Author: Zack Miller

Venture capital in Israel: What is it, who’s winning, and the future of startup investing

Venture capital in Israel: What is it, who’s winning, and the future of startup investing

Jan 7, 2013 | , ,

For small companies to grow, they need access to capital (how much money they need is a whole OTHER subject). Cash-strapped startups have a tough time growing.  While the landscape is currently changing, startups traditionally turn to venture capital firms for funding. What is venture capital Venture capital is a very important source of funding for startups and small businesses that don’t have access to capital markets. As part of the Israeli startup ecosystem, venture capital is institutionalized in the sense that it is done by professional organizations focused on investing in startups. These firms, in turn, have to report to their own investors and work to provide a positive return for them. Before they make a single investment, venture capital firms (VCs) raise investment funds from accredited investors (US definition here) and from other asset managers. These funds have specific mandates — rules and frameworks that define the types of startup investments they make. These mandates can be sector-specific (eg biotech fund) or focused on maturity (eg. late stage startups) or follow general investment criteria (eg. strong team,...

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2013 and beyond: Israel as finance hub

2013 and beyond: Israel as finance hub

Dec 27, 2012 |

As Israel’s startup ecosystem matures, one of the key components of future growth will be sources of capital. Capital helps grease the wheels of commerce and is a lynchpin in Israel’s success with its startips. But those sources of capital are changing… Israel VC 2.0 Israel’s VC industry has experienced fantastic growth over the past decade. As the nature of startup investing has changed — smaller, quicker rounds with smaller exits — Israel’s venture capital industry has had a hard time adapting. The emergence of companies like OurCrowd, a crowdfunding platform to invest in Israeli startups are arising to fill the gaps left behind by traditional funding sources, some of whom are shuttering funds and struggling to raise new ones. VCs are just part of the picture If you look at financing business as part of a greater cycle, VCs and their funds address the early-stage growth companies. That’s just part of the financial picture. But what happens when these firms grow up and require different sources of capital? Israeli hedge funds are starting to emerge. Israeli hedge funds by the...

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Following Microsoft, Google launches incubator in Tel Aviv

Following Microsoft, Google launches incubator in Tel Aviv

Dec 23, 2012 |

Seven years ago, Google began operations to build a 16,000 square foot building that is to be used as an incubator for Israeli startups in Tel Aviv. With Prime Minister Netanyahu in attendance, the building was finished and officially opened on December 11th. According to Haaretz, some 100 Israeli startups will benefit from the new building per year. The incubator will have a mentoring system implemented as well, where experts from around the world will teach and educate the young entrepreneurs. After a two week intense program in the incubator, the companies will learn about business development, how to shape their biz models, marketing, product strategy and technology from the best in the world. They also offer a space for developers and entrepreneurs to attend and organize events with speakers, mentors and other entrepreneurs; and also a “hack space” and device library to develop and test new ideas. Incubators and their role in the Israeli startup ecosystem Israeli startups benefit from the oversight and guidance from incubators. Given the global competitiveness in the tech space, more and more Israeli incubators and accelerators are popping up across the...

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Lucid Energy lands deal in Portland

Dec 20, 2012 | ,

Lucid Energy just agreed to terms with Portland Water Bureau that will begin the permitting process for construction of the first hydroelectric system installed in the cities pipelines. Lucid Energy Inc. is a provider of renewable energy systems. Lucid Energy’s patented LucidPipe Power System enables industrial, municipal and agricultural facilities to generate clean, reliable, low-cost electricity from their gravity-fed water pipelines and effluent streams. “We are very pleased to kick-off the first LucidPipe project in Portland,” said Gregg Semler, President and CEO of Lucid Energy Inc. “We’re seeing a lot of interest in our product from communities and water utilities around the world, so it’s exciting that Portland will be among the first to complete an installation. It really speaks to Portland’s understanding about the importance of the convergence of water and energy in building a sustainable economy and it will set an example for water agencies all over the world that, like Portland, are looking to reduce energy costs and embrace clean energy and smart water innovation.”(Environmental-Expert.com) Lucid Energy is working on projects in New York, Texas, California, Oregon, Canada and...

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2012 Entrepreneur of the year is…Israeli and a woman

2012 Entrepreneur of the year is…Israeli and a woman

Dec 19, 2012 |

Pink-haired, Israeli MIT-grad Limor Fried was just named Entrepreneur Magazine’s Entrepreneur of 2012. Limor Fried — who’s colloquially known as Lady Ada — runs adafruit Industries, a $4.5 million company with 25 employees and produces some cool gadgets. Israeli entrepreneurs go global The lip-pierced engineer received her masters from MIT and the Media Lab. In many ways, she embodies the modern Israeli entrepreneur. She’s intellectually curious — a tinkerer at heart. She lives the lifestyle and products she sells. She’s every bit one of the crowd she sells to. According to the article: [bra_blockquote align=””]Last year New York City-based Adafruit did a booming $10 million trade in sales of DIY open-source electronic hardware kits, so-called because project designs are free and publicly accessible, and customers are encouraged to modify or “hack” the final product. In addition to MintyBoost ($19.50), the online catalog includes in-house designs like the iNecklace ($75), a pendant shaped like an Apple gadget’s “on” button, complete with a pulsing LED light; and third-party products that have earned the “Adafruit seal of approval,” like the MaKey MaKey ($49.95),...

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