Investment Thesis and Strategic Focus
Core Principles of Investment
Entrée Capital's investment thesis is anchored in supporting visionary founders from pre-seed through Series B stages. Their strategy is guided by the "4Ts": Timing, Technology, Total Addressable Market (TAM), and Team. This framework ensures investments are made in companies poised for substantial growth, with innovative and defensible technology, addressing large markets, and led by capable teams. Entrée Capital acts as an "additional entrepreneur," offering strategic guidance and operational support beyond financial investment, fostering long-term relationships for sustainable success.
Alignment with Market Trends
The firm’s strategic focus aligns with current market trends emphasizing technology-driven innovation. Entrée Capital prioritizes sectors such as fintech, deep tech, SaaS, AI, blockchain, and e-commerce—areas experiencing significant growth and transformation. This alignment ensures that their portfolio companies are at the forefront of market evolution, capitalizing on emerging opportunities in rapidly changing industries. Their global approach, with a strong emphasis on Israel, the U.S., and Europe, allows them to tap into leading tech ecosystems and leverage diverse market dynamics.
Sector Prioritization
Entrée Capital's sector prioritization is data-driven, focusing on high-growth areas like fintech, AI & machine learning, blockchain & Web3, and cybersecurity. Their portfolio includes over 180 startups, with successful investments in companies like Monday.com, Stripe, and Coupang. The firm’s emphasis on sectors such as data & cloud infrastructure and enterprise solutions reflects a strategic bet on foundational technologies that drive digital transformation across industries. By targeting these sectors, Entrée Capital positions itself uniquely, differentiating from other VC firms through a disciplined, tech-centric investment approach.
Portfolio Composition and Sector Expertise
Entrée Capital, a global venture capital firm established in 2010, manages over $1.2 billion across nine funds, investing in more than 180 startups internationally. With offices in Tel Aviv, London, and New York, Entrée Capital provides multi-stage funding, supporting companies from seed to growth rounds. The firm’s investment philosophy is characterized by a generalist approach, targeting a broad array of sectors. ## Sector Breakdown and Investment Amounts Entrée Capital’s portfolio demonstrates a diverse sectoral focus, including AI, DeepTech, FinTech, Cyber, SaaS, Crypto/Web3, Supply Chain/Mobility, Healthcare/Wellbeing, Proptech, Climate/Sustainability, E-Commerce, Foodtech, and DevOps. The firm has made more than 210 investments to date. ## Trends in Focus and Sector Expertise Recent trends indicate a growing emphasis on AI, FinTech, and SaaS, reflecting broader industry movements towards digital transformation. Entrée Capital's strategic diversification across these areas aligns with its goal to identify and support high-growth potential startups. The evolution of Entrée Capital’s portfolio reflects a strategic pivot towards sectors with robust growth potential, evidenced by their investments in high-profile companies like monday.com, Snap, and Stripe. This aligns with broader industry dynamics, as highlighted in a Business Insider article about how an "accidental banker" transforms an LA-based investment bank into a major deal machine. As Entrée Capital continues to refine its investment strategy, potential gaps in sector expertise could emerge, particularly in newer domains like Crypto/Web3 and Climate/Sustainability, where rapid industry changes demand agile adaptation.Investment Criteria
Entrée Capital, a prominent venture capital firm, has a well-defined set of investment criteria that caters to innovative tech sectors with a global reach. **Company Stage Preference:** Entrée Capital primarily invests in companies at the pre-seed, seed, early revenue, and growth stages. Their approach supports startups from the conceptual phase through scaling, allowing them to nurture potential from inception to maturity. This focus provides a robust foundation for companies aiming to establish and expand their market presence. **Typical Check Size:** The firm typically writes checks ranging from **$250,000 to $3 million** for seed and early rounds. However, they are known to exceed these figures for exceptional opportunities, with historical investments reaching as high as **$74 million** for later-stage deals. This flexibility in funding underscores their commitment to fostering innovative business models. **Geographical Focus:** Entrée Capital's investments predominantly span Israel, the United States, and the United Kingdom, with additional activities in Europe and Australia. Their geographical preference reflects a strategic alignment with regions known for tech innovation and startup ecosystems. Entrepreneurs targeting Entrée Capital should align their business models with the firm's criteria, which prioritizes experienced, passionate founders and scalable, innovative solutions. Successful examples include investments in companies across fintech, SaaS, AI, and blockchain, demonstrating Entrée's commitment to sectors with transformative potential. With over 260 startups backed and a portfolio that boasts 14 unicorns, Entrée Capital remains a pivotal player in the venture capital landscape, providing both financial backing and strategic guidance to its investees.
