In a bold move set to reshape the Israeli tech landscape, TBD VC has unveiled a groundbreaking $35 million venture fund aimed specifically at nurturing deep tech startups. This early-stage venture capital firm plans to target pre-seed and seed-stage companies, not only in Israel but also globally.

The fund’s debut coincides with a surge of impressive achievements from Israeli tech firms, underscored by notable exits like Wiz’s phenomenal $32 billion acquisition by Google and Next Insurance’s stunning $2.6 billion exit. These success stories underline Israel’s growing reputation as a hotbed for innovative tech ventures.

Despite this flourishing environment, the fund's founders, David Citron and Alan Buch, contend that many early-stage companies are still flying under the radar and lack adequate support.

"We’re here for deeply technical founders who are committed to building substantial companies from day one," Citron stated from his Tel Aviv base. The fund aims to invest in around 20 companies, focusing on sectors such as enterprise AI, cloud infrastructure, cybersecurity, and software-enabled defense technologies.

With pre-seed investments of approximately $1 million, TBD typically leads fundraising rounds, but also collaborates with other investors for seed rounds, leveraging support from a diverse group of institutional investors, family offices, and seasoned tech entrepreneurs.

Citron, with over a decade of experience under his belt—including a notable stint at Rocket Internet—has a proven track record investing in various fields from cybersecurity to enterprise software. His notable past investments include CyberX, WalkMe, and Eon.io, which has been dubbed Israel's “next Wiz.”

Echoing his dedication to specialize in pre-seed stages, Citron remarked, "We are not trying to cater to everyone; we prioritize first-time founders and focus on execution." He aims to carve out a niche for his firm amidst the broader investment landscape.

While Citron acknowledges the thriving gaming industry in Israel, he remains steadfastly focused on infrastructure and enterprise investments. "I’m an infrastructure investor at heart, aiming to stick to what we excel in," he explained.

Co-founder Alan Buch, operating from New York, contributes a broader global perspective with his extensive experience in alternative investment management and his background in professional racing. "Startups and racing share more similarities than one might think—it's all about strategy, timing, and instinct," he noted.

With a robust network of over 45 venture partners—seasoned veterans from companies like Github and Netflix—TBD aims to provide their portfolio companies with unparalleled mentoring and strategic support to streamline their journey toward commercialization.

Citron emphasized that despite challenges like the current situation in Gaza, he remains optimistic about the future of the tech sector in Israel. "Israel continues to be the prime location for technical talent, but our focus now stretches globally, catering to the next generation of innovators."

Notably, Citron’s previous fund of the same size was a standout performer, yielding a two-times return so far, setting high expectations for this new venture. As he reflects on the exciting prospects of the Israeli startup ecosystem, he can't help but express enthusiasm: "Being the first investor in the pre-seed stage is thrilling. We’re poised for a transformative era for Israeli enterprise startups."