Two venture capitalists, David Citron and Alan Buch, have launched TBD VC, a US$35 million fund designed to support Israeli startups.

The fund was inspired by a meeting at the Zikim military crossing near the Gaza border during the current conflict between Israel and Hamas.

TBD VC plans to invest US$1 million in approximately 20 startups founded by Israeli entrepreneurs.

It will focus on sectors such as cybersecurity, enterprise software, and technical infrastructure.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Crisis-born funds often combine commercial objectives with social missions

TBD VC’s emergence during wartime places it in a pattern where venture funds born during crises often develop unique dual objectives beyond financial returns.

The fund’s commitment to donate profits to Back the Warrior directly reflects research showing entrepreneurship plays a critical role in post-conflict recovery and peacebuilding efforts 1.

This aligns with findings from post-conflict entrepreneurship studies that recommend tailored policies considering unique regional challenges, which TBD VC addresses by focusing specifically on Israeli founders 1.

The integration of social impact alongside traditional VC investment follows a broader trend seen in crisis-response entrepreneurship, where business creation becomes both an economic and social stabilizing force.

By connecting discharged soldiers to tech careers, TBD VC addresses a documented gap identified in research: the need for bridging mechanisms between post-conflict human capital and emerging economic opportunities.

2️⃣ Early-stage investors adjust strategies during geopolitical uncertainty

TBD VC’s focus on pre-Seed and Seed stages during wartime parallels findings that younger VC firms often modify their investment approaches during crises while maintaining their core observable practices 2.

Their Venture Partner program that connects portfolio companies with executives from major global companies represents the type of increased post-investment activity that 46% of VCs adopted during the COVID-19 crisis 2.

The fund’s strategy of leveraging experienced advisors from established companies addresses a key tension in early-stage investing, balancing rapid growth expectations with sustainable business model development.