Yoni Heilbronn, co-founder and managing partner of IL Ventures, believes that Israeli start-ups are entering a critical moment as global industries face mounting challenges in logistics, supply chains, and energy.
Heilbronn, who founded automotive cybersecurity pioneer Argus before its acquisition, launched IL Ventures during the COVID-19 pandemic, together with longtime partner Elad Frenkel.
The two have known each other for more than four decades and served together in Israel’s Unit 8200, where Heilbronn first heard the term “impossible is irrelevant,” something he took forward into his career.
Founded in 2021, IL Ventures focuses on disruptive technologies for legacy industries, investing in pre-seed and seed companies in the fields of AI, logistics, robotics, energy, smart manufacturing, and supply chain.
Israeli innovation at an inflection point
After over two years of war, Heilbronn believes Israel is entering a post-crisis boom.
With reservists returning to civilian life, he sees a surge of new entrepreneurs. “I see a lot of fire in their eyes, a lot of motivation and new ideas,” he told The Jerusalem Post.
He pointed to the unique pace of Israeli founders: “What an Israeli entrepreneur does in a year is much more than in other places. Necessity is the mother of all ingenuity.”
And that, he said, is where Israeli start-ups can shine.
Global shifts, local opportunities
The COVID pandemic five years ago exposed vulnerabilities in global supply chains. Subsequent crises, from the Russian-Ukrainian War to shipping disruptions caused by the Houthis in Yemen, have only compounded the challenges.
Many industrial players have responded by onshoring production, but higher labor costs in the West have created new pressures.
“Israeli start-ups can deliver solutions to these inefficiencies,” Heilbronn told the Post.
According to him, global investors are increasingly drawn to Israel’s “no-nonsense environment,” where start-ups must deliver technologies that solve billion-dollar problems. Gulf investors are also watching closely, with potential normalization with Saudi Arabia seen as a possible turning point.
“If it happens, it will open the floodgates,” he said.
The Israeli spirit
Meanwhile, Israeli defense technology, now stamped as “battle-proven,” is also drawing international attention.
But Heilbronn is cautious. “From an investor’s perspective, there’s a lot of hype,” he says.
Defense start-ups often face long development and sales cycles that don’t align with traditional venture capital timelines. “I’m not sure this is something suitable for venture capital funds, but for investors with significant stamina, it may be.”
For Heilbronn, the mission of IL Ventures is clear: Back Israeli innovation that addresses tangible global needs.
“The world has changed since World War II, it’s every man for himself,” he reflects. “But Israel has a lot to offer, far beyond cybersecurity. This is an interesting time to live in.”