Merlin Ventures is a cybersecurity-focused venture capital firm operating between Tel Aviv and Tysons Corner, Virginia. Established in 2021 as the venture arm of Merlin Group, the firm specializes in backing Israeli cybersecurity startups, particularly those leveraging AI and targeting U.S. public-sector markets. In June 2025, Merlin Ventures announced the close of its oversubscribed inaugural fund, exceeding $75 million, aimed at accelerating the growth of early-stage cybersecurity companies.
Merlin Ventures targets early-stage Israeli cybersecurity startups, with a particular emphasis on companies developing AI-driven solutions. The firm seeks to invest in startups that are poised to address the evolving challenges in cybersecurity and are prepared to navigate the complex regulatory landscapes of U.S. government contracts.
The firm's inaugural fund, closed in June 2025, raised over $75 million, surpassing its initial target. This fund is dedicated to investing in seed-stage cybersecurity startups in Israel, providing them with the necessary resources to scale and penetrate the U.S. market. Merlin Ventures leverages its deep connections within the U.S. federal sector to facilitate this market entry.
Leadership
Merlin Ventures is led by Managing Partners Seth Spergel and Shay Michel, alongside David Phelps, CEO of the Merlin Group. The leadership team brings extensive experience in cybersecurity and venture capital, providing strategic guidance to portfolio companies. In June 2025, the firm announced the promotion of Almog Golod to Partner and Tav Spector-Levy to Operating Partner.
Investment Strategy
Merlin Ventures employs a hands-on investment approach, offering more than just capital. The firm provides startups with access to a robust network of U.S. Chief Information Security Officers (CISOs), strategic co-investment partnerships with prominent U.S. funds, and a structured program called Genesis. The Genesis program is designed to fast-track the go-to-market growth of portfolio companies by connecting them with sales, go-to-market operations, and human resources experts.
Notable Investments
Merlin Ventures has invested in several notable cybersecurity startups, including Talon Security and Dig Security, both of which were acquired by Palo Alto Networks.
Other investments include: InfoSec Global, acquired by KeyFactor, and Veriti, acquired by Check Point Software.
The firm has also made two new investments in partnership with Lightspeed Venture Partners and Norwest Venture Partners.
Notable Exits
Merlin Ventures has achieved successful exits with several of its portfolio companies:
