In recent months, there has been growing panic over predictions that the US economy is heading into a recession.

We are already in a bear market and startup investors, it seems, are changing their stances and strategies with the prediction of dark times ahead.

The capital may still be there, but investors are wary due to the apparent volatility.

Some, however, feel confident enough to head in the opposite direction. Although recessions have followed most bear markets in most cases, this has not always been the case; even if this is what the near future holds for us, history shows that we have always been able to recover from it.

This assumption led Greenfield Partners to announce today the closing of $350 million in new investment funds.

The new capital from the NY-TLV-based venture capital fund is intended to invest in 15 early-stage startups and support its existing portfolio companies in later and long-term stages. The new money raised brings the fund’s total assets to over $500 million, and it looks like they’re ready to spend it.

“The technology market, both private and public, is constantly changing, and it’s difficult to predict where and when things will stabilize at this time,” says managing partner Shay Grinfeld. “Several important factors are contributing to this – rising inflation, rising interest rates, supply chain disruptions and the war in Ukraine. We know the market will be affected by how these factors While the waters may be choppy in the near term, we remain fundamentally optimistic about the secular tailwinds that are pushing technology innovation towards significant growth in the years ahead.

One of the fundamental principles of the fund’s strategy is to favor Israeli startups. Grinfeld, a longtime operator, entrepreneur and investor, believes his optimism is based on years of experience and a unique approach. “Our growth forecast is particularly evident in Israel, which has shown resilience and innovation time and time again. We continue to focus on identifying technologies that can create disruptions in major markets and that have strong fundamentals, healthy unit economics and efficient cash consumption.

The fund team performs in-depth analyzes of KPIs and processes and works closely with management teams to significantly improve growth and efficiency.

Yuda Doron, Managing Partner at Greenfield, adds: “We see where our portfolio companies need to be in a few years, so we work closely with them to develop their sales organizations, recruit executives, open international offices, improve KPIs, and develop scalable internal processes; this sets them up for long-term success. We have been active in the Israeli tech ecosystem for many years and we believe in it, especially today.

The fund primarily invests in outstanding early-stage Israeli technology companies that have demonstrated strong product-market fit, risk-free technology and attractive unit economics. “Throughout this period, we will continue to seek out these attractive opportunities while keeping an eye on market transformations and adapting accordingly,” exclaims Grinfeld.

Among his investments are unicorn companies such as VAST Data, BigPanda, Guardicore and others. The fund has a strong focus on enterprise software and invests in fintech with a preference for early-stage companies.

Grinfeld insists that to grow in times like these, a company must expand internationally, a process investors need to watch closely. “This is one of the main areas of focus for early stage companies. In these times of market volatility,” he adds, “we are also working closely with portfolio companies who need to raise short-term funds to ensure optimal cash management and sufficient runway to long term, so that they can emerge stronger. of this current situation.

While many investors wait to see how markets and potential exit valuations will develop over the coming weeks and months, Greenfield believes now is the time to do the opposite: “Given the long-term implications of the recent change in market multiples, we believe there is an opportunity to explore new investment opportunities at more attractive valuations than in recent years. We continue to invest actively throughout this period and place great emphasis on identifying situations that fit our core investment thesis of selecting market-leading companies with an attractive and healthy unit economy.

“In this time of market volatility,” he concludes, “we are grateful for our ability to continue to support entrepreneurs and promote innovation through our new funds.”