UpWest Raises $70M for Fund IV - Investing in Israeli Founders

UpWest Closes $70 Million Fund to Support Israeli Founders

UpWest, a venture capital firm spearheaded by Shuly Galili, Gil Ben-Artzy, and Assaf Wahrhaft, has announced the successful closing of a $70 million fund.

This marks the fourth fund established by the firm throughout its decade-plus history.

Focus on U.S. Market Entry for Israeli Startups

UpWest distinguishes itself by concentrating on providing funding and comprehensive support to Israeli founders.

The firm’s primary objective is to facilitate these founders’ early entry into the U.S. market.

Early Successes and Portfolio Growth

Initial fund sizes were under $10 million, but generated substantial returns for Limited Partners (LPs).

These returns were driven by strategic investments in companies like SentinelOne, which achieved a public valuation exceeding $10 billion.

Other notable companies within the UpWest portfolio include Honeybook (valued at over $2 billion following its latest funding round), Stampli, Imbuit, and CyCognito.

Increased Investment Capacity

As the firm has matured and demonstrated success, its capacity for proactive investment within the startup ecosystem has grown.

UpWest is now positioned to lead pre-seed and seed funding rounds.

The firm has already initiated seed investments in four stealth-mode companies, utilizing capital from its newly secured fund.

Sector Expertise

While remaining sector-agnostic, UpWest has cultivated deep expertise in areas where Israeli technology excels.

These areas include cybersecurity, artificial intelligence (AI), cloud infrastructure, DevOps, and fintech.

Emerging Opportunities

Shuly Galili shared with TechCrunch that significant opportunities exist in the modernization of data.

Specifically, she highlighted potential within industries like the supply chain and healthcare.

Expansion to Tel Aviv

In conjunction with the fund announcement, UpWest revealed the opening of a new office in Tel Aviv.

This strategic move aligns the firm’s structure with many of its portfolio companies.

These companies typically maintain a headquarters in the U.S. while operating an engineering team in Israel.

Israel's Maturing Ecosystem

“Israel consistently serves as an indicator of emerging innovation and new technologies,” Galili stated.

“The ecosystem is maturing, evidenced by the increasing number of unicorns and the substantial capital flowing into late-stage ventures.”

Galili also noted the influx of new investors into Israel, with billions of dollars being allocated to promising startups.

However, she believes the seed stage remains an area where UpWest can leverage its decade of specialization, established infrastructure, and strong relationships to capitalize on opportunities.