Insight Partners, US venture capital firm, is increasing its focus on seed and series A funding in Israel.

Jeff Horing, the firm’s founder, visited Israel this week to discuss this shift from their traditional late-stage investment strategy amid rising competition.

The firm has invested in Israel for over two decades, backing companies like Wiz, monday.com, and Wix. Insight has also seen successful exits, including the sale of Own to Salesforce and the acquisition of Run:AI by Nvidia.

Earlier this year, Insight closed its 13th fund, securing US$12.5 billion in committed capital. Much of this capital is still available for investment.

Insight still operates an office in Israel, led by Dani Aronovitz. The firm is investing at a pace similar to that of Silicon Valley.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Insight’s strategic pivot mirrors broader shifts in global venture capital

Insight Partners’ shift toward early-stage investments in Israel reflects a significant transformation in the firm’s approach since it first entered the market.

When Insight made its first Israeli investment in Wix (now valued at $10B), the firm primarily focused on late-stage deals, but has systematically expanded its presence by opening its first international office in Tel Aviv in 2019 and investing over $700 million in the country’s tech ecosystem1.

This evolution reflects broader trends in venture capital, where increased competition at later stages has pushed traditionally growth-focused firms earlier into the investment cycle.

Insight’s trajectory in Israel—from occasional later-stage investor to maintaining a permanent local presence with dedicated teams—demonstrates how global VCs are adapting to increased competition by embedding themselves more deeply in local ecosystems rather than investing opportunistically from afar.

The firm’s approach of combining capital with operational support through its 50+ in-house growth operators highlights how top-tier VCs now compete on value-add services beyond just funding2.

2️⃣ Israel’s startup ecosystem faces critical AI inflection point

While Israel has established itself as the “Startup Nation” with particular strength in cybersecurity and enterprise software, Horing’s assessment that “Israel doesn’t yet have a standout company in AI models or even AI tools” highlights a crucial challenge.

Israel ranks fourth globally in AI advancements with approximately 2,300 AI-focused startups representing 25% of its tech sector3, but faces a notable gap in foundational AI model development compared to U.S. leaders.