After leading dozens of investments, primarily in the cybersecurity space that have so far generated 22 exits with a combined value of approximately $2.5 billion, Yaron Elad and Elik Etzion are embarking on a new path. Together with their US-based partner Gurinder Sidhu, they are launching AlphaDrive, a $100 million fund focusing on cybersecurity and AI, operating under a unique investment model.

Leumi Partners, the investments arm of Bank Leumi, has joined the fund as an anchor investor, alongside additional investors including "Aurum" the Kahn family office, cybersecurity entrepreneurs from Israel and the U.S., venture capital fund managers, and other investors from the U.S. and Europe.

Yaron Elad, a seasoned venture capital investor and former CEO of Elron Ventures, and Elik Etzion, a cybersecurity and AI expert and former deputy head of the cyber division of Unit 8200 and former CISO of Bank Hapoalim, stepped down from the management of Elron Ventures in 2025, after leading it to top-decile performance in Cyber investments.

Gurinder Sidhu is a seasoned investment banker who until recently led the cybersecurity and infrastructure software sector at UBS, the world's largest wealth management bank. In his role, Sidhu led M&A and financing transactions for leading cybersecurity companies including CrowdStrike, CyberArk, SentinelOne, Barracuda, Sophos and Varonis.

AlphaDrive plans to invest in companies across various stages, from seed to later stages, alongside larger-scale co-investments with Leumi Partners. The fund is expected to invest in companies founded by Israeli entrepreneurs. To date, it has invested in five startups, including companies founded by serial entrepreneurs operating at the intersection of AI and cybersecurity, alongside leading funds such as Greylock, Accel, CRV, Notable, Viola Ventures, and others.

AlphaDrive focuses on the intersection of the AI revolution and the cybersecurity world, a convergence that is driving profound change in the industry. At a time when AI giants are developing and releasing dedicated models used by both attackers and defenders, the industry is being fundamentally reshaped as these models absorb the logic of existing cybersecurity products. This trend is already reflected in the pricing volatility of publicly traded cybersecurity companies.

Alongside these challenges, significant opportunities are emerging for startups to challenge established cybersecurity companies through AI-native products that integrate multiple models, automate workflows via AI agents that replace human labor, and introduce new business models.

The AI revolution is also reshaping the venture capital industry itself, the boundaries between product and service companies are blurring, distinctions between early and late-stage companies are fading, development cycles are shortening, and AI-native companies can achieve meaningful revenues in a short time. Even internal fund operations are adapting to the AI era.

Against this backdrop, AlphaDrive has developed a unique investment model that combines several complementary and dynamic strategies. Integrating venture capital and private equity methodologies for AI-driven roll-up strategies (technology-enabled serial M&A), investing across the full company lifecycle, and building companies with serial entrepreneurs under a Foundry model. This model is supported by a global, multidisciplinary team with extensive shared experience.

The fund's team also includes Sharon Wagner, a serial entrepreneur who has sold several companies to technology giants including Microsoft; Dr. Uri Geiger, a venture capital and private equity investor; Kobi Katz, CTO of Maccabi Healthcare Services; and Susanne Senoff, who serves as CISO at Thoma Bravo Group company. In addition, senior technology and cybersecurity executives from international companies. Including TikTok, Warner, Chime, and Medtronic, are part of the extended team.

Yaron Elad, Managing Partner at AlphaDrive, said: "We built AlphaDrive after decades of working closely with entrepreneurs across the entire lifecycle of companies, from the earliest stages, through growth, to exit. Building a company has always been a roller coaster, but in the AI era it has become faster, sharper, and far more unpredictable.

"We see our role as partners in this journey, with a deep understanding of what it takes to build companies that succeed over time. AlphaDrive was established to operate precisely at these inflection points, with expertise in cybersecurity and AI, and with the ability to work with companies at different stages helping them grow effectively in the new world being built before our eyes."

Elik Etzion added: "We are in the midst of a powerful convergence between two of the world's fastest-growing industries, AI and cybersecurity, and this convergence is reshaping the rules of the game. At AlphaDrive, we are here to seize the moment. We have built a dedicated Cyber-AI task force, a unique team with proven experience navigating previous waves of transformation and disruption in the industry. Our goal is to enable entrepreneurs to seize the current window of opportunity and provide them with a broad value platform that will allow them to build companies shaping the future of the industry."