Most investments start with a pitch. This one started in basic training. I’ve known Dr. Asif Sinay, QEDMA’s CEO, for nearly 25 years. Watching his evolution from a fellow Talpiot cadet, always curious and questioning the status quo, into a leading physicist and tech executive—now running one of the most promising startups in quantum computing—has been a privilege. Our latest Glilot+ investment in QEDMA is the result of this front-row seat to the company’s journey since day one.

When Asif and I caught up a few years ago and I learned about the founding of QEDMA, I could not have been more impressed with his co-founders. The name of Prof. Dorit Aharonov, a world-renowned pioneer in the field of quantum fault tolerance from the Hebrew University, immediately caught my ear, having studied several of her papers back in my university days. If Dorit was on board, Asif was likely onto something huge. Rounding out the founding team was Prof. Netanel Lindner from the Technion, one of the leading minds today in quantum computing systems. The three independently realized that understanding the unique noise profile of each quantum device could unlock practical error-mitigated quantum computers and propel the industry forward. Asif brought the team together, and thus QEDMA was born.

The Quantum Bottleneck: Why Errors Matter

Quantum computing holds extraordinary promise—from simulating complex molecules with pharmaceutical applications to solving exponentially complex optimization problems, and perhaps most importantly (at least to us at Glilot Capital)—undermining the fundamental cryptographic principles on which the entire cybersecurity industry was built decades ago. But there’s one major problem holding it all back: errors, the “noise” inherent in quantum systems.

Quantum bits (qubits) are incredibly fragile. As systems grow in size and calculations become more complex, error rates quickly compound, overwhelming useful output with noise. While quantum error correction offers a theoretical solution, the cost is enormous—up to 1,000 physical qubits to reliably encode a single logical one. That’s simply not viable with today’s hardware.

This is where QEDMA comes in. QEDMA is bridging the gap between today’s noisy quantum devices and tomorrow’s scalable quantum computing. Their approach is entirely software-based and hardware-agnostic—making it both powerful and practical from a market reach standpoint. By learning the specific noise characteristics of each quantum processor, QEDMA can tailor quantum algorithms to suppress and mitigate errors during the algorithm’s execution on that processor. The result: significantly larger and deeper quantum circuits can run successfully on today’s available hardware. Importantly, QEDMA is already developing proprietary methods that will combine error mitigation with error correction, building a unified stack that scales with quantum hardware improvements.

Real-World Validation from IBM and Beyond

When we started our due diligence of QEDMA, we quickly realized that the solution was not just promising in theory—QEDMA’s approach has already been validated by the industry. In September 2024, IBM selected QEDMA as one of only three companies whose technology would be embedded directly in its Qiskit platform, the leading open-source SDK for quantum computing. After benchmarking QEDMA’s performance, IBM found that it enabled up to 1,000x increases in quantum circuit volume—a dramatic improvement in what has been computationally possible on IBM’s own hardware till that point. It was only natural, then, to bring IBM Ventures into the Series A round, alongside leading Asian fund Korea Investment Partners (KIP), existing investors TPY Capital, and several other quantum expert funds and angels.

This strategic partnership, alongside several yet-unannounced similar ones with the world’s leading quantum hardware vendors, served as a strong signal to us that QEDMA was not just a transitory tool in the burgeoning quantum computing industry—it was well-positioned to become a critical layer in the quantum software stack, enabled for every quantum hardware out there.

Why Glilot+? Why Now?

At Glilot+, our core focus has always been cybersecurity and enterprise software, built on Israeli deep-tech cutting-edge technologies. We believe that the rise of quantum computing is set to redefine the cybersecurity landscape itself. Once quantum computers reach scale and computational advantage over classic systems, they’ll potentially have the power to break today’s cryptographic protocols—forcing a total rethinking of how we secure digital systems.

We have been tracking this space closely for several years. While many startups are chasing new ways to build qubits, we made a clear decision: we would invest only in software-layer solutions, where we could leverage our experience and conviction, while avoiding the ongoing battle over quantum hardware technologies being waged by some of the world’s largest and most well-funded companies, including IBM, Google, Amazon, Microsoft, and others. We met many teams—but QEDMA stood out, both from a standpoint of its practicality in today’s market (evidenced by QEDMA’s early commercial traction), and from its promise for future quantum systems. QEDMA is exactly the kind of company we set up Glilot+ to support, and we are proud to lead this Series A round and back Asif, Dorit, Netanel, and the whole team in building a critical foundation for the quantum era.

