Key1 Capital

Earlier this week, we hosted our third CFO roundtable, featuring CyberArk's financial powerhouses: Josh Siegel, CFO, and Rami Milrod Senior Director, Finance and Corporate Controller. Attended by some of the incredible CFOs in our ecosystem, the night was a masterclass in scaling finance operations for high-growth companies. Some of the most powerful key takeaways included: ➡️ Be the CEO’s “Co-Pilot”: Cultivate a strong relationship with the CEO from the outset, be part of every strategic decision-making process, and prioritize company growth and sustainability, even if it means making sacrifices within your CFO office. ➡️ Master the boardroom: Strengthen your credibility with the board and executive management by skillfully managing meetings and setting strategic agendas. ➡️ Evolve your finance function: While accounting and reporting are crucial early on, mature companies need a robust team of SVPs, FP&A experts, and trusted advisors. ➡️ Organizational fit between the Senior finance team and the executives is critical: Involve the executive team in the hiring process and leverage your network to find candidates who align with your company's DNA. ➡️ Finops in Focus: Finops has become a core focus area in controlling expenses, both for the CFO and IT organization.   Thanks to all of you who joined us and contributed to the discussion and of course, a special thanks to Josh and Rami for sharing their incredible insights and experiences gained through building a financial powerhouse at CyberArk.💪 Until the next one!

Last week, we gathered the extended Key1 Capital team for a festive Rosh Hashanah dinner. In light of the challenging year we've faced nationally, one which seems to get more complex by the week, taking the time to reflect on the dedication of our team members, Key1 and Ace Capital Partners, was incredibly meaningful. From our team to our community: May this year bring safety, health, and abundance for all. We pray for the safe return of our hostages, the safety of our soldiers, and a peaceful year ahead. Shana Tova 🍎

Why did we invest in SuperPlay? Last week, we saw our first fund exit when SuperPlay announced their sale to Playtika, marking one of the top ten exits in the history of mobile gaming and creating one of the largest and fastest-growing global mobile gaming franchises.   In this piece Sarel E., our Managing Partner, dives into the factors behind our investment decision in late 2022 and what we believe Gilad Almog, Eyal Netzer, and Elad Drory's journey reveals about succeeding in the gaming industry, one ripe with both challenges and immense potential.  Give it a read ⬇️

We are super excited to share that SuperPlay, the leading mobile casual gaming company, recently announced its merger with Playtika. Key1 was fortunate to lead the latest funding round for Superplay in late 2022, and with that, we are officially marking our first exit since Key1’s inception in early 2022.    Success in the gaming sector requires a truly differentiated vision, a deeply talented team, and an outstanding product. SuperPlay had all and then some.    When we met Gilad Almog, Eyal Netzer, Elad Drory, and Amir Hanin, and got to look at Superplay up close, we recognized their potential to excel in this challenging yet rewarding industry. Their success is a testament to the hard work, innovation, and relentless execution of the entire Superplay team.    We are thrilled at this outcome and feel privileged to have been a part of Superplay's successful journey. Congratulations to the team and we look forward to Superplay’s continued growth and success in this new chapter! 🎉 For the full press release ➡️ https://lnkd.in/dzEs3EPK

Welcome Elad Baron to the Key1 team! As the Key1 fund grows and matures, so does our incredible team, and we’re excited about our newest addition. Below, Elad shares why he chose the investor path and his optimism about the Israeli high-tech landscape. Scroll through to get to know our newest team member 🤩 ➡️

"If any industry is built to handle extreme situations like war, it’s Israeli high-tech." - Amit Pilowsky In a recent CTech by Calcalist piece, top VC Partners including Amit, Rona Segev (TLV Partners), Kobi Samboursky (Glilot Capital Partners), and Michal Kissos Hertzog (Poalim Tech) share their takeaways on the challenges and opportunities facing Israeli entrepreneurs in these turbulent times. Some key points include: → Israeli high-tech shows remarkable resilience → Investor confidence remains strong despite (understandable) global caution → Cybersecurity and defense tech sectors have seen greatly increased activity As we approach the Calcalist כלכליסט Roadshow+ event, where promising Pre-seed to Series A startups will pitch to these industry leaders and more, these insights underscore the unique value proposition of Israeli entrepreneurs. 👉 Read the full article: https://lnkd.in/d-c2Pqd7 👉 Hebrew version: https://lnkd.in/dtjZ3Yp2 👉 Are you an early-stage founder ready to showcase your innovation? Apply now for Roadshow+: https://lnkd.in/dsj7hMhj #nomatterwhat

