How Deep33 Started ?
Deep33 launched in January 2026 from stealth with a $100 million first close and is targeting $150 million by Q1 2026. But the story actually starts before that.
Lior Prosor (former Hanaco Ventures General Partner) and Michael Broukhim (serial entrepreneur with early stakes in SpaceX, Stripe, Groq, and Hut8) spent months researching where the AI supercycle would actually break down. They identified a critical gap: everyone’s investing in AI software, but nobody’s solving the physical infrastructure bottlenecks. Lior Susan (founder of Eclipse Ventures) joined as chairman. The thesis was born: “The AI supercycle can’t scale without quantum, energy, and compute infrastructure.” Deep33 became the answer.
Competitive Advantage MOAT (Unique Strengths)-
• U.S.-Israel Military-Grade Talent: Col. (Res.) Joab Rosenberg (former IDF Talpiot program commander, quantum physicist from Weizmann Institute) leads Quantum. Maj. (Res.) Yael Barsheshet leads AI Infrastructure. This isn’t typical VC-this is government-level technical expertise embedded in investment decisions.
• Geopolitical Timing: Operating at the exact moment the U.S. government is allocating massive budgets for domestic AI infrastructure and allied corridor development. Deep33 is the bridge between Israeli engineering and U.S. national resilience.
• Infrastructure Corridor Access: Offices in Tel Aviv, New York, and Los Angeles. Direct relationships with U.S. government procurement, grant funding, and military procurement processes. This is the hardest thing to build-and Deep33 has it pre-built.
• Portfolio Companies Can Skip Traditional Channels: Instead of cold-calling the Department of Defense or bidding on government contracts, Deep33’s portfolio companies get white-glove introduction to decision-makers, grant funding pathways, and industrial-scale adoption routes.
• First-Mover in the Niche: No other VC specifically focuses on U.S.-Israel allied deep tech infrastructure. Deep33 owns this category.
How Deep33 Makes Money ?
Deep33 operates the standard VC model with a twist:
Management Fees: 2% of $150 million = $3 million annually. This covers operations, team, and overhead.
Carried Interest (Carry): 20% of investment gains. When portfolio companies exit (acquisition or IPO), Deep33 takes 20% of profits above the initial investment. Example: Invest $5 million in a quantum company that sells for $500 million. That’s a $495 million profit. Deep33 makes $99 million in carry.
The Government Advantage: U.S. government contracts and grants flow through portfolio companies. As advisor and investor, Deep33 takes advisory fees (1-2% of government contract value) plus equity upside when those companies scale.
Market Share of Deep33-
Deep33 is brand new, so traditional “market share” doesn’t apply yet. But here’s what matters:
• Deep Tech VC Funding Pool: Global deep tech venture funding was approximately $45-50 billion in 2025. Deep33’s $150 million positions them as a micro-specialized player, not a giant. But in the “U.S.-Israel allied infrastructure corridor” specifically? They’re the only player. That’s 100% of their defined market.
• Portfolio Concentration: Five investments already (Quamcore, CyberRidge, Particle Labs, plus two stealth companies). The fund will make 15-20 total investments. With $150 million, average check size is $7.5 million per company. They’re neither tiny checks nor massive ones-exactly right for pre-commercial deep tech.
• Government-Backed Market Size: The addressable market is actually gigantic-U.S. government AI infrastructure spending alone could hit $500 billion over the next 5 years. Deep33 positioned themselves to capture a meaningful slice by being the closest bridge between Israeli innovators and U.S. procurement.
Deep33 isn’t competing in a crowded market. They created a new category: “government-enabled deep tech infrastructure investing.” That’s a defensible position with zero competitors right now.
Hi Friends, This is Swapnil, I am a content writer at startupsunion.com