Blog Series | Part Two | From Unknowns to Unicorns

Over the many years I’ve been part of the technology and finance scene, I have seen a very clear evolution with respect to both VC and startup cultures. These are two intertwined industries that are unique in that they do not rely upon experience or past successes to determine future success. Rather, they require agility and keen observations into the changes that are taking place at all times. Over the past decade, I have noticed incredibly positive shifts that are contributing to both VC and startup success in Israel today. 

The Israeli Startup Market is Maturing

The total amount of money flowing into the Israeli market has grown significantly. When Glilot started in 2011, VCs managed about two-billion USD. Now in 2021, we are seeing a significant increase to around ten billion USD. Furthermore, when Glilot first started, the big companies born in the 90’s such as Checkpoint, Verint and Nice were trading at a one to two billion USD market cap. There were no unicorns – the idea of a startup with over a one-billion USD valuation was unheard of in Israel.

This has changed completely over the last decade.

We now have a large, mature industry that is working like a well-oiled machine.  When the Startup Nation launched in the 90s, the focus was primarily on semiconductors followed by telecom, with enterprise software not being on the radar. The last decade changed this and thus began the era of enterprise software. The list of exits over the past decade has largely consisted of startups serving other companies, and turning Israel into a hub for multinational companies as a result of the quality of the startups here.

The profile of Israeli entrepreneurs has also changed to a more experienced bunch and it is the companies of second-timers or entrepreneurs that came from C-level tech and business positions at large companies that Glilot and other VCs have focused on. An Urgency for Working at Startups

Another significant change that occurred over the last decade across the Israeli tech industry is the increased desire to launch or work for a startup. The demand to work for an innovative company that will change the world is very high, compared to the desire to work for a big stable company.

People want to make an impact.

For Glilot, this notion resonated from our inception and our investments in, and support of, these startups is what defined our brand identity. Now, a decade later, Glilot has grown to a center-stage VC fund. To this day we have maintained our vision of a founder-friendly fund, which provides as many resources as possible to our portfolio companies in order to drive their growth as trusted partners.

Continued Optimism as Technology Takes Center Stage

With the great developments that took place over the  past decade, I also hold a great deal of optimism about the next decade. I truly believe in a bright future. Technology will continue to take center stage and it will be driven by continued focus on the cloud and cloud migration (which accelerated during the pandemic). I believe we will see less investment in companies that cater to huge data centers, but rather those with a focus on cloud infrastructure (IaaS, PaaS, SaaS). Fortunately, this is where Glilot is strong.  Furthermore, when we began, not many startups aspired to be big, but rather to make a quick exit.

Today, startups are planning to grow through to IPOs as opposed to early exits.

Glilot has positioned itself well to support these companies, with its Value Creation team, robust Advisory Board and most recently, its new early-growth fund, Glilot+. Of course we will see challenges throughout, but the market is responding to these trends and the needs that come with them. In summary… Building a startup is like building a physical building.

The foundation is very important, which is why we at Glilot focus on providing unique support at the start of the startup’s journey.

We, along with our portfolio companies remain flexible and agile, yet strategic. Successful startups think big and broad but are strong in product technology. Without the ability to do both well, they will not succeed. Finally, it’s still all about the people – not just the Founders but also the first hires across the board – whether in development, marketing, sales or the like. Developing the capabilities to get the best product out there with right people is key. Glilot has remained true to its vision which I believe is a driving force for success over the past decade and will continue to guide us in the future.

Manchester City, one of the most dominant football teams in the world, has been a force under Pep Guardiola. They’ve won back-to-back championships, set records, and played breathtaking football. But this season (2024/2025), something changed—or rather, something did not change. The same tactics that had made them unstoppable were no longer working as well. Opponents adapted, the competition evolved, and suddenly, their dominance was in question. Success, ironically, had become their biggest threat.

