Merlin Ventures Announces Oversubscribed $75 Million Inaugural Fund

Seed-Stage Cybersecurity Fund Fast-Tracks Market Access for Disruptive Tech Startups

TYSONS CORNER, Va. and TEL AVIV, Israel, June 4, 2025 – Merlin Ventures today announced the close of its oversubscribed inaugural fund, exceeding its $75 million target. With a strong emphasis on the growing Israeli tech ecosystem, this landmark fund accelerates market opportunities for high-growth startups with next-generation cybersecurity technologies and disruptive cyber solutions.

Raised amid challenging market conditions, this fund underscores the confidence in Merlin Ventures’ unique model, and proven ability to identify and nurture high-potential, seed-stage cybersecurity startups. Merlin Ventures Managing Partners Seth Spergel and Shay Michel, along with Merlin Group CEO David Phelps will manage the fund. Merlin Ventures is also announcing the promotion of two longtime team members that have been key to the fund’s success, Almog Golod to Partner and Tav Spector to Operating Partner. World-class business leaders invested in and support the fund, including Ofer Smadari, founder of Torq; Ofer Ben-Noon, founder of Talon Security (acquired by Palo Alto Networks); Dan Benjamin, founder of Dig Security (acquired by Palo Alto Networks) and Lior Suchard, world-famous mentalist.

“Raising our first dedicated fund, especially in today’s economic climate, is a testament to the incredible work our team has done over the last four years and the unique value proposition we offer to both founders and investors,” said Seth Spergel, Managing Partner, Merlin Ventures. “This new fund allows us to double down on our commitment to seed-stage companies and positions us as the go-to partner for the Israeli cybersecurity ecosystem and for U.S. investors eager to invest in the Israeli market.”

Since building out its team in Israel in January 2021, Merlin Ventures has successfully exited six investments made from previous vehicles, including Talon and Dig Security, both acquired by Palo Alto Networks, and more recently, InfoSec Global, acquired by Keyfactor, and Veriti, acquired by Check Point Software. The new fund has already made its first two investments, alongside leading U.S. investors Lightspeed Venture Partners and Norwest Venture Partners.

“The cyber startup ecosystem is incredibly strong right now, driven by demand around new threats and opportunities tied to Artificial Intelligence. We are witnessing a new generation of startups leveraging generative AI to build platforms at scale that were previously unimaginable, and capitalizing on this growth is the foundation of our fund,” said Shay Michel, Managing Partner, Merlin Ventures. “Our investment track record is a testament to our unique market access and deal flow inside the Israeli market, which positions the firm to identify and support the most promising founders. We are laser-focused on making this new fund the most successful seed-stage cyber fund in the Israeli market.”

The firm’s fundraising success and market differentiation are driven by three core pillars:

Robust Network: A community of hundreds of top Chief Information Security Officers (CISOs) and security executives across the U.S. who provide invaluable market insights, assist in due diligence, and accelerate the growth of portfolio companies.
Strategic Co-Investment Partnerships: A unique model of co-investing with prominent U.S. funds, positioning Merlin Ventures as a go-to partner for accessing premier seed-stage Israeli cybersecurity talent. This enables the firm to invest ahead of the curve while giving startups the support of two top funds—a huge competitive advantage.
U.S. Government Market Access: A strategic relationship with Merlin Group, a leading player in the U.S. federal market, provides portfolio companies with an accelerated pathway into the lucrative U.S. government market.

Merlin Ventures has built a top-tier infrastructure for market readiness, cybersecurity engineering expertise, and go-to-market strength, that is designed to withstand volatile and unpredictable market conditions. This enables startups to confidently penetrate and pursue the largest markets in the world.

“Merlin provides portfolio companies with a powerful network of cybersecurity investment, innovation, technical expertise, and go-to-market acceleration that leverages world-class security technologies and trusted relationships to facilitate and deliver trailblazing security solutions,” said David Phelps, Founder and CEO of Merlin Group. “Our unique model of co-investment allows us to build strong partnerships with some of the most recognized funds in the world. This new fund will amplify our ability to connect visionary entrepreneurs with the resources, network, and expertise they need to scale globally.”

The cybersecurity landscape is evolving at an extraordinary pace, largely driven by rapid advancements in AI. In an age where AI accelerates product development, building the right product, and getting it to market efficiently, is critical. In support of this, Merlin Ventures is launching its Genesis program, a structured initiative designed to fast-track the go-to-market growth of its portfolio companies. The Genesis program formalizes Merlin Ventures’ commitment to providing hands-on support by connecting startups with its extensive CISO network and a curated group of partners specializing in sales, go-to-market operations, and human resources. Participation allows portfolio companies to easily build products, providing the early guidance and resources founders need to quickly go from a PowerPoint concept to the first dollar of revenue.

Learn more about Merlin Ventures, their portfolio companies, and community which opens up access to the cybersecurity market, connecting CISOs and innovative startups together.

About Merlin Ventures
Merlin Ventures is the venture capital affiliate of Merlin Group, a network of companies with nearly 30 years of success bringing technologies to the U.S. Government market. Merlin Ventures rapidly scales visionary companies and introduces disruptive solutions designed to help enterprises address today’s most critical cybersecurity challenges. Its unique business model combines robust infrastructure and capital, technical advisory and engineering advisory, market readiness acceleration, and deep-rooted government and industry relationships that enable its portfolio to rapidly grow and scale. Learn more at merlin.vc.

Media Contact:
Katherine Benfield
ICR for Merlin Ventures
Merlinvc@icrinc.com