40RTY Fund

What 40RTY Fund does

40RTY Fund is a privately held early-stage venture capital firm headquartered at 4 Marmurek st., Tel Aviv, Israel, that invests in Israeli technology startups. The fund is structurally anchored by approximately thirteen Israeli unicorn founders — including co-founders and senior leaders of Wix, CyberArk, WalkMe, Kaltura, Payoneer, Mellanox (acquired by NVIDIA), and Wonga — who invested the fund's initial capital and serve as LPs with formal roles in deal sourcing and due diligence. The fund concentrates its thesis in two investment domains: Vertical AI applications (industry-specific AI products) and Security & Resilience (AI-enabled defense, security, and critical infrastructure solutions).

The fund's general partners — Eyal Ben Yaakov, Inbar Haham, Itay Gil Asulin, and Roy Saar — bring prior investment track records from Mangrove Capital Partners, INcapital Ventures, and EY Israel, with Roy Saar notably having been the first investor in Wix, WalkMe, and PeaQ through to their IPOs. The portfolio disclosed to date includes four AI-native companies: Dazl (AI app builder introducing 'Vibe Coding' for production-ready applications), Playo (generative 3D playable worlds from text prompts), Bazak (AI agent platform for deployment across ChatGPT, Claude, and websites), and Honey Labs (AI operating system for consumer market research). 40RTY deploys equity capital through direct seed and early-stage funding rounds, with a confirmed $10M lead investment in Dazl's September 2025 seed round and Wix as a co-investor.

Revenue generation follows the standard venture capital model: management fees on committed capital combined with carried interest from portfolio company exits. No fund size, AUM, fee schedule, or fund vintage is publicly disclosed. The fund's stated competitive positioning rests on its unicorn-founder LP base, AI-powered due diligence tooling, and the GPs' firsthand operating experience building Israeli tech companies from inception through IPO.

Name

40RTY Fund

Legal name

40RTY Fund

Website

https://40rty.vc

Company type

Private

Operating status

Operating

Short description

40RTY Fund is an Israel-based early-stage venture capital firm anchored by unicorn founders as LPs, investing in vertical AI applications and AI-enabled security and resilience startups. Its portfolio spans AI-native companies in app building, 3D generation, agent platforms, and market research.

Ownership category

akta.pro rank

Product category

Venture Capital

NAICS

Funds, Trusts, and Other Financial Vehicles (525), Other Investment Pools and Funds (5259)

SIC

Investment Advice (6282)

akta.pro primary industry

Venture Capital Fundraising Placement (FSAEALAC)

Keywords

• Early-stage venture capital
• AI startup investing
• Vertical AI applications
• Security and resilience investing
• Israeli tech ventures

Headquarters

HQ city

Tel Aviv

HQ country

Israel

HQ region

Middle East

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

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

Revenue model

1. Fund Management / Investment Returns: As a venture capital fund, 40RTY generates returns through equity investments in early-stage Israeli tech companies, realizing gains through exits (acquisitions, IPOs) of portfolio companies.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels1 record

Core offering

40RTY Fund is a venture capital firm that invests equity capital into early-stage Israeli technology companies, primarily in the domains of vertical AI applications and AI-enabled security and resilience solutions. The fund manages capital contributed by a select group of Israeli unicorn founders as Limited Partners and deploys it through seed and early-stage funding rounds into portfolio companies such as Dazl, Playo, Bazak, and Honey Labs.

Product overview

40RTY Fund is a founder-centric venture capital firm anchored by Israeli unicorn founders, investing in early-stage Israeli tech companies. The fund's portfolio companies include four AI-powered products: Dazl (AI app builder for production-ready applications via Vibe Coding), Playo (AI platform for generating playable 3D worlds from text prompts), Bazak (AI agent platform for deploying across ChatGPT, Claude, and websites), and Honey Labs (AI operating system for consumer market research). Investment focus areas include Vertical AI applications and Security & Resilience solutions.

Differentiator

Problem solved

Functional benefit

Products and services

• Early-stage venture capital investment in Israeli AI startups Equity capital deployment into early-stage Israeli technology companies building vertical AI applications and AI-enabled security and resilience solutions, provided to founders through seed and early-stage funding rounds in exchange for negotiated equity stakes.

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability5 records

Scale indicators4 records

Recent moves5 records

Expansion highlights4 records

Broad incumbents

• Sequoia Capital: Global tier-1 venture firm with an active Israel presence investing across stages and sectors including AI. Comparable as a major allocator to Israeli tech and AI, but operates at much larger scale and broader thesis than 40RTY.
• Pitango Venture Capital: Israel's largest and longest-running venture capital firm, investing across stages from seed to growth. Comparable as a major Israeli VC active in AI and enterprise tech, though with broader sector coverage and larger fund sizes than 40RTY.
• JVP (Jerusalem Venture Partners): Established Israeli VC with deep portfolio in cybersecurity, enterprise software, and AI. Comparable as a long-standing Israeli fund with thematic overlap to 40RTY's Security & Resilience thesis, though operating at much broader stage and sector scope.

Direct peers

• Aleph VC: Israeli early-stage venture capital firm investing across enterprise tech, fintech, and AI. Comparable as a leading Israel-focused seed/Series A fund targeting ambitious tech founders with strong brand recognition in the local ecosystem.
• Team8: Israeli VC focused on cybersecurity, AI, and enterprise infrastructure. Comparable as an Israel-based early-stage fund with a sharpened vertical thesis (cyber/AI) and deep founder support model, similar to 40RTY's Security & Resilience focus.
• Glilot Capital Partners: Israeli early-stage VC with dedicated cybersecurity and AI-focused funds. Comparable given its Israeli base, security thesis overlap, and seed-stage orientation toward technical founders.
• Mangrove Capital Partners: Luxembourg-based VC where 40RTY GPs Roy Saar and Itay Gil Asulin previously led the Israeli investment team. Highly comparable given shared investment DNA, Israeli tech focus, and track record backing companies like Wix, WalkMe, and TailorBrands from seed to IPO.
• StageOne Ventures: Israeli seed and early-stage VC focused on enterprise tech, AI, and deep tech founders. Comparable given its Israeli base, seed-stage orientation, and similar emphasis on backing technical founders from inception.
• TLV Partners: Israeli early-stage VC partnering with technical founders building category-leading companies. Comparable given its Israeli focus, seed/Series A stage, and thesis-driven approach to enterprise and consumer tech.
• OurCrowd: Israeli venture platform investing across AI, deep tech, cybersecurity, and digital health. Comparable given its Israeli base and growing emphasis on AI-focused early-stage opportunities, though it also offers a broader crowdfunding-style platform.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/40rty-fund

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Funding overview

Funding rounds

Investors

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

M&A

Investments1 record

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

Frequently asked questions about 40RTY Fund