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The portfolio approach to investing in startups

Should startup investors bet heavily on one sexy startup? Or, should you keep your investments in startups relatively small and spread them out over multiple early stage companies? This question of how many startups an investor should invest in is one of the most frequently asked questions in the startup investing world. For people who invest in venture capital funds, it’s not really a question they need to address. They assign a representative — a venture capital fund — to make investment decisions on their behalf. But with the rise in popularity of angel investing and crowdfunding, investors are becoming more active in the startup investment process. The issue of the right number of startup investments an investor should make becomes a more integral part of the investment process. 2 approaches to investing in startups Concentrated, large bets: This approach is all about zeroing in a single or small number of investments with a relatively large bet on their success. It’s like a sniper who is down to just a couple of bullets in his investment gun. When he pulls...

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On Crowdfunding: An interview with the award-winning journalist, Amy Cortese

Amy Cortese is an award-winning journalist and author who has written extensively on crowdfunding. Her book, Locavesting: The Revolution in Local Investing and How to Profit from It addressed an early, growing trend of investing locally and she recently penned an article for the New York Times entitled “ The Crowdfunding Crowd is Anxious about recent developments in the crowdfunding sphere. I recently had a chance to ask Amy a few questions on the connection between local investing and crowdfunding. Why do you think investing in local communities is so important, and how are investors accessing local opportunities? Amy Cortese: At a macro level, small businesses are having a hard time obtaining the capital they need to grow and expand, and that is holding back an economic recovery, since small, young firms create the bulk of jobs in this country and drive innovation. But there’s a more intimate side to this as well: across the country, many communities are struggling. Their downtowns and Main Streets have chipped away by box-box stores, strip malls, e-commerce and globalization. And that affects tax revenues,...

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Network Technology Giant, Cisco acquires Intucell For $475M

M&A in the 2013 Israeli start-up realm begins with a bang as Network equipment giant, Cisco acquires Intucell  for a whopping $475M. Intucell’s technology provides a solution for cellular networks to optimize their mobile traffic’s speed and keep disrupted calls to a minimum. Founded in 2008 and located in Raanana, Intucell has grown at a rapid pace, evolving from an idea to a commercial success in less than a year, and has branched out on a global scale to the United Kingdom and Singapore. US based Bessemer Venture Partners, one of the most successful VC funds in the world, will take close to half of the sales price, after funding Intucell’s $6M series a investment round in late 2011, entirely on their own. Intucell’s Co-Founders, CEO Rani Wellingstein and VP products Ido Susan stand to make a nice chunk of cash as well estimated at around $80M each. This is the 12th company and one of the largest deals made by Cisco in the Israeli technology market. The Wall Street Journal summary of M&A in 2012 showed that even...

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Abe’s Market featured in Israel’s Globes

OurCrowd portfolio company Abe’s Market was covered in Israeli financial daily Globes earlier this week for having raised $5M in its latest funding round. Globe’s clip on Abe’s Market adds to the press coverage the company has received recently, including an article in Fast Company’s Co.Exist from last week. OurCrowd members invested in Abe’s alongside Carmel Ventures, Accel Partners, and...

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OurCrowd portfolio company Abe’s Market featured in Fast Company

The natural products industry is in serious growth mode, too. Natural Foods Merchandiser’s 2012 Market Overview Natural Retailers Survey shows that nationwide, sales of all natural and organic products (including dietary supplements) within all channels jumped 10 percent to nearly $91 billion last year. Lydia Dishman, contributor to Fast Company’s Co.Exist, featured OurCrowd portfolio company Abe’s Market in a clip on January 19. Richard Demb, Abe’s cofounder and CEO, told Dishman his focus was on harnessing the rapid growth of the natural products industry while retaining the unique qualities that made Abe’s a popular destination for shoppers today. “Every day we hear from hundreds of consumers with particular needs and wants,” Demb said. Abe’s success will undoubtedly be connected to its continued focus on a customized shopping experience as it grows. OurCrowd members invested in Abe’s alongside Carmel Ventures, Accel Partners, and...

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