After $32B Wiz sale, Index Ventures eyes the next generation of Israeli unicorns
Partner Juriaan Duizendstraal says recent multi-billion-dollar exits demonstrate what is now possible locally.
Juriaan Duizendstraal, a partner at the international venture capital fund Index Ventures, has been leading the fund's operations in Israel for four years. In an interview on the occasion of the investment in Wonderful, he explains why the fund has already invested significant sums in the company, and shares his perspective on exits and the local AI market.
Index currently manages assets worth approximately €11.7 billion. Of all the investments made by the fund, over 100 portfolio companies have reached a value of over $1 billion, 23 of which have exceeded the $10 billion mark, and 57 companies have reached an IPO. Index was also the first investor in Wiz, which is on the verge of being sold to Google for approximately $32 billion. According to estimates, the fund retains a holding of approximately 10% in the exit, which would yield roughly $3.2 billion upon deal closure.
"I am half Dutch, half French, grew up in Spain, and have lived in Israel for 17 years,” Duizendstraal told Calcalist. “I have a degree in finance and interdisciplinary studies. I started investing about a decade ago, first in an American fund under Liberty Media, where I was involved in many types of companies for four and a half years. Then, I was introduced to Sarit Firon, who joined Team8, and I joined their first fund. Four years ago, Index approached me; I really connected with their vision and moved to lead their activity in Israel."
How many investments have you led in Israel?
Duizendstraal: "Index has been investing in Israel for 20 years. I joined because the market is evolving, the portfolio is growing, and the market is becoming more competitive. You need someone 'on the ground' to secure the first deals. I have six partners who invest in Israel, and together we have completed 16 deals in three years, investing $300 million in new Israeli companies. This year alone, we have made seven new deals. Our investments range from $5 million to $100 million, with a strong emphasis on early-stage opportunities, mainly Seed and Series A rounds."
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Why did you lead two rounds in Wonderful?
Duizendstraal: "At Wonderful, we led both the $34 million Seed round and the $100 million Series A round, completed just a few months later. Completing a $34 million round followed by a $100 million round in such a short period indicates the company is extraordinary. This is due to their approach, speed, and international market entry. They expanded into several European countries with impressive results in both customers and staffing.
“Most companies start in the U.S., but Wonderful did the opposite: they began in Israel, Greece, and Belgium. Their field, primarily customer service, allowed them to create a significant opportunity, even larger than the English market. Their model is built from the ground up to enable rapid entry into multiple countries, starting with a general manager for each market and building a local team."
Where is Index heading in Israel?
Duizendstraal: "This year we will make seven investments in Israel, and our activity is growing. We are looking across sectors, but primarily in cyber, AI, and infrastructure. We also invest in other areas, such as Empathy, which differs from our typical investments."
What will exits look like?
Duizendstraal: "Today's entrepreneurs operate on a different level than those a decade ago. Some want to go further, and the billion-dollar exits we are seeing demonstrate that this is achievable from Israel. Entrepreneurs are now learning to build companies, retain customers, and recruit talent before starting new ventures using the knowledge gained from previous experiences. The market has become significantly more sophisticated over the years."
Where is Israel in terms of AI?
Duizendstraal: "Initially, Israel lagged slightly behind, but in the past year, it has caught up. We are seeing new AI companies such as Wonderful, Decart, and Irregular, growing at the same pace as abroad, much more promising than a year or two ago. Many entrepreneurs emerge from military units with AI and cyber experience rather than academia, giving them a strong foundation for innovation."
Competition in Israel: Local vs. foreign funds
Duizendstraal: "There are many opportunities in Israel, and all the major funds are active here. This abundance gives entrepreneurs the space to aim higher and dream bigger. Funds of our size seek to build significant companies, and when such capital is available, the entrepreneur’s goals shift from day one. Competition for top deals and talented founders drives up valuations, but this is healthy for the ecosystem."
