Surround Ventures completes first closing of second fund

Venture capital fund Surround Ventures, which is led by Jared Kash, Yaron Kniajer and Haim Zilbershats, has completed a first closing of its second fund, which is planned to reach at least $50 million. The fund will invest in deep tech, with an emphasis on Israeli companies or companies with Israeli entrepreneurs with specializations in areas like defense tech, biotech, quantum computing, and AI for energy and infrastructures.

The fund’s investors are mainly successful Israeli tech entrepreneurs and private investors from the US, Europe and Australia, such as Hollywood producer Lawrence Bender. The fund’s advisory committee includes former Weizmann Institute President Prof. Daniel Zajfman and former Intel Israel CEO Yaniv Garty.

Prior to founding the first fund, Kniajer served as a senior executive at the Rhodium Fund and as a director in startup and industrial companies in diverse sectors. Kash began his career as an entrepreneur in the field of media products, and among other things founded a Tinder-like application for the Jewish market called JSwipe, which was acquired by the company that also owns the popular website JDate; and Beard Club, a brand of men’s grooming products. After serving as a partner in the Big Block Fund in the media sector, he founded the Surround Fund.

In addition, Kash is a TV and film producer and director. His father is Peter Kash, who invested in biomed companies in Israel and has also written several successful management books in Israel, including “The CEO and the Revolving Door.” Kash Sr. helps the fund select and promote companies in the biomed field.

Haim Zilbershats, the third partner in the fund, is the cofounder of the IDF Special Operations (Mem-Mem) Alumni Association and the head of the association’s entrepreneurship and business club. He cofounded mapping company Atly and set up the Ministry of Education’s remote learning system.

Zilbershats says, “We operate at the intersection of the two primary sources of deep tech innovation in Israel, the army and academia, and are fortunate to build close ties with both.”

Kniajer adds, “We established our first fund during the Covid period. Our intention was to close a $35 million fund, but one of the companies we invested in, Imgn Media, had already exited during the fundraising process for Len Blavatnik’s company.

“We invested through the first fund in companies such as QuamCore, which is developing a tiny and powerful quantum computer, which recently raised $26 million; and in Xtend, a defense robot and drone company that recently announced a merger with JFB Construction, which gives it an estimated valuation of $1.5 billion.” XED, which produces low-calorie drinks, and Solvo, which operates in cyberspace, also made exits for undisclosed amounts.

“The future is in companies with very deep science”

Surround has already begun investing from its second fund, for example in a company called Cellergy, which operates in the field of mitochondrial transplantation, founded by the founding team of Emendo Biotherapeutics, which was acquired for an estimated $250 million by Japanese company AnGes. The company is about to enter human clinical trials.

Kash says, “This is essentially a dual-purpose company, because mitochondria can both treat diseases and extend life, and also improve the performance of soldiers on the battlefield.”

In the energy sector, the fund has invested in Terrawave, which has developed a new drilling method to search for geothermal energy sources.

Surround won the Israel Innovation Authority’s program for investing in companies in the deep-tech sector, which offers a grant of up to 12.5% of the fund size without a share of the fund’s profits, for venture capital funds that invest in promising Israeli technologies.

Kniajer says, “We are seeing a new generation of founders coming of age during the war, alongside the entry of investors who no longer want to just make money in Israel, but to use Israeli technology to positively impact the world. This meets the desire of entrepreneurs, for example, Aviv Shapira from Xtend, in which we invested in the first round, who sold the Replay company in the sports sector, and today is interested in operating in the defense sector, because of the desire to benefit Israel, of course alongside the desire to create a huge company.”

Kash adds: “We believe that the future lies in companies with very deep science. Therefore, when we chose the investment path, and began to examine companies in the energy and quantum computing sectors, we decided not to limit ourselves. Tomorrow, something absolutely new may come from the Weizmann Institute or the IDF, which will open up a completely new field, and we want to be sure that we do not miss it. Our choice of companies rests the question of whether we have connections that can benefit them.”

Published by Globes, Israel business news – en.globes.co.il – on May 4, 2026.

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