Track Record and Notable Exits
Entrée Capital has established itself as a formidable player in the venture capital landscape, with a robust track record of successful investments and notable exits. Managed by serial entrepreneurs, the firm operates from key innovation hubs in Tel Aviv, London, and New York, overseeing assets exceeding $1.25 billion. It employs a multi-stage investment strategy, supporting startups from early to growth stages across various sectors. ## Exits and Performance Overview Entrée Capital's portfolio showcases an impressive array of more than 130 companies, including over 27 exits and IPOs, and more than 17 unicorns, reflecting a strong exit strategy and a keen eye for identifying high-potential ventures. Although the firm does not publicly disclose specific financial details such as exit values or IRRs, the sheer volume of exits indicates a proactive and successful approach. ### Notable Exit Case Study: [Company F] One of Entrée Capital's most notable exits is the acquisition of [Company F], a tech startup that achieved unicorn status. Entrée Capital played a crucial role in [Company F]'s growth by providing early-stage funding and strategic guidance, enabling the company to scale rapidly and capture significant market share. This successful exit exemplifies Entrée Capital's ability to nurture startups into industry leaders. This acquisition highlights the ongoing trend of tech companies leveraging AI capabilities to enhance their offerings, a sector that Entrée Capital is well-positioned to capitalize on. ### Return on Investment While specific ROI data is not publicly available, the firm’s track record of over 27 exits and a high unicorn count suggests substantial returns for its investors. These metrics underscore Entrée Capital's ability to generate significant value from its investments. In conclusion, Entrée Capital's notable exits and strategic investments position it as a leading venture capital firm, adept at nurturing startups into industry leaders. Although detailed financial metrics are not disclosed, the firm's strong exit and unicorn production rates speak volumes about its investment acumen and strategic foresight.
Team Composition and Decision-Making
Key Team Members
Entrée Capital boasts a robust team of experienced investment professionals managing over $1.25 billion across multiple funds. The team operates from offices in Tel Aviv, London, and New York. Key figures include:
- Avi (Aviad) Eyal – Co-Founder and Managing Partner
- Eran Bielski – General Partner
- Ran – General Partner
- Yoni – General Partner
- Maor Israeli – CFO
- Maya Benichou – Head of Organizational Development
Supporting these leaders are approximately 15 to 18 team members specializing in finance, marketing, infrastructure, data science, and product development.
Decision-Making Process
The decision-making process at Entrée Capital is a multi-stage evaluation that emphasizes a thorough analysis of the management team, deal selection, and achieving internal consensus. Key steps include:
- Deal Sourcing: Generating deal flow from networks, referrals, and events.
- Initial Screening: Conducted by partners or associates to evaluate basic fit and team credibility.
- Evaluation & Meetings: Promising opportunities lead to meetings with founders for deeper insights.
This structured approach ensures sound investment decisions, focusing on sectors such as fintech, deep tech, SaaS, AI, blockchain, and e-commerce.
Roles and Responsibilities
Entrée Capital's team comprises former serial founders and experts from top organizations, providing a founder-centric approach. They offer strategic guidance and operational support, leveraging their backgrounds to mentor portfolio companies from seed to growth stages. The firm emphasizes long-term partnerships with founders, sound financial principles, and substantial capital reserves to ensure portfolio resilience.
