Key Takeaways
- • Bessemer Venture Partners says 2025 was its most active year ever in Israel by both number of investments and capital deployed, according to partner Amit Karp, who said the pace is still accelerating.
- • Bessemer, founded in the U.S. in 1911 and managing approximately $20 billion in assets, has invested in more than 450 companies and participated in more than 155 IPOs, and says it has more than 13 Israeli portfolio companies that have crossed $100 million in annual recurring revenue.
- • Karp argues that Israeli founders now aim to build global companies rather than pursue quick exits, and that go-to-market execution, especially sales and marketing in cybersecurity, is the main gap separating winners.
- • Karp describes AI as a fundamental baseline for cybersecurity, stating that a new company founded today that is not AI-native has no future.
Summary
Venture capital firm Bessemer Venture Partners (BVP), founded in the U.S. in 1911 and now managing approximately $20 billion in assets, continues to treat Israel as one of its key growth engines, more than three decades after it began investing there. According to Amit Karp, a partner based in the firm's Israeli office, the past year was the most active Bessemer has had in Israel in terms of both investment count and capital deployed. He said the firm's advantage lies in combining local partners who know founders closely with a single global fund that can support companies from early stages through post-IPO, including opening doors to customers, partners and employees when Israeli companies expand into the U.S.
Karp said Bessemer's Israeli portfolio already includes more than 13 companies that have crossed $100 million in annual recurring revenue, out of roughly 60 Israeli companies at that level overall, which he cited as evidence of high success rates. He said the ecosystem has shifted from founders focused on quick exits toward companies aiming for large global businesses, and that the firm needs companies capable of generating tens of billions of dollars in returns. Bessemer's broader portfolio includes Anthropic, Canva, LinkedIn, Perplexity, Shopify and Twilio. In Israel, the firm has backed cybersecurity and software companies including Axonius, Torq and Upwind.
Karp argued that product quality is necessary but insufficient, and that founders often underinvest in go-to-market capability. In cybersecurity, he said, sales and marketing organizations must be world-class to cut through market noise, and companies should build them early rather than waiting for product maturity.
On AI, Karp described it as a fundamental shift rather than an add-on tool, noting that cybersecurity companies are either using AI to rebuild security products or defending against AI-driven threats such as autonomous agents. He said AI-native companies build faster, and that Bessemer is helping existing portfolio companies become AI-enabled, though he acknowledged that retrofitting is more complicated than building from scratch.
Karp expressed optimism about Israeli technology over a five-year horizon despite near-term uncertainty. He attributed the change in ambition partly to the acquisition of Wiz, saying the benchmark for founders has moved from a $1 billion exit to building companies valued at $10 billion or $30 billion.
Karp said Bessemer's Israeli portfolio already includes more than 13 companies that have crossed $100 million in annual recurring revenue, out of roughly 60 Israeli companies at that level overall, which he cited as evidence of high success rates. He said the ecosystem has shifted from founders focused on quick exits toward companies aiming for large global businesses, and that the firm needs companies capable of generating tens of billions of dollars in returns. Bessemer's broader portfolio includes Anthropic, Canva, LinkedIn, Perplexity, Shopify and Twilio. In Israel, the firm has backed cybersecurity and software companies including Axonius, Torq and Upwind.
Karp argued that product quality is necessary but insufficient, and that founders often underinvest in go-to-market capability. In cybersecurity, he said, sales and marketing organizations must be world-class to cut through market noise, and companies should build them early rather than waiting for product maturity.
On AI, Karp described it as a fundamental shift rather than an add-on tool, noting that cybersecurity companies are either using AI to rebuild security products or defending against AI-driven threats such as autonomous agents. He said AI-native companies build faster, and that Bessemer is helping existing portfolio companies become AI-enabled, though he acknowledged that retrofitting is more complicated than building from scratch.
Karp expressed optimism about Israeli technology over a five-year horizon despite near-term uncertainty. He attributed the change in ambition partly to the acquisition of Wiz, saying the benchmark for founders has moved from a $1 billion exit to building companies valued at $10 billion or $30 billion.
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