Surround Ventures, an Israeli-American venture capital firm, has announced the first closing of its second fund, targeting at least $50 million. The new fund will concentrate on early-stage deep-tech and defense-tech startups with strong ties to Israel's innovation ecosystem. Led by partners Jared Kash, Yaron Kniajer, and Haim Zilbershats, the fund aims to address critical global challenges through its investments.
A Confluence of Expertise and Innovation
The fund's strategy centers on the intersection of Israel's primary sources of deep-tech innovation: elite military technology units and leading academic institutions. This unique position provides differentiated access to exceptional founders and their groundbreaking technologies. The leadership team combines diverse backgrounds in media, technology, and military operations, creating a robust support system for its companies.
The three partners bring a wealth of experience to the firm. Yaron Kniajer previously served as a senior executive at Rhodium Fund, while Jared Kash co-founded successful ventures like JSwipe and Beard Club. Haim Zilbershats, a cofounder of the IDF Special Operations Alumni Association, connects the fund directly to military-bred entrepreneurs.
Building on a Successful Track Record
Surround Ventures II is launched following the significant successes of its predecessor fund. The first fund demonstrated a keen eye for promising ventures, including an early investment in XTEND, a defense robotics company. XTEND recently announced a merger with a publicly traded company at an estimated valuation of approximately $1.5 billion.
Another notable investment from the first fund was QuamCore, which is developing next-generation quantum computing architectures. The company recently secured $26 million in a subsequent funding round, validating Surround's early belief in its potential. Other successful exits from the initial fund include Imgn Media, acquired by Warner Music, as well as XED and Solvo.
Pioneering Future Technologies
The new fund has already begun deploying capital into several promising sectors. One such investment is Cellergy, a biotechnology company working on mitochondrial transplantation to treat diseases and enhance human performance. The company was founded by the same team behind Emendo Biotherapeutics, which was acquired for an estimated $250 million.
In the energy sector, the fund has backed Terrawave, a company with an innovative drilling method for accessing geothermal energy sources. The partners emphasize their belief that the future lies in companies rooted in deep science, remaining open to new fields. This flexible approach ensures they can capitalize on the most disruptive innovations as they arise.
Strategic Backing and Institutional Recognition
Surround Ventures is supported by strategic investors, including successful Israeli tech entrepreneurs and private investors from the US, Europe, and Australia. The fund's advisory board features prominent figures like former Weizmann Institute President Prof. Daniel Zajfman and former Intel Israel CEO Yaniv Garty. This network provides invaluable guidance and industry connections.
Further validating its strategy, the fund was selected for the Israel Innovation Authority’s Deep Tech Venture Capital Program. This government initiative aims to accelerate Israeli deep-tech innovation by offering grants to promising venture capital funds. The selection underscores the firm's strong positioning and commitment to fostering technologies with global impact.
With its second fund, Surround Ventures is poised to continue its mission of transforming Israeli science into global commercial success. The firm's unique access to talent, experienced leadership, and strong institutional backing create a powerful platform for deep-tech companies. This new capital will fuel innovation in critical sectors like defense, AI, biotechnology, and energy.
Source: Globes.co.il