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F2 Venture Capital

About

F2 Venture Capital is a Tel Aviv-based VC firm that invests in early-stage technology companies on the cutting edge.

Our team members have been investors, operators, and engineers in startups and multinational giants that changed the game over the last twenty years. With $500 million assets under management, F2 powers visionary founders on their bold missions with personalized support.

F2 also operates The Junction, Israel's most active pre-seed investment platform, to back founders with guidance, network, and capital from day zero.

What does F2 stand for?

F2 stands for “Power to Founders”. Our team is here to augment and support your team with the guidance, network and capital to hit your milestones and realize your vision.

What are our core values?

Our core values are trust, boldness and efficiency. All of our team members share these values that are inspired by the values that Israel’s special forces use to accomplish daring missions against all odds.

When was F2 established?

We launched our first fund in 2017. Our founders spun out of Genesis Partners, one of Israel’s most established and respected VC funds over the last 25 years. We are currently investing out of our second fund raised in 2019.

Which notable companies have we backed?

Our partners have previously backed Bizzabo, Click Software (Acquired by Salesforce), Crossrider (FTSE IPO), eToro, FundTech (NASDAQ IPO), Innovid, Kidaro (Acquired by Microsoft), Monday.com, Neebula (Acquired by ServiceNow), ObserveIT (Acquired by Proofpoint), Optimove, PrimeSense (Acquired by Apple), R2Net (Acquired by Signet) and Simplex, among many others from seed stage to exit.

Who backs F2?

We are backed by institutions and family offices on every continent except Antarctica. Many of our investors are successful founders themselves and routinely help our portfolio companies with advice and support on the ground. F2 is also supported by InnovFin Equity, with the financial backing of the European Union under Horizon 2020 Financial Instruments.

Where do we focus?

We back deep technology companies at the junction of Big Data, Artificial Intelligence and Connectivity. These are B2B or B2B2C enterprise software companies with R&D in Israel.

Do we focus on particular industries?

We believe technology will disrupt every market, so our approach is industry agnostic. We back companies in cyber security, digital health, financial services, HR, insurance, media, real estate, retail and software infrastructure, among other areas. We do not invest in hardware or biotech.

At which stage do we invest?

It is never too early to get in touch with our team. We love sharing ideas and tailor our approach to support founders at the concept, pre-seed and seed stages.

How much do we invest?

F2 typically leads seed rounds with checks of up to $4M. We reserve additional funds for follow on rounds in high growth companies.

What do we look for in a startup?

In order to take our investment decisions, we evaluate the team, market, value proposition, technology and commercial validation. The team is by far the most important factor for us.

What do we look for in the team?

We are looking for authentic entrepreneurs – women and men who could not imagine doing anything except their venture and have a large vision for their company. Founders should also complement each other in terms of technical and commercial skills. We also love to back “first timers”.

What do we look for in the market?

We are interested in game changing startups targeting large, existing markets like financial services and healthcare, or small but rapidly growing markets like artificial intelligence.

What do we mean by value proposition?

We are looking for compelling concepts with a clear business model and a unique approach to solving big problems. Timing is also critical; we ask, “why now?"

What do we mean by technology?

We look for startups whose technology can provide a moat or barrier to entry for competition and support a great product and user experience.

What do we mean by commercial traction?

We look for evidence of product-market fit. At the early stage, this usually comes in the form a small but passionate set of customers who view your service as “mission critical”.

What is our investment process?

Our investment process generally follows five steps:

  1. First meeting with our team. In advance of our first meeting, we will review any materials you want to share. This will help us ask the right questions to ensure there is a fit. Our first meeting (or call) will be 45 minutes to cover the basics and feedback.
  2. Follow up meetings with our team. Most of our “passes” happen after the first meeting. Follow up meetings mean we are genuinely interested in your startup and want to learn more. You will meet additional team members to address questions and concerns. It’s also our chance to share more about F2 and how we can help.
  3. Meetings with outside experts. Over the last 25 years, we have had the privilege to work with founders across every sector. We will match you with domain experts from our network who help us to build conviction and respond efficiently.
  4. Meeting with our Investment Committee. Our general partners comprise the investment committee of the fund. We meet every Monday and will invite you back to share the entire story and address the questions that arise in our process.
  5. Final Decision. We take all investment decisions as a team by unanimous vote of the general partners. Our goal is to give you a final decision within 24 hours following the meeting with our Investment Committee.

