Swish Ventures, an Israeli venture capital firm founded by former NBA player Omri Casspi, has closed a $250 million third fund. The firm said the fund attracted new backers including Sequoia Capital, one of Silicon Valley's most prominent venture firms, as well as US pension funds and university endowments.
Swish focuses on early-stage investing in three areas: cybersecurity, physical AI, and defense technology. With this new capital, the firm plans to write checks of roughly $20 million at the Seed and Series A stages, a relatively large size for early rounds, and then continue supporting its most promising portfolio companies in later funding rounds.
Who is behind Swish Ventures?
Omri Casspi, a former small forward who played for several NBA teams including the Sacramento Kings and Golden State Warriors, founded Swish Ventures after retiring from basketball. He has leveraged his network in both the tech and sports worlds to build a firm that bridges Israeli innovation with global capital.
Israel has long been a hub for cybersecurity and defense technology, with a deep pool of engineering talent often drawn from military intelligence units. Swish's focus on these sectors aligns with that ecosystem, and the firm's ability to attract marquee US investors like Sequoia underscores the continued global appetite for Israeli tech.
What the fund means for startups
Swish says it will back roughly 12 startups from this fund, averaging around $20 million per company, often as a co-lead with another investor. That structure allows Swish to take meaningful ownership stakes while sharing risk with other funds.
For early-stage founders, having a well-capitalized lead investor can be a signal of credibility. It also means Swish can provide follow-on capital in later rounds, which is often critical for startups that need multiple rounds of funding before reaching profitability or an exit.
What it means for investors
For everyday investors, this news is a reminder that venture capital remains a vibrant asset class, even as public markets experience volatility. However, most individuals cannot directly invest in a fund like Swish; it is typically available only to institutional investors or high-net-worth individuals who meet accredited investor criteria.
That said, the involvement of US pensions and universities is notable. These institutions allocate a small portion of their portfolios to alternative assets like venture capital, seeking higher returns over long time horizons. When they back a fund like Swish, it reflects a belief that early-stage tech companies in Israel can generate outsized returns.
For those who want exposure to similar themes without private market access, public markets offer options. Cybersecurity and defense tech are represented by a range of publicly traded companies, and physical AI—robotics and autonomous systems—is increasingly a focus for large tech firms. For example, Nvidia and AWS have announced plans for massive GPU expansions, which could support the broader AI ecosystem that startups like Swish's portfolio companies operate in.
Still, venture capital is inherently risky. Most startups fail, and even successful ones can take years to generate returns. The $20 million checks Swish writes are large for early-stage, but they come with the expectation that only a handful of the 12 companies will become breakout successes.
Broader context
The closing of Swish's fund comes at a time when venture funding has been uneven. After a boom in 2021, dealmaking slowed as interest rates rose, but there are signs of recovery in certain sectors, particularly AI and defense. Governments around the world are increasing spending on security, and the war in Ukraine has highlighted the importance of defense innovation.
Physical AI—a term for AI that interacts with the physical world, such as robots and autonomous vehicles—is also attracting attention. PlusAI, an autonomous trucking company, recently announced plans to go public via a SPAC merger, indicating investor appetite for such technologies.
Swish's strategy of writing large early checks and then doubling down on winners is not unique, but it is a deliberate approach. By focusing on a few sectors where it has deep expertise, the firm aims to add value beyond capital, helping startups navigate the challenges of scaling.
What to watch
Investors will be watching which companies Swish backs and whether they can achieve successful exits, either through acquisitions or public listings. The firm's track record with its previous funds will also be scrutinized, as will the performance of its portfolio in a competitive funding environment.
For now, the closing of this fund is a positive sign for the Israeli tech ecosystem and for the broader venture market. It shows that even in uncertain times, well-positioned funds with strong backers can raise substantial capital.
