Entrée Capital has raised two new funds totaling $300 million, bringing its assets under management to $1.5 billion. The capital will be primarily deployed across pre-Seed, Seed and Series A investments.
Entrée Capital has backed over 180 companies, including monday.com, SeatGeek, Gusto, Rapyd, Riskified, Coupang, Deliveroo, Breezometer, PillPack, and Glovo. The firm has returned more than $3 billion to investors to date, and achieved over 43 exits and IPOs. This has been validated by Entrée’s reaching #1 on Forbes EMEA VC Midas List, and #16 on Forbes Global VC Midas List in the past two years.
“It’s a $300 million fund, but it’s strategically split,” says Avi Eyal, co-founder and managing partner at Entrée Capital. “We have the core fund, about $125 million, intended for Seed and pre-Seed stages, along with reserves. The second part, $175 million, is intended for slightly more advanced stages, A and B rounds.
“With $125 million, we plan to do about 25-30 deals. We will lead some of them and join others. It’s important for us to keep about 50% of the fund for follow-on investments in the most successful companies.
“Since 2020, our strategy has been to invest specifically in companies we missed in the early stages. Other funds lead the Seed, and we enter later, when the company is more mature and focused. We have about 13 investments in this fund so far. We understand what is happening with these companies, and we have the advantage of seeing the full picture. It’s a winning strategy we are continuing.”
Eyal outlines four core areas of investment: “There is classic deep tech, which we’ve been doing for many years, quantum, and so on. We also have crypto infrastructure and security, where we have an expert on the team. The third and largest segment is business and corporate software (SaaS), with a lot of AI and some cyber. The fourth is different, and it works amazingly well for us: defense tech. Thanks to Ran Achituv, who is deeply involved in that domain, we do deals that others don’t.”
Eyal also says valuations have drifted too far from fundamentals. “We’re seeing a significant decline in some public shares, and private markets will need to meet the public markets. Airtable is worth $12 billion and is a third the size of monday.com. This is not about AI; the private market needs to realign with reality.”
He agrees a bubble has formed in Israeli cybersecurity. “There is a cyber bubble in Israel. It goes back to the same calculation: what are the public companies that buy them worth? Google can buy Wiz because Google’s value is in the trillions, because of AI, but cyber companies in the public market are not at the incredible valuations they were two years ago. That gap tells the story.”
Entrée Capital, founded 15 years ago and led by serial entrepreneurs, currently includes seven partners (including four general partners), supported by teams in platform, finance, marketing, and R&D. The general partners are Ran Achituv, Yoni Osherov, Eran Bielski, and Avi Eyal.