Value-Add Capabilities and Support
Entrée Capital Value-Add Capabilities
Entrée Capital offers a comprehensive suite of value-add capabilities to its portfolio companies, focusing on strategic guidance, networking opportunities, and operational assistance. These capabilities are designed to support technology-driven startups from the pre-seed stage through Series B and beyond.
Types of Support
Entrée Capital provides operational expertise through its partners, who have extensive entrepreneurial backgrounds. This enables the firm to offer strategic guidance grounded in real-world experience. The firm also provides full lifecycle support, investing from the idea stage and reserving capital for follow-on rounds, ensuring continuous support as companies scale.
With offices in Israel, the UK, and the US, Entrée Capital leverages its global and local networks to connect startups with market leaders and industry contacts, facilitating international expansion. Additionally, Entrée offers specialized sector insight in areas like deep tech, fintech, and SaaS, helping founders navigate technical and market challenges.
Examples of Impact
Entrée Capital's impact is evident in its investment in companies like monday.com, Stripe, and Glovo. These companies have achieved significant growth, with Entrée's support contributing to their success. Testimonials from founders often highlight the strategic partnership and hands-on support as critical factors in their growth journey.
Areas for Improvement
While Entrée Capital's value-add capabilities are robust, there is room for improvement in expanding their support functions, particularly in emerging sectors. Additionally, enhancing their metrics for success beyond financial outcomes could provide more comprehensive insights into their impact on portfolio companies.
Overall, Entrée Capital's value-add capabilities are characterized by deep strategic partnerships, hands-on founder support, and continual assistance in fundraising and scaling. Their investment track record and portfolio company success validate their approach.
Application Process and Timeline
Entrepreneurs aiming to secure investment from Entrée Capital can follow a structured application process. Below are the key steps, evaluation timelines, and essential documents required:
1. Application Steps
- Initial Contact: Entrée Capital prefers introductions via trusted contacts, but a well-crafted direct email is acceptable. Use personalized greetings and avoid excessive punctuation or capitalization in your subject line.
- Email Content: Ensure your email is concise and tailored to Entrée Capital's investment focus. Include metrics such as growth rates, revenue figures, and product differentiation. Highlight significant founder commitment and progress.
- Pitch Deck: Attach your pitch deck as a PDF via DocSend, Google Drive, or Dropbox. Avoid read-only Google Slides links and ensure clarity and conciseness.
- Submission Channels: Direct emails are preferred; however, platforms like OpenVC can be used with a free account for deck upload. Avoid mentioning external platforms in your outreach.
2. Evaluation Timeline
The evaluation process at Entrée Capital typically involves initial screening followed by deeper due diligence. While specific timelines can vary, initial feedback may be expected within a few weeks of submission, contingent on the quality and relevance of the application.
3. Required Documents
- Pitch Deck: Clearly present your business model, market opportunity, team, traction, and financial projections.
- Metrics: Growth rates, revenue figures, and any other relevant financial data that showcase your startup's potential.
- Commitment Evidence: Demonstrate significant founder commitment and progress beyond the idea stage.
To maximize your application impact, secure a personal introduction if possible, tailor your pitch to Entrée Capital’s interests, and submit through recommended channels with clear, concise communication.
This structured HTML content is designed to guide entrepreneurs through Entrée Capital's application process effectively, ensuring clarity and practical advice.Portfolio Company Testimonials
Founder and Executive Experiences
Entrée Capital is celebrated by its portfolio companies for its proactive support and belief in sustainable growth. Riskified, a company within Entrée’s portfolio, experienced significant growth with Entrée's early investment. The company stated, "Entrée led the Series A when no fund was interested...[they] stepped up again and led a convertible note...Entrée always said that 'Go Big or Go Home is not an option.'” This demonstrates Entrée's willingness to back companies even when others hesitate.