How long does our process take?

While we follow the same steps for every company, the timing of our process varies based on the investment criteria and our level of conviction. It can range from two weeks to two months but generally we strive to complete a thorough process as fast as possible.

Is there a fast track?

The Junction is our fast track to investment. The program is designed for strong founding teams that are still developing one of or more parts of their business plan. We can move as fast as one week to provide pre-seed funding in these situations.

Does F2 only back companies from The Junction?

No. F2 invests in the seed stage in companies from The Junction as well as directly into companies that do not start at The Junction. We harness the network of founders and partners around The Junction to support all of our companies.

What is The Junction?

Established in 2011 at Genesis Partners, The Junction is our pre-seed investment program to help founders achieve technological, product and business targets in an accelerated time frame.

What are some notable companies from The Junction?

The Junction has launched more than 200 companies including AppsFlyer, HoneyBook, Simplee, ClarityRay, HouseParty, CyberX, Mobilize and many others that have raised close to $1 billion from top VC funds and realized multiple exits to tech giants.

What value does The Junction provide?

Over a 6 month period, startups in the program receive tailor made support in strategy development, positioning, sales & marketing and recruitment, among other critical areas.

The Junction provides 5 layers of support to founders:

  1. Guidance. Expert guidance from investors, alumni and industry experts.
  2. Network. Access to multinational partners for commercial pilots and investment.
  3. Capital. Pre-seed funding from F2 on founder-friendly terms.
  4. Operations. Support in positioning, business development and HR from industry experts.
  5. Perks. Free workspace, credits and discounts for cloud hosting and additional services.

What are the terms of the program?

The terms of the program are simple. F2 invests on a SAFE (Simple Agreement for Future Equity) that converts into your seed round at a discount with no cap on the valuation. In addition, F2 has the right to participate in your seed round, on the terms of the round.

How do you apply to The Junction?

Contact us with your background and vision and we will follow up with you within 48 hours. If your focus fits our areas of focus, we will invite you for a meeting and give you a decision within 7 to 14 days.

Does F2 continue to invest in companies from The Junction?

Yes. We can lead or join the seed investment round in companies from The Junction. In fact, this is why we run the program – to get to know you, add value and give you the opportunity to get to know us – to build a strong and successful partnership with you for the long term.

How much do we invest in a company?

F2 typically leads seed rounds with checks of up to $4M. We reserve additional funds for follow on rounds in high growth companies.

Will F2 join a round with another VC?

Yes. We often partner with other top funds, multinationals and strategic angels from our network and yours to build the best possible team and support your growth.

What makes F2 different?

F2 is a specialized fund with a clear mandate to back seed stage, deep technology companies in Israel. We are totally aligned to help you reach your milestones and bring additional top global funds for your round. In addition to our team of investment and HR professionals and portfolio companies, The Junction community with hundreds of founders and partners pay it forward to support you with collective wisdom and partnership.

How do you support your companies?

The companies we have previously backed have raised billions of dollars in follow-on capital. We leverage our experience and relationships – built over decades – to help you build the right pitch and connect with your ideal partner. As market conditions shift and Series A pools shrink, this kind of resource becomes a serious advantage to our founders.

Will F2 support you in future rounds?

On day one we set milestones together and help you achieve them. We want to be your first call when you hit an obstacle so there are no surprises, and we continue to invest in your Series A round and beyond as you execute on plan or pivot with the market.

How does F2 help you with HR?

Our Head of People is dedicated to help you connect and screen top talent to build your team. As a trained psychologist, she also coaches our founders through inevitable tensions and challenges in order to perform at your best, as individuals and as a team.

Does F2 take board seats?

F2 takes a board seat in companies when we invest at the seed stage and are most active helping you build your company in the first years. Outside of the board, we prefer to meet one-on-one to help you navigate challenges and opportunities on your growth trajectory.

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