What Merlin Ventures does

Merlin Ventures is a US-based, Israeli-focused seed-stage venture capital firm that invests in early-stage cybersecurity companies and combines capital deployment with hands-on go-to-market acceleration services. Founded in 2020 as the venture capital affiliate of The Merlin Group — a network of companies with roughly 30 years of US government technology market experience — Merlin operates from a US headquarters in McLean, Virginia and a Tel Aviv office opened in January 2021 to source Israeli cybersecurity startups, including those founded by Unit 8200 alumni. The firm is managed by Managing Partners Shay Michel and Seth Spergel, with David Phelps as Merlin Group CEO, Partner Almog Golod, Operating Partner Tav Spector, and CISO-in-Residence Andrew Smeaton.

The firm's product surface is structured as an integrated platform rather than discrete software products. The core offering is the investment platform itself, supplemented by three formalized programs: the Genesis Program for sales and GTM acceleration, the CISO-in-Residence program providing strategic counsel and access to a community of 600+ CISOs and senior security practitioners, and the Public Sector Growth Program offering up to $5M in additional funding alongside FedRAMP certification acceleration through Constellation GovCloud, which received Provisional Authority to Operate from the US Government in December 2023. Merlin's business development team works directly with portfolio companies on positioning, market entry, and early sales motions, while CISOs provide market intelligence, peer referrals, and buyer introductions.

Merlin Ventures monetizes through conventional venture capital mechanics: equity investments in exchange for capital, with returns generated through portfolio exits. The firm has realized six exits from prior vehicles, including Talon Cyber Security ($625M acquisition by Palo Alto Networks in 2023), Dig Security ($400M acquisition by Palo Alto Networks in 2023), InfoSec Global (acquired by Keyfactor in 2025), Veriti (acquired by Check Point in 2025), Wickr (acquired by AWS), and Enso (acquired by Snyk). The firm's oversubscribed inaugural fund closed at over $75 million in June 2025, with co-investment partnerships established alongside Lightspeed Venture Partners and Norwest Venture Partners. Customers are dual-sided: Israeli cybersecurity startups seeking US commercial and federal market entry, and US CISOs and security practitioners seeking access to emerging security technologies and peer community engagement.

Name

Merlin Ventures

Legal name

Merlin Ventures

Website

http://www.merlin.vc

Company type

Private

Operating status

Operating

Headcount range

1–10 employees

Short description

Merlin Ventures is a US-based, Israeli-focused seed-stage venture capital firm that invests in early-stage cybersecurity startups and combines capital deployment with hands-on go-to-market acceleration, a 600+ CISO community network, and US federal market access via Constellation GovCloud FedRAMP acceleration.

Ownership category

akta.pro rank

Product category

Venture Capital

NAICS

Portfolio Management and Investment Advice (52394), Funds, Trusts, and Other Financial Vehicles (525), Miscellaneous Financial Investment Activities (523999)

SIC

Investment Advice (6282), Finance Services (6199)

akta.pro primary industry

Micro-VC & Angel Funds (FSANAAAI)

Keywords

• Venture capital
• Cybersecurity investing
• Seed-stage funding
• Go-to-market services
• Israeli tech investment

Headquarters

HQ city

Fairfax

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Investment Returns: Merlin Ventures generates returns through equity investments in early-stage cybersecurity companies, particularly Israeli startups, with successful exits including Talon Cyber Security ($625M acquisition by Palo Alto Networks), Dig Security ($400M acquisition), and InfoSec Global (acquired by Keyfactor).

Go-to-market motion1 record

Distribution channels1 record

Marketing channels4 records

Core offering

Merlin Ventures is an early-stage venture capital firm that invests in seed-stage cybersecurity companies, particularly Israeli startups, providing capital alongside hands-on go-to-market acceleration services. The firm combines equity investment with operational support including business development, positioning assistance, access to a 600+ CISO community, and US federal market entry infrastructure including FedRAMP certification acceleration through Constellation GovCloud.

Product overview

Merlin Ventures operates as a single, integrated venture capital platform rather than a multi-product software suite. The core offering is the investment and scaling platform itself, which combines early-stage capital deployment with go-to-market acceleration services. Supporting programs include the Genesis Program for formalized sales and GTM support, the CISO-in-Residence program for market intelligence and portfolio guidance, and the Public Sector Growth Program for federal market entry. The firm does not offer discrete software products but rather service-based programs designed to help cybersecurity startups reach meaningful traction and scale.