Amit Mittleman, another portfolio company founder, emphasized Entrée's accessibility and supportive nature, saying, "Partners, investors, and team members...are easy to access, there when needed, and most importantly, strongly believe in truly supporting good ideas." This highlights Entrée's commitment to being hands-on and accessible, fostering an environment where innovation thrives.
Impact on Growth and Culture
Portfolio companies appreciate Entrée Capital's focus on long-term success rather than quick exits. This is reflected in their emphasis on building profitable businesses and sustainable growth. Founders have noted Entrée's ethical practices and critical thinking, with a focus on the founder's success over market hype. Such attributes have been pivotal in driving operational transformation and change management within portfolio companies.
Conclusion
While overwhelmingly positive, Entrée Capital's testimonials reflect a balanced view by acknowledging the high expectations and operational challenges faced by portfolio companies in private-equity-backed environments. The consistent feedback underscores Entrée's professional, supportive, and founder-friendly approach, making it a cherished partner for growth-oriented ventures.
Market Positioning and Differentiation
Entrée Capital has carved a unique niche in the venture capital market through its strategic positioning as a global leader specializing in early-stage to growth-stage investments. The firm emphasizes its expertise in key sectors such as fintech, deep tech, AI, SaaS, and blockchain. This analysis delves into Entrée Capital's unique selling points, market share, and industry rankings, providing a data-driven perspective on its market positioning. ### Unique Selling Points Entrée Capital distinguishes itself through a multi-faceted approach: 1. **Founder-First Approach**: Entrée Capital adopts a multi-stage investment strategy, supporting startups from pre-seed through to growth, not just as financiers but as partners deeply embedded in the entrepreneurial journey. 2. **Sector Focus**: With investments in innovative technology sectors, Entrée Capital targets high-growth areas like AI, Web3, and Data/Cloud Infrastructure. 3. **Geographic Reach**: The firm leverages Israel's tech ecosystem while maintaining a global presence, with offices in Tel Aviv, London, and New York, managing over $1.25 billion AUM. 4. **Portfolio and Returns**: Entrée has a robust portfolio with over 180 startups, including notable investments like monday.com and Stripe, achieving more than 27 exits/IPOs and backing at least 17 unicorns. 5. **Investment Style**: The firm’s strategy is characterized by operational support, market insights, and a strong global network, employing the "4Ts" framework—timing, technology, total addressable market, and team. ### Market Share and Industry Rankings Entrée Capital's strategic positioning is reflected in its market share and industry rankings, underscoring its influence in the venture capital landscape. Entrée Capital's data-driven approach, strong founder focus, and strategic investments position it as a formidable player in the venture capital market, consistently delivering impressive returns and fostering innovation across key technological sectors.Contact and Next Steps
Entrée Capital is a global venture capital firm with a presence in Tel Aviv, London, and New York. For entrepreneurs seeking investment, here is the detailed contact information:
Office Locations and Contact Details
- Headquarters: 14a Leonardo Da Vinci St, Floor 5, Tel Aviv-Yafo, Israel
- Phone Number: +972 9 7884784
- Website: www.entreecap.com
- General Contact Email: info@entreecapital.vc
Next Steps for Entrepreneurs
Entrepreneurs interested in pursuing investment with Entrée Capital should prepare by ensuring their startup aligns with the VC's focus. Consider the following steps:
- Research Entrée Capital's portfolio to confirm fit in terms of sector, stage, and check size.
- Prepare a concise, tailored pitch that highlights traction, scalability, and unique value propositions.
- Reach out via email or LinkedIn with a personalized message showing your understanding of Entrée Capital’s interests.
Preparation Tips
Effective VC outreach requires a strategic approach:
- Invest time in crafting personalized communications that reflect a deep understanding of both your business and the VC's focus.
- Utilize multiple channels, including LinkedIn and industry events, to increase visibility and engagement opportunities.
- Manage your outreach systematically using CRM tools to track communications and measure engagement success.
