S Capital Raises $120 Million 2nd Fund For Israeli Early Stage, Deep Tech Startups

Israeli venture capital investment firm S Capital raised $120 million for its second direct investment fund called S Capital II which focuses on early-stage and deep tech startups, the company announced Monday.

The new fund will bring the VC’s total committed capital to $270 million, since its establishment in 2018, S Capital said.

It will invest across a broad range of technology sectors including insurtech, fintech, machine learning, AI, enterprise software, cybersecurity and IT.

S Capital partners founding partners Haim Sadger and Aya Peterburg said the fund deepens the company’s commitment to next-generation technology companies as it leans in with its unique experience to support winning teams in a time of crisis.

”After the stock market crash in October 1987, Sequoia Capital was the first to invest in a small startup named Cisco. That initial investment and their total commitment helped Cisco go all the way to the top. Today we know, many successful startups are born in times of crises,” Peterburg said.

They also said the new fund exceeded its fundraising target.

“Building companies during times of adversity requires a different management approach and is an essential experience for funds. I faced two major crises in 2000 and 2008 and while this pandemic presents new challenges, many of its economic characteristics are similar to previous crises, said Sadger, who is also a former founding partner of Sequoia Capital Israel.

Founded in 2018, S Capital’s first fund has invested in nearly a dozen startups including automated AI predictive analytics platform Pecan.ai and
API threat protection solution Salt Security.