This phenomenon isn’t unique to sports. In business, companies that don’t evolve, even at the peak of their success, eventually decline. The best leaders understand that what worked yesterday won’t necessarily work tomorrow. That’s why at Glilot Capital Partners , even after achieving an almost 90% net IRR in our first fund and being named the best-performing fund globally, we constantly challenged ourselves to change. The market was evolving, competition was getting tougher, and technology was shifting. Staying still wasn’t an option.

The Nokia Lesson: What Happens When You Don’t Adapt

Nokia was once the undisputed leader in mobile phones. Their devices were everywhere, their brand was synonymous with reliability, and their market share was unrivaled. Yet, when the smartphone revolution began, Nokia was slow to adapt. They underestimated the shift, clung to their existing technology, and resisted embracing change. The result? They went from being the king of mobile to an afterthought in just a few years. Their failure wasn’t due to a lack of resources or talent—it was due to an inability to recognize that staying the same was the riskiest move of all.

Microsoft’s Bold Pivot: Betting on Change

In contrast, Microsoft provides a masterclass in embracing change. In the early 2010s, the company was seen as a legacy giant losing relevance in the new cloud and mobile-driven world. Many believed their dominance in enterprise software would gradually fade. But Satya Nadella took over and made bold moves—shifting the company’s focus to cloud computing with Microsoft Azure , embracing open-source technology, and rethinking their entire software distribution model. At first, some questioned these changes. But today, Microsoft is stronger than ever, with its cloud business driving massive growth and its stock price soaring. Their success came not from holding onto the past but from actively reinventing themselves.

GenAI: The Ultimate Test of Adaptability

Today, we are witnessing another massive shift—Generative AI. It’s reshaping industries, transforming the way businesses operate, and redefining competitive landscapes. Companies that embrace this change and integrate AI into their operations, products, and decision-making processes will unlock incredible opportunities. Those that resist, dismiss, or delay will find themselves left behind. #GenAI is not just another trend; it’s a fundamental shift, much like the internet or cloud computing before it. The question is: Will your company evolve with it or be disrupted by it?

The Key Takeaway: Change Isn’t Optional

Whether in sports, startups, or global enterprises, the principle remains the same—complacency is the enemy of long-term success. Winning today doesn’t guarantee winning tomorrow. The best teams, the best companies, and the best leaders are those who recognize when it’s time to adapt and act decisively.

Pep Guardiola understands that, he has been around for a while, he introduced some changes, but none was enough. I cant tell if he should have been more aggressive on changing field tactics, or replacing old stars or something else. Some times its difficult to know what is the right change, but one thing for sure, no matter how successful you are , you need to change, otherwise you will surely fail(!)

Blog Series | Part One | It’s all About the Entrepreneurs

 

Since founding Glilot Capital ten years ago, I’m amazed, but not surprised, at how much has evolved in the venture capital and tech landscape. I consistently evaluate the steps we have taken as a venture fund and look to the industry as a whole, learning valuable lessons along the way that have been key in supporting our portfolio companies from seed to scale. 

First obvious lesson is that the founders are the most important piece of the puzzle. The work we do is meaningless without them, as we do what we do to help the founders and increase the odds for them to be successful. There are many contributing factors to the success of a startup including product offering, GTM and Investors support. But at the end of the day, without solid Founders, the startup foundation will crack.

The startups that succeed today are run by Founders who can lead while being part of the team; Those who possess technological know-how as well as strong business acumen, and those who have the desire and persistence to be successful, no matter what falls in their path.

Consistently Challenge Your Model of Conduct

I’ve learned that no matter how successful you become, you must also continue to consistently challenge your beliefs and model of conduct. In the VC world this is especially tricky. As humans, we tend to rely on our experience to drive us forward – that we can replicate the past experiences that led to success in order to drive further success. However, in the VC and tech ecosystem, if you rely on this model, you are bound to make many mistakes. I’ve learned that we need to constantly reexamine our thesis – to base our decisions on what is relevant today or what we believe will be relevant in the future, not two years ago, because in this industry, two years is a lifetime ago.

These learnings are what has enabled us to succeed and get to where we are after a decade –  The biggest achievement of which, in my opinion, is helping the entrepreneurs become successful. Former generations of entrepreneurs would launch their startups and end up with minimal money in their pockets, if any. This would often result in their return to the workforce as employees in large companies, or set them back in their career in some way. 

