The short answer: most Israeli startups raise in this order: an optional Innovation Authority Tnufa grant to reach a prototype, a pre-seed round of about $1.1M to $1.75M (2025 figures), usually on a post-money SAFE, then a seed round 6 to 12 months later on proof that customers pay and come back. Innovation Authority Startup Fund grants can add non-dilutive money to qualifying pre-seed and seed rounds, and a Delaware parent becomes relevant when US funds join. This page links to our detailed guide for each step.
The path at a glance
| Stage | What it funds | Typical instrument | Guide |
|---|---|---|---|
| Ideation | Proof of concept or prototype | Tnufa grant (up to 80% of budget, max NIS 200K) | IIA grants |
| Pre-seed | Team, first product, first customers | Post-money SAFE; median cap about $6.8M in 2025 | Pre-seed guide |
| Seed | Repeatable sales and the Series A milestone | Priced round or SAFE; IIA Seed track can add up to 50% | Seed guide |
| US investors | Access to US funds | Delaware parent via a flip | Delaware flip guide |
All guides
- How to raise a pre-seed round in IsraelRound sizes, SAFE caps, who leads, building the investor list and running the process.
- How to raise a seed round in IsraelWhat to prove after pre-seed, what seed investors check, sizing the round.
- What is a SAFE and how does it work in Israel?Cap, discount, Israel Tax Authority guidance and stacked-SAFE dilution.
- Israel Innovation Authority grants for early-stage startupsTnufa, Pre-Seed and Seed tracks, incubators, royalties and IP rules.
- Raising from US investors: the Delaware flipWhy US funds ask for it, the Israeli tax ruling, grants and QSBS.
- What investors look for before a seed checkFounder-market fit, evidence of demand and a credible wedge.
- Warm investor paths that convertWhy trusted referrals convert and when direct email works.
- Reading the Israeli VC mapWho is active by stage and sector.
- How LPs think, and why it matters to foundersFund size, cycles and ownership targets behind your investor.
How we work with founders
Velo Labs works with founders preparing to raise: deciding whether to raise now, sharpening the story, mapping the investors who are actually writing checks at your stage and sector, and running the process. We tell founders honestly when they are not ready yet, and no one can guarantee a round. If you are planning a raise in the next few months, see how the fundraise advisory works.