“We made another investment the morning after the war with Iran began”
TLV Partners’ Shahar Tzafrir says Israeli startups are prepared, determined, and functioning without pause.
Like much of the country, Israeli high-tech was caught by surprise with the sudden escalation of war with Iran. But according to Shahar Tzafrir, Managing Partner at TLV Partners, one of Israel’s leading early-stage venture capital funds, this time the sector is facing the crisis without panic - unlike during the COVID-19 pandemic or following the October 7 attacks.
"Everything is still very fresh, we woke up to a major surprise before we even fully understood what was happening," said Tzafrir. "My first thought was that I had meetings scheduled with three startups, and I immediately decided we’d hold them all over Zoom. The entrepreneurs proved to me that since October 7, they simply don’t give up. I had no fear of significant damage to Israeli high-tech."
Tzafrir praised the determination of both entrepreneurs and the broader public. “The citizens of this country show the same grit as the British in World War II - everyone here is a Churchill. At the fund, we’re operating as usual. We invested in a new Seed-stage company earlier this week, and on Friday morning, we signed another deal, without any hesitation.”
Still, he notes that some challenges remain. “We have three entrepreneurs currently stuck abroad. There isn’t a full understanding globally of the magnitude of what’s happening here, but everyone in the ecosystem knows we’re not stopping for a moment. Each person contributes in their own way. We’re supporting our entrepreneurs with whatever they need.”
He added that Israeli startups are now well-accustomed to remote work, having already endured multiple crises. “Since COVID and October 7, everyone knows how to pivot to working from home at a moment’s notice. The companies are well-organized. I saw that several founders already had full contingency plans up and running by Friday night. Startups aren’t just competing with each other - they’re competing while under duress, and their customers must not feel any disruption.”
Tzafrir believes the crisis is paradoxically highlighting Israeli tech’s strengths. “There’s a sense that if Israel emerges strong from this conflict, then its high-tech sector, especially defense tech, even if not directly involved, will be viewed as part of that resilience. After October 7, I expected serious harm to the sector, but was surprised to see performance actually improve for many companies. So I woke up to this new war without fear.”
“There is no performance anxiety in Israeli high-tech,” he concluded. “There is no doubt in my mind - it will continue to function above and beyond.”
Like much of the country, Israeli high-tech was caught by surprise with the sudden escalation of war with Iran. But according to Shahar Tzafrir, Managing Partner at TLV Partners, one of Israel’s leading early-stage venture capital funds, this time the sector is facing the crisis without panic - unlike during the COVID-19 pandemic or following the October 7 attacks.
"Everything is still very fresh, we woke up to a major surprise before we even fully understood what was happening," said Tzafrir. "My first thought was that I had meetings scheduled with three startups, and I immediately decided we’d hold them all over Zoom. The entrepreneurs proved to me that since October 7, they simply don’t give up. I had no fear of significant damage to Israeli high-tech."
Tzafrir praised the determination of both entrepreneurs and the broader public. “The citizens of this country show the same grit as the British in World War II - everyone here is a Churchill. At the fund, we’re operating as usual. We invested in a new Seed-stage company earlier this week, and on Friday morning, we signed another deal, without any hesitation.”
Still, he notes that some challenges remain. “We have three entrepreneurs currently stuck abroad. There isn’t a full understanding globally of the magnitude of what’s happening here, but everyone in the ecosystem knows we’re not stopping for a moment. Each person contributes in their own way. We’re supporting our entrepreneurs with whatever they need.”
He added that Israeli startups are now well-accustomed to remote work, having already endured multiple crises. “Since COVID and October 7, everyone knows how to pivot to working from home at a moment’s notice. The companies are well-organized. I saw that several founders already had full contingency plans up and running by Friday night. Startups aren’t just competing with each other - they’re competing while under duress, and their customers must not feel any disruption.”
Tzafrir believes the crisis is paradoxically highlighting Israeli tech’s strengths. “There’s a sense that if Israel emerges strong from this conflict, then its high-tech sector, especially defense tech, even if not directly involved, will be viewed as part of that resilience. After October 7, I expected serious harm to the sector, but was surprised to see performance actually improve for many companies. So I woke up to this new war without fear.”
“There is no performance anxiety in Israeli high-tech,” he concluded. “There is no doubt in my mind - it will continue to function above and beyond.”
