Israeli VC firm Crescendo to raise up to $100m for early-stage fund

Israel-based Crescendo Venture Partners said it is looking to raise US$80 million to US$100 million to back local early-stage software startups.

The new fund has completed its first close, according to a statement, with a final close expected during the first half of next year.

From left: Crescendo managing general partner Yuval Avni, general partners Zvi Schechter and Tal Mizrahi, and analyst Jean-Marc Liling / Photo credit: Crescendo Venture Partners

The company said it will invest in companies in big data, AI, and machine learning sectors, with a focus on software that transforms traditional sectors like agriculture, education, construction, and health care.

The new fund, which began operations just this year, has already made its first investment when it led a series A funding round for Lightico, an Israeli startup that automates the last-mile customer journey in contact centers.

“Despite the huge potential of startups in early stages, there is a gap between the financing needs of these companies and the amounts investors actually invest in this stage,” said Crescendo managing general partner Yuval Avni, adding that the fund aims to bridge this gap.

Avni leads Crescendo alongside Zvi Schechter and Tal Mizrahi, all former partners at seed and early-stage investment firm Giza Venture Capital.

“Crescendo will place at the disposal of those entrepreneurs a combination of capital, business experience, and a network of global contacts with potential customers, partners, and investors from around the world, who are yearning to connect and cooperate with innovative startups from Israel,” Schechter said.

The fund was established in partnership with Switzerland-based Crescendo Group, which manages client assets worth more than US$3 billion across eight offices globally.