Investment giant Accel has completed the raising of a new $650 million fund intended for investments in startups in Israel and Europe. The fund, the eighth of its kind, will primarily focus on early-stage companies.
Accel has invested to date in over 200 companies in Israel and Europe, solidifying its position as one of the largest venture capital players in the region. In Israel, the company has invested in about 30 companies, including Fiverr, Snyk, Melio, and others. In the last two months, the fund invested in Cyera, Vorlon Technologies, and Oasis Security.
Harry Nelis, a Partner at Accel who is responsible for European operations, said, “Raising an eighth fund to invest in Israel is no longer a brave decision; it doesn’t matter what the situation is here. The first fund for activity in Israel, in 2000, was brave. Since then, Israel has always been one of our key markets, and we hope it will continue that way.” He added, “When we started investing in Europe and Israel, this entire market was a billion dollars, and last year it reached $66 billion.”
Accel is considered one of the most significant funds globally, with early investments in companies such as Meta, Dropbox, and Spotify, as well as being a top investor in Israeli and European unicorns in their A round.
Regarding the reactions of the fund’s investors to the announcement of significant investments in Israel, Nelis explained, “People asked about Israel during the fundraising, and we answered that there is a 30-year-old technological ecosystem here that has already experienced events similar to those it is experiencing now, albeit not on the same scale. We also explain that development is done in Israel, while the market and business are often in the USA. The team members of the fund have physically visited Israel, and we have been here several times since the outbreak of the war.” Nelis also mentioned that assuming the fund’s capital distribution remains consistent with the past, Israel will be one of the three largest countries it invests in, alongside Great Britain and Germany or France.