“Fake users” are nearly as prevalent online as authentic human users, with bots making up 47% of all internet traffic. Let that sink in… The threat from these bots and fake users is dire, spanning across sectors, countries, and industries, impacting national security, business integrity, and our trust in digital environments. In this piece, our Managing Partner, Danny Akerman dives deep, exploring: ➡️ The scale and scope of the bot epidemic across various industries ➡️ Generative AI's paradoxical role as both amplifier and potential solution ➡️ Actionable steps and critical information to combat this growing crisis ➡️ How companies like CHEQ, are utilizing cutting-edge technology to ensure the digital integrity of businesses A worthwhile read 👇 https://lnkd.in/dHSJBVpV

We at Key1 are thrilled to announce the establishment of Ace Capital Partners, our investment arm in partnership with Aerospace Spirit dedicated to supporting early-stage startups primarily in Israel in the Aerospace and Defense (ASD) sectors.    At Key1, we firmly believe the stage is set for a defense tech revolution. Our partnership with Major General (Ret.) Amikam Norkin, former Israeli Airforce Commander, and Brigadier General (Ret.) Shimon Tsentsiper in creating Ace enables us to apply the expertise, depth, and experience to deliver the right support and advance visionary founders in the space. Thank you to Harel Insurance & Finance for their continued partnership, robust financial backing, and unwavering commitment to bolstering Israel's position in this strategic industry. Read more on Ace's vision and thesis in the piece below ⬇️ #nomatterwhat

The Sphere in Las Vegas is a modern feat of engineering, a venue of an unparalleled blend of architecture and cutting-edge technology. But when U2 was set to play there, the biggest rock band in the world was stuck: they needed to find a data solution capable of keeping real-time graphics flowing into the highest-resolution LED screen in the world, and they needed it fast. Enter WEKA, the data storage platform that not only enabled 150,000 screens to display over 400 gigabytes of GPU-processed graphics every second, but did it so quickly that it allowed U2’s artists to iterate and perfect their visual experience.🤯 This is just a tiny taste of what is explored in the iconic ‘This Week in Startups’ podcast, where Jason Calacanis sits down with Antonio Gracias of Valor Equity Partners and Liran Zvibel of WEKA to dive deep into WEKA's revolutionary data storage platform for generative AI and ML. In it, they dive deep into the technology behind Weka, their impressive and expansive client roster including U2, Stability AI, and Midjourney, and how the company achieved product market fits so seamlessly. Worth a watch/listen ➡️ https://lnkd.in/dqTMAihw

Last week, we hosted our second roundtable event for CFOs from our ecosystem. The evening was a perfect blend of food, drink, and invaluable insights from our guests regarding the importance of M&A as an inorganic growth engine. A special thanks to Assaf Ben Ami, Co-Founder and CFO of ironSource, and Ofer Koren, CFO of Global-e, for sharing their extensive M&A experiences and lessons learned.  Some of our favorite takeaways include: 👉 When looking to make an acquisition, strategic rationale needs to be sound - it can complement your product offering, supercharge your company’s growth, or mitigate technology gaps while ensuring you have the right partners.   👉 The cultural fit between organizations is critical, so invest time in creating the right stricture pre-transaction to integrate the two organizations later on. 👉 Carefully evaluate whether the timing is right, as M&As demand substantial resources and will inevitably divert attention from other company priorities.   👉 While being cognizant of the potential synergistic value the two companies bring to the table, be disciplined about valuation and the overall economic rationale for the deal. 👉 Be open to various forms of strategic cooperation that are short of a full acquisition, but could yield significant value nonetheless and ultimately lead to a combination of the two companies.   Thank you to all who joined us, especially Assaf and Ofer who reminded us once again that building a large company requires vision, tremendously diligent work, and crystal clear goals.