Success is Not Only Exits and Returns

Today I look back and am in awe of the high success rate of entrepreneurs. At the beginning of Glilot’s run, we were measuring success by the number of exits and returns. Today we add to that the fact that we are seeing many second-time entrepreneurs – a testament to the fact that our partnership with them offers more than just monetary value, but it positions them well for the future.

So What Does the Future Hold?

The Israeli ecosystem is in a great place right now and I’m more optimistic than ever about how it will play out over the next decade. From a technological perspective, I believe we will continue to see a boom of cybersecurity and cloud related companies.

The motivation and ‘no-fail’ attitude of the entrepreneurs behind these companies are driving them to move forward, and will lead them to grow as companies instead of exit.

Additionally, something has changed in the dynamics of the entrepreneurial world over the last couple of decades. 20 years ago, it was more difficult to be an entrepreneur. Today there is an increase in the amount of available funding, making it easier to build a company from the ground up as opposed to changing an existing company. Startups will continue to grow in the Israeli ecosystem as Israeli entrepreneurs have proven themselves to be successful and we will find ourselves seeing more unicorns and more multi-billion dollar companies.

Finally, the VC and tech world is slowly becoming more diverse. We are starting to see increases in under-represented communities such as women,  the Ultra-Orthodox and Arabic communities, but it’s still not where we want it to be. This is a harder goal to achieve, but given the increased awareness, I am optimistic we will see a more diverse representation.

This is also something I have been pushing forward as Co-Chairman of Power in Diversity, a bottom-up initiative inspired by Kate Mitchell and the American National Venture Capital Association. We aim to increase diversity in the Israeli startup industry.

In Conclusion

The last decade has shown many shifts, from an increase in Israeli serial entrepreneurs to an increase in cloud and cyber startups, and more. The venture capital space is one that is ever-evolving, and one that requires a consistent thrive to stay ahead of the curve. I am optimistic that this is only the beginning, and look forward to seeing what the next decade will bring. 

The Moment When Your Heart Is Pounding (And Why It Means You’re On the Right Track)

Every entrepreneur has been there. That moment when your heart is racing, doubt creeps in, and you wonder if you have what it takes to keep going. As a founder—and a (sometimes reluctant) runner—I know that feeling all too well.

Years ago, after a long break from running, I decided to get back into it. Not even a kilometer in, my heart was pounding, my lungs were burning, and I thought, “I’m completely out of shape.” But I kept at it, trained consistently, and pushed through the discomfort. And here’s the thing—even now, after years of running, that feeling still hits me in the first couple of kilometers. The difference? I expect it. I know that if I push through, my breathing will settle, my body will adjust, and I’ll find my rhythm.

Startups work the same way. Every founder faces moments that feel impossible. The difference between a first-time entrepreneur and a seasoned one isn’t avoiding challenges—it’s knowing those challenges are temporary, pushing through, and finding your stride.

Experience: The Ultimate Endurance Trainer

I learned this the hard way when the dot-com bubble burst and nearly took my first startup with it. Clients disappeared, budgets dried up, and raising capital became nearly impossible. It felt like the world was caving in. But instead of throwing in the towel, we looked for other opportunities—and found unexpected traction in Japan, where the economy was more stable. That experience was brutal, but it shaped how I approach challenges. Later, when other ventures hit rough patches, I had the resilience and confidence to navigate them, knowing persistence and adaptability always win.

Take Stewart Butterfield, the founder of Slack. Before Slack revolutionized workplace communication, he was building a gaming company that ultimately failed. But instead of walking away, he saw potential in an internal communication tool they had built and pivoted. That experience—the failure—helped him recognize an opportunity others might have missed.

Building Your Entrepreneurial Endurance: A Guide for First-Time Founders

You can’t shortcut experience, but you can prepare for those gut-check moments by learning from others and building mental resilience. Here’s how:

• Surround Yourself with Experience: Find investors and serial entrepreneurs who’ve been through tough times. Their insights can help you avoid mistakes and keep perspective.
• Hire Leaders Who’ve Weathered Storms: A great executive isn’t just someone with big wins—it’s someone who has battled through setbacks and come out stronger.
• Study the Journeys of Successful Founders: Don’t just focus on their wins. Understand the struggles they faced and how they overcame them.
• Trust Yourself and Your Team: When pressure builds, lean on your co-founders, key team members, and advisors for support and encouragement. Build a culture where problems are tackled together, not in isolation.

