Due Diligence in Israel: A Family Office Playbook

Direct investment in Israeli startups requires a different playbook than investing in U.S. or European companies. Proximity, local references, and founder dynamics matter even more when you're building conviction for a concentrated portfolio.

Why Local Diligence Matters

• Reference checks that actually land: Israeli founders and operators are well connected; a good local partner can get you honest, off-the-record conversations.
• Market and regulatory context: Understanding Israeli regulation, defense ties, and export controls is essential for many deep tech and B2B companies.
• Founder quality and resilience: Israel's ecosystem rewards resilience and speed. Diligence should stress-test how founders operate under uncertainty.

A Practical Framework

1. Founder and Team

• Track record, previous exits, and how the team came together.
• Clarity on roles and decision-making under stress.

2. Product and Traction

• Real usage and revenue, not vanity metrics.
• Willingness to share key customers or design partners for verification.

3. Market and Competition

• Local and global competitors.
• Why this team wins in this market at this time.

4. Terms and Structure

• SAFE vs. equity, valuation, and key terms.
• Alignment with your own governance and reporting expectations.

How We Support LPs

We run local reference checks, facilitate founder and customer conversations, and help you interpret what you hear. Our job is to extend your team so you can move fast without sacrificing rigor.