Ace Capital Partners Research
Investment Thesis
Ace Capital Partners (Ace) was founded in 2024 as a partnership between Key1 Capital (a Tel Aviv/New York growth-equity firm founded by former Goldman Sachs bankers) and Aerospace Spirit (founded by senior retired Israeli Air Force officers), and is backed by Harel Insurance. The firm's stated mission is to identify, invest in, and support startups shaping the future of aerospace and defense (AS&D) technology, civil and military. Its thesis rests on the view that future warfare and aerospace competitiveness will be determined by superior technology rather than by force size, and that soaring global military budgets and a shifting geopolitical landscape create outsized opportunity for AS&D-focused entrepreneurs. Ace pairs long-term capital with military operating expertise, positioning its partners' operational credibility (a former IAF Commander and a former Head of the IAF Technology Sector) as a differentiator in sourcing and diligencing defense-tech deals.
Sector Focus
Ace invests exclusively in aerospace and defense verticals, spanning both civilian and military applications: UAV/drone propulsion and platforms, autonomous ground and aerial robotics, satellite imaging and space domain awareness, and adjacent hardware-enabled defense technology. The firm does not appear to invest outside AS&D.
Stage Focus
The website states a focus on Series A and B rounds, but observed deal activity to date has been almost entirely seed-stage: Ace has led or co-led seed rounds in at least three portfolio companies (Lowental Hybrid, Starling Inc., Shifters AI) and participated in one seed round (Remondo). This suggests the firm is currently deploying earlier than its stated Series A/B focus, consistent with a young fund (est. 2024) building its initial portfolio at seed before reserving for follow-ons.
Check Size
Observed lead checks range roughly $5M (Lowental Hybrid seed) to $10.2M (Shifters AI seed), implying a typical seed check in the $2M-$10M range when leading. Exact check size in the Remondo round (a $20M seed led by 10D, with Ace as a syndicate participant) was not disclosed.
Lead Tendency
Ace leads. It led the seed rounds for Lowental Hybrid (Feb 2025), Shifters AI (Jun 2026), and Starling Inc. (May 2026), and participated (non-lead) in Remondo's $20M seed (Feb 2026) alongside lead investor 10D.
Recent Activity
Ace has been actively deploying since its first disclosed investment in February 2025:
- Feb 2025: Led $5M seed in Lowental Hybrid (Israeli UAV hybrid-propulsion systems), alongside Palo Alto Networks founder Nir Zuk and the Israel Innovation Authority.
- Feb 2026: Participated in Remondo's $20M seed (ultra-high-resolution satellite imaging), led by 10D, alongside 2i Ventures, Chartered Group, Starburst Ventures, and VentureIsrael.
- May 2026: Led the seed round in Starling Inc. (San Diego-based autonomous fixed-wing eVTOL drones), alongside Fresh Fund and Impatient Ventures.
- Jun 2026: Led a $10.2M seed round in Shifters AI (AI-native ground robotics for defense), bringing the company's total funding to $15M.
Portfolio milestone: in Jan 2026, portfolio company Lowental Hybrid was selected by Elbit Systems to supply its Native Parallel Hybrid propulsion system for tactical UAVs, a validating commercial win for the portfolio.
Portfolio Highlights
- Lowental Hybrid (lowental-hybrid.com) - hybrid propulsion systems for tactical UAVs; selected by Elbit Systems (Jan 2026).
- Shifters AI (shiftersai.com) - AI-native ground robotics for defense; $15M total raised as of Jun 2026.
- Starling Inc. (starling-systems.com) - autonomous fixed-wing eVTOL drones (Pathfinder-X platform) for ISR, border security, and critical infrastructure missions.
- Remondo (remondo.com) - sub-30cm resolution satellite imaging for space domain awareness and infrastructure monitoring; $20M seed, Ace as syndicate participant.
No exits or acquisitions have been publicly reported for the portfolio to date, consistent with the fund's young age and early-stage entry points.
Team
- MG (Ret.) Amikam Norkin - Co-Founder, Managing Partner. Former Commander of the Israeli Air Force (2017-2022); led the IAF's transformation to fifth-generation capabilities; 38-year military career commanding F-15 and F-16 squadrons and serving as Head of the IDF Planning Directorate. Also Co-Founder and Chairman of Aerospace Spirit.
- BG (Ret.) Shimon Tsentsiper - Co-Founder, Managing Partner. Former Head of the IAF Technology/Materiel Directorate; 28-year military career as an engineer and technology executive. Also Co-Founder and CEO of Aerospace Spirit.
- Amit Pilowsky - Co-Founder, Partner at Key1 Capital. Formerly at Goldman Sachs (Tel Aviv and London, 2005-2021), Head of Consumer & Retail at Cross Markets Group EMEA; MBA from INSEAD; served in the Israeli Air Force.
- Danny Ackerman - Co-Founder, Partner at Key1 Capital. 10 years at Goldman Sachs Tel Aviv leading TMT investment banking advisory and later the investment banking practice; MBA from Columbia.
- Sarel Eldor - Co-Founder, Partner at Key1 Capital. Former CEO of Goldman Sachs Israel and Head of the Growth Markets Financing Group in London; MBA from University of Chicago Booth.
- Noa Grinker - Associate. Previously advised investors on sourcing and diligencing startups across autonomous aviation, robotics, and defense technologies; served as a UAV Mission Commander in the IDF.
- Orel Hedvat - Office Manager. Prior experience coordinating forces in administrative/HR roles in the Israeli Air Force.
Decision Process
Small partnership structure (five Managing/Co-Founding Partners plus one Associate) rather than a formal investment committee; deal announcements are framed as "we" decisions from the partner group, consistent with a partnership-style decision process.
Founder Preferences
No formal published criteria, but investment announcements emphasize: founders with deep, hard-won operational insight into the problem (e.g., Starling's founder's drone-systems background), technical teams that ship field-tested products on short cycles, category-defining platforms that resolve long-standing technical trade-offs, and strong/accelerating commercial traction from credible (often defense/government) customers.
Geographic Focus
Global, with an explicit stated focus on Israel. Disclosed portfolio companies span Israel (Lowental Hybrid, Remondo) and the United States (Shifters AI - Washington, DC; Starling Inc. - San Diego, CA).