Differentiator

Problem solved

Functional benefit

Products and services

• Merlin Ventures Investment Platform Venture capital platform that provides seed-stage funding to cybersecurity startups, combining capital investment with go-to-market support, CISO community access, and operational guidance for portfolio companies. The integrated platform includes a dedicated go-to-market engine and direct access to the US federal market to help companies move from early momentum to real revenue.
• Public Sector Growth Program Turnkey program offering up to $5M in funding, FedRAMP certification acceleration, cybersecurity engineering support, and go-to-market infrastructure to help cybersecurity SaaS startups expand into the $200 billion U.S. Public Sector market. Available to portfolio companies seeking federal market entry.
• Genesis Program Structured go-to-market acceleration initiative connecting portfolio companies with Merlin's CISO network and curated partners specializing in sales, go-to-market operations, and human resources to fast-track growth from concept to first revenue.
• CISO-in-Residence Program Program placing experienced Chief Information Security Officers within the portfolio to provide strategic counsel, strengthen buyer alignment, and expand Merlin's community of security executives. Andrew Smeaton, appointed June 2024, brings over 25 years of security leadership experience including CISO roles at DataRobot, Saudi Investment Bank, and MIB Group.

Quantifiable outcome

• Nearly $1 billion in combined acquisition value from Talon and Dig exits within 4 years of fund inception
• +1 more outcomes

Segments2 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Four partnerships are on record, tiered core.

• NightDragoncoreGTM or Marketing Partner · 16 February 2022Strategic go-to-market partnership to deliver emerging cybersecurity innovation to US public sector customers. Merlin helps NightDragon portfolio companies access US government market through co-marketing, pre/post sales support, and business development. Includes potential for capital co-investment in respective portfolios.
• Sepio SystemscoreStrategic or Co-development Partner · 23 June 2021Expanded partnership to deploy Sepio's HAC-1 hardware access control solution to US federal and global commercial customers. Merlin issued $1 million purchase order for multiple projects. Sepio's zero trust hardware fingerprinting technology provides visibility into physical layer security gaps.
• CyolocoreStrategic or Co-development Partner · 15 June 2021Strategic partnership and investment to deliver Cyolo's Zero Trust Network Architecture (ZTNA 2.0) solution to US businesses and federal agencies. Partnership helps agencies comply with Biden Executive Order on Cybersecurity requiring Zero Trust Architecture implementation.
• Constellation GovCloud (Merlin Group)coreTechnology or Integration · 16 March 2021FedRAMP certification acceleration program that enables startups to achieve Authority to Operate (ATO) in fraction of time and cost compared to standard process. Reduces typical 2-year, $2M FedRAMP journey to faster path to market.

Scale indicators4 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• YL Ventures: Israeli-focused, seed-stage cybersecurity venture capital firm. Most direct comparable to Merlin Ventures in thesis (early-stage Israeli cyber), structure, and check size, and competes head-to-head for the same founder pool.
• Ballistic Ventures: Cybersecurity-focused venture firm founded by operators (including former CISOs from the Fortune 500). Direct peer as a specialist cyber fund with comparable seed/Series A check sizes and a community-led GTM approach.
• Team8: Israel-based cybersecurity builder-investor that creates and invests in cyber startups, often founded by Unit 8200 alumni. Comparable to Merlin in Israeli cyber sourcing and enterprise GTM focus.
• Cyberstarts: Seed-focused cybersecurity venture fund with deep Israeli roots and a CISO advisory network (the Cyber CISO Council). Closely comparable model to Merlin's seed-stage cyber thesis with community validation.
• NightDragon: Cybersecurity, safety, security, and privacy investment firm. Direct peer in cyber-specific investing and an actual GTM partner of Merlin Ventures, serving overlapping public-sector customer segments.
• Ten Eleven Ventures: Specialist venture capital firm focused exclusively on cybersecurity investing across stages. Comparable thesis, fund structure, and target founder profile to Merlin Ventures.
• Forgepoint Capital: Cybersecurity-focused venture capital firm investing across stages with a strong enterprise go-to-market orientation. Comparable to Merlin in cyber specialization and B2B GTM emphasis.
• Glilot Capital Partners: Israeli-based venture capital firm with a dedicated cybersecurity fund (Glilot Security). Competes with Merlin for Israeli cyber deals and has co-invested alongside Merlin (e.g., Jazz).

Broad incumbents

• Sequoia Capital: Large generalist venture capital firm with meaningful cybersecurity exposure across stages and geographies. Provides an incumbent benchmark on which Merlin must outperform in cyber-specific deal flow and GTM support.
• Lightspeed Venture Partners: Large multi-stage venture firm with a strong enterprise and security practice. Co-investor and strategic partner of Merlin Ventures; relevant as both a peer (for larger cyber rounds) and a distribution channel for Merlin portfolio companies.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/merlinvc
• Xx.com/merlin_cyber

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments26 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Merlin Ventures