YL Ventures was founded in 2007 by Yoav Leitersdorf and has narrowed over time into one of the most specialized seed-stage funds in venture capital: cybersecurity exclusively, sourced almost entirely from Israeli founding teams. The firm's real differentiator is its value-add network - more than 120 chief information security officers advise on deal vetting and market validation in exchange for a share of carried interest, giving YL Ventures what Leitersdorf calls first access to nearly every serious cybersecurity deal coming out of Israel. That model has produced a strong track record of exits including Twistlock, acquired by Palo Alto Networks for $410 million, and continued backing of category leaders like Orca Security and Cybereason, with Fund V closing at $400 million in 2022 - the largest seed fund ever raised specifically for cybersecurity - and total funds managed reaching $800 million.
Twistlock's 2019 acquisition by Palo Alto Networks for $410 million - Senior Partner Ofer Schreiber was Twistlock's original seed investor