Generalist · VC Firm

Red Dot Capital Partners

Tel Aviv early-growth firm that LED Quantum Machines' $50M Series B in 2021 and re-upped in the PSG-led $170M Series C in 2025; its single quantum bet, held through a $280M-funded category leader.

Active Tel Aviv, IsraelFounded 2016

Investment thesis

Early-growth specialist founded in 2016 by Yoram Oron and Yaniv Stern: leads late Series A to Series C rounds in Israeli companies with $1-5M revenue, $10-20M first checks for 10-20% stakes, board seats taken systematically.

Three flagship funds (Fund I $151M, 2016; Fund II $215M, 2020; Fund III $320M, closed July 2025) plus a follow-on vehicle; $750M AUM. Anchored by Temasek with operating LPs across Singapore, Japan and East Asia.

The Asia bridge is structural, not marketing: Fund II was explicitly raised to push Israeli portfolio companies into Southeast Asia and Japan, and LPs co-invest and open commercial doors.

Quantum exposure runs through one company, with real conviction: Red Dot led Quantum Machines' $50M Series B (Sep 2021, board seat) and re-invested in the $170M Series C (Feb 2025), backing the de facto quantum-control standard now serving most quantum computer builders.

Anti-thesis

The patterns that trigger a fast no with this fund.

  1. Single-name quantum exposure: Quantum Machines is the only quantum position in a portfolio dominated by enterprise software, cyber and fintech; no second quantum or PQC deal in five years, so a new quantum pitch fights the entire pattern
  2. Revenue bar excludes most quantum startups: the firm's stated entry point is $1-5M in annual revenue with early product-market fit, a threshold few quantum hardware companies meet before Series B
  3. Quantum conviction is concentrated in one partner: Yaniv Stern carries the Quantum Machines relationship and board seat; there is no published quantum team or thesis beyond that deal
  4. Israel-first mandate: the funds invest in Israeli (and recently some European) companies; non-Israeli quantum founders are structurally out of scope

Notable quantum portfolio

Full portfolio
Quantum Machines

Frequent co-investors