Recently promoted to Partner, Cromwell’s role at UpWest continues to evolve. She spends her time sourcing deals, guiding founders, and working closely with portfolio companies, whether they’re still in stealth mode or actively scaling in the U.S.
UpWest remains steadfast in its mission: to help Israeli startups successfully navigate their expansion to America. With over a decade of experience and 100 investments under its belt, the firm continues to bridge the gap between Israel’s unparalleled innovation and the vast opportunities of the U.S. market.
For Israeli founders looking to break into the U.S., UpWest isn’t just an investor, it’s a partner in their journey to success.
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