Merlin Ventures Launches $75M Fund to Supercharge Israeli Cybersecurity Startups
With six exits and a new AI-focused growth program, the Israeli-American VC firm doubles down on early-stage cyber innovation and U.S. market access
Photo credit: Yonatan Michel
Israeli-American venture capital firm Merlin Ventures has announced the close of its $75 million second fund, aimed at seed and early growth investments in Israeli cybersecurity startups. The fund will be managed by Shay Michel and Seth Spergel, alongside David Phelps, CEO of the Merlin Group.
The fund is designed to accelerate go-to-market timelines for promising startups, particularly those building AI-driven security platforms. Merlin has already made two investments from the fund, in collaboration with top-tier U.S. firms Lightspeed Venture Partners and Norwest Venture Partners.
Reflecting internal growth, Merlin also promoted Almog Golod to Partner and Tav Spector Levi to Operating Partner.
“Raising our first dedicated fund in today’s environment speaks to the unique value we offer founders and investors,” said Spergel. Michel added, “We’re reimagining the VC model. Startups today need more than capital—they need infrastructure, deep networks, and U.S. access from day one.”
Merlin Ventures' strategy rests on three pillars: a robust U.S. network of CISOs and cyber experts to guide and support startups; a co-investment model with leading U.S. VCs to provide dual-layered support; an direct access to the U.S. enterprise and government markets via the Merlin Group.
Since launching its Israeli office in 2021, Merlin has seen six successful exits, including Talon Security, Dig Security, InfoSec Global, and Veriti—all acquired by major players like Palo Alto Networks and Check Point.
The firm also launched Genesis, a new accelerator program to help founders go from concept to first revenue faster. The initiative offers access to sales, GTM, and HR experts, as well as Merlin’s CISO network, aiming to turn early-stage cyber ideas into scalable companies in record time.
The fund’s backers include industry leaders like Ofer Smadari (Torq), Ofer Ben-Noon (Talon), Dan Benjamin (Dig Security), and entrepreneur Lior Suchard.
“Our goal is to fuel the next wave of Israeli cyber innovation,” said Phelps. “By combining capital, expertise, and strategic partnerships, we help founders deliver real-world security solutions that meet urgent global demand.”