Key Takeaways
- • Group 11's fifth fund returned to profitability in 2025 with a net unrealized gain of $64.4 million after three consecutive years of losses, driven primarily by a single IPO exit (Navan) that generated $89 million in unrealized gains.
- • Fund assets recovered to $252.6 million, marginally exceeding their $247 million level at end-2021, despite a cumulative 24% negative return over the prior three years when assets had declined to below $190 million.
- • The fund, which is Group 11's only vehicle open to qualified public investors, trades on the Tel Aviv Stock Exchange's TASE UP platform, providing limited secondary market liquidity for institutional and accredited investors.
- • Dovi Frances, the Beverly Hills-based venture capital firm's founder, holds advisory roles with Israeli political figures while maintaining active involvement in fintech and defense technology investments, including a partnership with Prime Minister Netanyahu's son Avner.
- • The rebound masks ongoing realized losses of $24.6 million in 2025 (from liquidations and asset sales), indicating that paper gains remain concentrated in unrealized positions dependent on continued valuation appreciation.
Summary
Group 11's fifth fund has emerged from a three-year period of sustained losses following the IPO of one of its portfolio companies, marking its first positive year since inception. The Beverly Hills-based venture capital firm, led by Dovi Frances, reported net unrealized gains of $64.4 million for 2025, reversing a trajectory that had eroded investor capital by approximately 24% cumulatively between 2022 and 2024.
The fund's asset base had contracted from $247 million at the close of 2021 to below $190 million at the trough, driven by repeated downward valuation adjustments as technology stocks faced sustained headwinds. The 2025 recovery was anchored by $89 million in gains from unrealized investments, with the Navan IPO serving as the primary catalyst for the fund's return to profitability. However, the positive headline result reflects significant realized losses totaling $24.6 million when accounting for $18.6 million in realized losses during 2025 and $6 million in losses from asset sales, underscoring that gains remain largely paper-based and contingent on sustained valuation performance.
Fund assets have now recovered to $252.6 million, marginally exceeding their 2021 year-end level before accounting for a $3 million dividend distribution to investors. Group 11's fifth fund is distinctive as the firm's sole offering available to qualified public investors since its November 2021 launch, when it raised $197 million (including $4 million from the general partner). Units trade on the Tel Aviv Stock Exchange's TASE UP platform, which provides liquidity mechanisms for private companies and alternative investment vehicles.
Frances maintains prominent roles in Israeli technology and policy circles, serving as an adviser to Prime Minister Benjamin Netanyahu on artificial intelligence matters and appearing as an investor on the Israeli version of *Shark Tank*. His professional network has expanded to include defense technology investments; Netanyahu's son Avner works alongside Frances in a defense tech fund established during 2025. The fund's recovery, while significant on a percentage basis, reflects the concentration risk inherent in venture capital portfolios where a single successful exit can materially alter annual performance despite underlying portfolio headwinds.
The fund's asset base had contracted from $247 million at the close of 2021 to below $190 million at the trough, driven by repeated downward valuation adjustments as technology stocks faced sustained headwinds. The 2025 recovery was anchored by $89 million in gains from unrealized investments, with the Navan IPO serving as the primary catalyst for the fund's return to profitability. However, the positive headline result reflects significant realized losses totaling $24.6 million when accounting for $18.6 million in realized losses during 2025 and $6 million in losses from asset sales, underscoring that gains remain largely paper-based and contingent on sustained valuation performance.
Fund assets have now recovered to $252.6 million, marginally exceeding their 2021 year-end level before accounting for a $3 million dividend distribution to investors. Group 11's fifth fund is distinctive as the firm's sole offering available to qualified public investors since its November 2021 launch, when it raised $197 million (including $4 million from the general partner). Units trade on the Tel Aviv Stock Exchange's TASE UP platform, which provides liquidity mechanisms for private companies and alternative investment vehicles.
Frances maintains prominent roles in Israeli technology and policy circles, serving as an adviser to Prime Minister Benjamin Netanyahu on artificial intelligence matters and appearing as an investor on the Israeli version of *Shark Tank*. His professional network has expanded to include defense technology investments; Netanyahu's son Avner works alongside Frances in a defense tech fund established during 2025. The fund's recovery, while significant on a percentage basis, reflects the concentration risk inherent in venture capital portfolios where a single successful exit can materially alter annual performance despite underlying portfolio headwinds.
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