The grind is inevitable. That early-stage chaos, the uncertainty, the stress—it’s like the burning in your lungs at the start of a run. But if you expect it, embrace it, and keep pushing forward, you’ll break through.

So, the next time your heart is pounding and it feels like everything is falling apart—remember, this is part of the process, embrace the challenge, and keep running.

For years, I was a devotee of the Lean Startup method: starting low and slow, spending the minimum required to test client needs, developing a minimal viable product (MVP), and carving out a small niche to grow from. But the biggest opportunities today demand something entirely different. They demand speed, audacity, and the ambition to reshape industries rather than merely competing within them.

I call this The Mean Startup.

It’s about identifying a huge problem in a massive market, moving aggressively, and forcing the entire industry to adapt to you.

There’s never been a better time to build this way. AI is forcing huge market resets. Incumbents are more vulnerable to newcomers than ever before. This is true for any market segment, from enterprise software to cybersecurity, finance, defense, and beyond. Incumbents are on the defensive. Moreover, substantial capital is available to the right entrepreneurs. Good investors are eager to invest in big and innovative opportunities. While raising early-stage funding is never easy, if your idea is big enough, funding will come.

The Mean Startup Strategy: Five Principals for Aggressive Market Domination

 

1. Find a Massive Problem, Not Just a Cool Idea

• The best Mean Startups don’t start with a product—they start with a market in that has an urgent pressing need.
• Look for markets where customers are frustrated and actively seeking new solutions, incumbents are slow or outdated, and the stakes are high.
• Don’t ask, “what is the next step?”, ask: “What problem is so big that the world will pay anything to solve it?”

2. Move (Very) Fast

• When a market is in flux, speed is critical.
• Launch fast and evolve based on what customers actually need.
• The goal is to become indispensable to clients before anyone else does.

3. Own the Market by Evolving with It

• Your first product version won’t be the final one—and that’s fine.
• Become the default choice for solving the problem, then keep expanding your offering.
• Evolve as the market evolves; don’t fall in love with your original offering.

4. Don’t Just Compete—Make Incumbents Irrelevant

• Competing with big players is a great sign that you’re in the right place.
• Reshape entire industries rather than simply competing within them.
• Change the rules of the game by introducing disruptive innovations that force the entire market to adapt.

5.    Aggressive Financing

• Raise more than you think you actually need. Allow yourself to do more; more than others, more than the your original plan, more than is what seems obvious.
• Bring on investors with deep pockets that have the passion, desire, and need to build big companies.
• Raise when you can, always be ready for the next round of financing.

Examples of Mean Startups;

 

1. OpenAI – Redefining Enterprise AI

Moved fast with ChatGPT, becoming the AI company enterprises trust. Allowing OpenAI to own a huge market as it was created and put incumbents on the defensive from day one.

Enabled OpenAI to dominate a massive market from the start, putting incumbents on the defensive.

2. Anduril Industries – Owning the Future of Defense

Built AI-powered defense systems, winning huge contracts while legacy contractors lagged. By moving fast, Anduril became a major force shaping modern military technology over shadowing huge companies with years of experience and billions of dollar of contracts values.

3. Snowflake – Redefining How Enterprises Handle Data

Challenged traditional database companies with cloud-native solutions. Used speed and focus to revolutionize enterprise data management and transformed into a data cloud giant,

In recent years, we are using this methodology and seeing great results. Take Noma Security , that takes on tackling the entire AI and Data security domain or Sweet Security, that is taking on cloud security, Guardz that is reshaping SME security market, ScaleOps that is redefining cloud cost management, and LayerX Security that is providing a wide powerful browser security platform. They all started fast and are moving even faster, to create a big impact on a massive market.

And of course, we have a handful of stealth mode companies that are following the same approach.

The #MeanStartup method isn’t for the cautious and it’s not the right approach for every founder in every domain. It requires vision and courage. But for those who can execute it, the rewards are immense. As we’ve seen with our portfolio companies and other successful examples, this approach can lead to rapid growth, substantial funding, and the potential to reshape entire markets.

In today’s fast-paced, AI-driven world, the Mean Startup might just be the most effective way to build a company that doesn’t just succeed, but dominates.