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Venture capital landscape is shifting as Hanaco Ventures, a prominent player since 2017 managing close to \$2 billion in assets, winds down its fundraising activities. The firm’s founders are now charting new, specialized investment paths, signaling an evolution in Israel’s VC ecosystem.
Founded by Alon Lifshitz, Lior Prosor, and Pasha Romanovski, Hanaco Ventures built a strong reputation over eight years by backing notable companies such as Moovit (later acquired by Intel), American Well, DigitalOcean, and Guardz. Despite its successes, Hanaco is now halting new fundraising efforts and will cease making fresh investments, though it will continue managing its existing portfolio. This decision marks the end of an era but also sparks fresh beginnings for its founding partners.
Lior Prosor is set to join forces with the Arkin Group, collaborating with Nir Arkin to launch a new investment fund expected to start within the year. Meanwhile, Alon Lifshitz is focusing on a new venture, Aurelius Capital, alongside Tomer Yaakov. This new platform is targeting dual-use and defense technologies—advanced innovations that serve both civilian and military purposes. Aurelius Capital will operate globally, drawing on the expertise of former senior officials from the Israeli Defense Forces, intelligence agencies, and the U.S. defense sector, positioning itself at the forefront of security tech investments.
The transition is also marked by controversy, as Pasha Romanovski stepped down in 2024 following a fraud scandal at Vesttoo, a company where he served as a Hanaco-appointed board member. This episode adds a complex layer to Hanaco’s closing chapter but has not overshadowed the firm’s overall impact on Israeli tech and venture capital.
What Undercode Say:
Hanaco Ventures’ decision to cease fundraising and new investments reflects broader trends in the venture capital world, where mature funds often pivot or close as market conditions shift and founders pursue niche opportunities. The move by Hanaco’s founders to establish new, specialized funds signals a strategic recalibration toward sectors with high growth potential and geopolitical relevance—particularly security and dual-use technologies.
Aurelius Capital’s focus on defense and dual-use tech aligns with increasing global demand for advanced security solutions, driven by rising geopolitical tensions and rapid tech innovation. By leveraging partnerships with former defense and intelligence officials, Aurelius aims to blend deep domain knowledge with venture capital agility, a combination that could yield significant competitive advantages.
Similarly, Lior Prosor’s collaboration with the Arkin Group hints at a continued emphasis on diversified investments, likely benefiting from Arkin’s established network and resources. This partnership may also reflect a broader trend where venture capital firms consolidate expertise and capital to better navigate a more complex investment environment.
Hanaco’s portfolio highlights its knack for picking winners in fast-evolving industries—from mobility solutions like Moovit to cybersecurity firms such as Guardz. The closure of the fund, therefore, should not be seen as a retreat but as a natural evolution, allowing the founders to focus more sharply on sectors where they foresee sustained impact and returns.
The Vesttoo scandal, while damaging reputationally, underscores the risks inherent in venture capital, especially when board governance intersects with fast-moving startups. It serves as a cautionary tale about oversight but does not diminish Hanaco’s broader accomplishments.
Looking ahead, Hanaco’s
Fact Checker Results:
Hanaco Ventures was indeed founded in 2017 and manages about \$2 billion in assets. ✅
Lior
Pasha Romanovski resigned following the Vesttoo fraud scandal, a fact verified by multiple sources. ✅
📊 Prediction:
The pivot of Hanaco Ventures’ founders into specialized funds such as Aurelius Capital indicates a rising trend of venture capital targeting dual-use technologies with both civilian and defense applications. Given increasing geopolitical instability, investments in security tech are likely to surge, attracting significant government and private sector interest. This shift may spur innovation cycles in defense startups, increase cross-border partnerships, and set new standards for collaboration between venture capital and military/intelligence institutions. Hanaco’s legacy fund winding down could be seen as a strategic handoff to a new era of hyper-focused investment firms shaping the future of tech and security worldwide.
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Reported By: calcalistechcom_519daafe0e7c491f06b220d2
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