The short answer: Israeli angels are a large part of pre-seed, and most of them join rounds rather than lead: in Fusion's 2025 survey, as reported by VC Cafe, 64% of angels only joined existing rounds and 69% invested only through SAFEs. They expect a working product and, increasingly, first sales. You find them through people who know them, through the angel clubs backed by the Israel Innovation Authority, and through your lead investor. Before you raise from many individuals, check the securities rule that limits offers to non-qualified investors, and tell Israeli angels about the Angels Law tax credit, which runs until the end of 2026.
Tax and securities points below are general information. Confirm the details for your round with a lawyer and a tax advisor.
What Israeli angels expect in 2026
| Signal | 2025 data | Source |
|---|---|---|
| Instrument | 69% of angels invest only through SAFEs | Fusion survey, via VC Cafe |
| Lead or follow | 64% of angels only join existing rounds | Fusion survey, via VC Cafe |
| Product | 91% expect a working product | Fusion survey, via CTech |
| Traction | Over 60% expect initial sales, even at pre-seed | Fusion survey, via CTech |
| Team | Over 80% of VCs and angels expect founders, especially the CEO, to be full-time | Fusion |
| Solo founders | 48% of angels made at least one solo-founder investment | Fusion survey, via CTech |
| Deal size | 42% of angel deals in 2025 were in the $100K to $250K range, up from 27% in 2024 | CTech |
The pattern behind the numbers: fewer angels writing larger checks, more of them investing actively in many companies, and higher expectations of evidence than a few years ago. Angels are also noticeably more open to solo founders than funds are, which makes them a natural first stop for a strong solo founder.
Where to find Israeli angels
- Your lead investor.Pre-seed funds often bring angels they co-invest with. Ask your lead who they want in the round.
- Founders and operators you know.Many active Israeli angels are former founders and senior operators. A founder they backed is the best introduction.
- Innovation Authority angel clubs.In 2024 the Israel Innovation Authority selected eight angel clubs, each receiving an operating grant for three years, to help private investors back Israeli pre-seed startups, with an emphasis on deep tech; a call for more club franchisees opened in 2026. Some clubs accept applications from founders directly, for example Eretz Angels (impact and deep tech in the periphery) and Hasoub Angels (founders from Arab society).
- Alumni and community networks,such as 8200 Angels, the investment vehicle of the 8200 Alumni Association, which invests with accredited investors.
- Platforms.Check each platform's current focus before applying: OurCrowd has said most of its future investment will go to later-stage companies.
How to approach an angel
- Know why this person. Their background, past investments and what they can add beyond money. Angels invest in founders they can help.
- Get introduced by someone they trust, with a short forwardable note: what you do, the traction, the round, and why them.
- Lead with the lead. Most angels move faster once a lead investor has committed. Say who is leading, or how close you are.
- Make the decision easy. Clear terms (usually a SAFE with a cap), a minimum check, a closing date, and a one-pager they can forward to co-investors.
- Treat angels as long-term partners. Send short regular updates. Angels who feel informed follow on and introduce others.
The Angels Law tax credit
Israel encourages angel investment through the Law for the Encouragement of Knowledge-Intensive Industry (Temporary Order), 2023, widely known as the Angels Law. It replaced an earlier version that expired after 2019. As summarised by law firms, it gives eligible investors a tax credit equal to the investment multiplied by the capital gains tax rate, up to NIS 4M per investor per company, with a minimum holding period of three years. The investment can be made in shares, options or SAFEs. The company must meet conditions including being a private Israeli company with limited prior revenue and substantial R&D spending. The temporary order applies to investments made by 31 December 2026; check whether it is extended before relying on it for a 2027 round.
Raising from many angels: the securities rules
- The 35-investor limit.Under Israeli securities law, offering securities to more than 35 non-qualified investors within 12 months is a public offering that requires a prospectus. Qualified investors do not count toward the 35, and offers made by people marketing your round count as your offers.
- Qualified investors.Individuals qualify by meeting financial thresholds on liquid assets or income, which are indexed over time. The company must actually verify the status; a self-declaration alone is not enough.
- Syndicates and SPVs.Some angel groups invest through a single vehicle. That simplifies your cap table, and the vehicle has its own rules on how it raises from its members.
- Crowdfundingthrough a licensed offering coordinator is a separate legal route for raising smaller amounts from the public.
Keep a simple list of everyone you offered the round to, mark who is qualified, and involve your lawyer before sending terms widely.
Sources
- Fusion, The State of Israeli Pre-Seed in 2025 (March 2026)
- VC Cafe, The State of Israeli Pre-Seed in 2025: What the Data Says (March 2026)
- CTech, Israeli pre-seed survey coverage (March 2026)
- Israel Innovation Authority, Winners to establish angel clubs (June 2024)
- Israel Innovation Authority, Angel clubs franchisees call (2026)
- Barnea Jaffa Lande, The Angels Law promotes investments in Israeli high-tech startups (March 2025)
- Gornitzky, New tax benefits for the Israeli hi-tech industry (August 2023)
- Barnea Jaffa Lande, ISA findings on offerings without a prospectus (April 2025)
- CTech, OurCrowd strategy (August 2026)