Red Dot Capital closes $320M fund to back early-growth Israeli tech

Venture capital fund Red Dot Capital Partners announced that it has completed raising its third flagship fund, securing total commitments of $320 million. The fund’s first closing took place in January 2024, and the final close now brings the fund to $320 million, exceeding its original target of $250 million. This brings Red Dot’s total assets under management (AUM) to $750 million.

The partners at Red Dot are Yoram Oron and Yaniv Stern (founding partners), Barak Salomon (managing partner), and Atad Peled and Danielle Ardon Baratz (partners).

Red Dot Capital Partners.

The new fund will continue to invest in Israeli technology companies in early growth stages, across all technology sectors except biotech, pharma, and medical devices. Red Dot typically engages with entrepreneurs from the Seed stage onward and leads Series A to C rounds in companies with annual revenues of $1–5 million, with initial investments ranging from $10 million to $20 million. The new fund has already invested in four companies: Finout, Stigg, Oligo, and Bria AI.

For the first time, the existing investor base has been joined by large Israeli institutional investors, including Harel, Mor, and Meitav, as well as investors from countries that do not have diplomatic relations with Israel.

Red Dot’s notable exits include: Global-e, which went public on Nasdaq in 2021 and is currently valued at around $6 billion; Armis, which was acquired by Insight Partners and Google’s investment arm for approximately $1.1 billion; Red Dot still holds a stake; Granulate, which was sold to Intel for $650 million; Paragon, which was acquired earlier this year by private equity firm AE for about $900 million; and Sealights, which was acquired by Tricentis.

Other well-known portfolio companies include Coralogix, Quantum Machines, Travelier, Ctera, Anecdotes, EverC, SupPlant, and Trigo.