Israel’s Greenfield Partners Closes New $350M Fund

Israeli-based investment firm Greenfield Partners, announced on Thursday the final close of new investment funds totalling $350 million. 

The new capital includes Greenfield Partners Fund II, which is on track to invest in 15 early growth stage startups (B and C rounds), and several additional investment vehicles that will support Greenfield’s existing portfolio companies at later stages. Greenfield Partners Fund II has already invested in Capitolis, Coralogix, Cynet, Silverfort, Panorays, EquityBee, Mixtiles, DustPhotonics, Planck, and Quali.

The new funds bring the investment firm’s total assets under management to over $500 million. 

Initially established in 2016 by capital market company TPG Growth, Greenfield Partners primarily focuses on enterprise software and invests in fintech and consumer/internet industries, while targeting tech-based companies in their early phases. Greenfield supports founders and their companies in their transition from isolated R&D stages, global expansion in which fleshing out go-to-market functions become central to their operations. 

Greenfield Partners prior investments include cloud security company Guardicore, which was sold to Akamai in October 2021; email security company Avanan, which was sold to Check Point last year; and unicorns VAST Data and BigPanda, both recently valued at $3.7 billion and  $1.2 billion, respectively. 

“We are at a period when the market is placing greater emphasis on healthy unit economics, which is where our expertise lies, after several years where we saw investors rewarding growth at all costs,” says Shay Grinfeld, managing partner at Greenfield. “We invest in companies after years in which the companies’ management was focused on R&D, product-market-fit, and initial build-out of its sales function. At the early-growth stages where we enter, new challenges emerge and we have the expertise and the tools to work with founders to ensure they manage them in the optimal way.”

“In this period of market volatility, we are grateful for our ability to continue to support Israeli entrepreneurs and promote innovation through our new funds,” says Yuda Doron, managing partner at Greenfield. “We see where the company needs to be a few years down the road and work closely with them on building their sales organizations, recruiting executives, opening international offices, improving KPIs, and developing scalable internal processes, which together set up our portfolio companies up for long-term success. We have been active in the Israeli technology ecosystem for many years and thank some of the world’s leading investment managers who have chosen to partner with us and believe in the Israeli technology market.”