Yozma, Yozma Program, or Yozma Fund was a venture capital organization in Israel that initially started out as a government funded program in 1993 to help kick start venture capital, angel investing, and private equity in Israel's economy. $20 million of government subsidies went to the Yozma Fund, the other $80 million the government provided went to match other foreign and domestic firms, at 40%, to create their own venture capital funds in Israel. The VC companies could buy-back the governments equity stake over a 5 year period, and most did. The Yozma Fund privatized in 1997 and became the Yozma Group. [2]
Inbal is a government owned insurance company that underwrote and guaranteed up to 70% of losses for venture capital firms from 1992-1998. The Israeli Government helped start and fund business incubators and an R&D cluster during the 1990s. Many immigrants came to Israel during the fall of the soviet union in the 1990s post-Soviet aliyah and about ⅓ of them were skilled enigineers and scientists. [4]
Name | Est. | Capital | Foreign LP | LP Country | Portfolio | Exits | Exit Rate |
---|---|---|---|---|---|---|---|
Eurofund | 1994 | $20M | Daimler-Benz, DEG | Germany | 14 | 7 | 50% |
Gemini | 1993 | $36M | Advent Venture Partners | USA | 25 | 13 | 52% |
Inventech | 1993 | $20M | Van Leer Group | Netherlands | 33 | 16 | 48% |
Jerusalem Venture Partners | 1993 | $20M | Oxton | USA | 12 | 10 | 83% |
Medica | 1995 | $15M | MVP | USA | 10 | 5 | 50% |
Nitzanim | 1994 | $20M | AVX, Kyocera | Japan, Japan | 13 | 7 | 54% |
Polaris (Pitango) | 1993 | $20M | CMS | USA | 19 | 13 | 68% |
Star | 1993 | $20M | TVM, Siemens | Germany | 27 | 15 | 56% |
Vertex Holdings | 1996 | $39M | Vertex Int., Singapore tech | USA, Singapore | 29 | 16 | 55% |
Walden | 1993 | $33M | Walden International | USA | 21 | 10 | 48% |
Yozma | 1993 | $20M | None | Israel | 16 | 10 | 63% |
Total | $263M | 217 | 122 | 56% |
In 2024, the Israel Innovation Authority has launched a Yozma 2.0 with government funds of $155 million, looking to raise $700 million from private institutional venture capital investors, at a 30% match. [6] [7]
Private equity (PE) is stock in a private company that does not offer stock to the general public. In the field of finance, private equity is offered instead to specialized investment funds and limited partnerships that take an active role in the management and structuring of the companies. In casual usage, "private equity" can refer to these investment firms, rather than the companies in which that they invest.
Venture capital (VC) is a form of private equity financing provided by firms or funds to startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in terms of number of employees, annual revenue, scale of operations, etc. Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake. Venture capitalists take on the risk of financing start-ups in the hopes that some of the companies they support will become successful. Because startups face high uncertainty, VC investments have high rates of failure. Start-ups are usually based on an innovative technology or business model and often come from high technology industries such as information technology (IT) or biotechnology.
Funding is the act of providing resources to finance a need, program, or project. While this is usually in the form of money, it can also take the form of effort or time from an organization or company. Generally, this word is used when a firm uses its internal reserves to satisfy its necessity for cash, while the term financing is used when the firm acquires capital from external sources.
Sequoia Capital Operations, LLC is an American venture capital firm headquartered in Menlo Park, California which specializes in seed stage, early stage, and growth stage investments in private companies across technology sectors. As of 2022, the firm had approximately US$85 billion in assets under management.
The Texas Emerging Technology Fund is a technology investment fund created by legislation in 2005 at the urging of Governor Rick Perry to provide Texas with an unparalleled advantage in the research, development, and commercialization of emerging technologies. The enabling legislation launched the ETF with $200 million to help create jobs and develop the economy of Texas. Legislative revisions during the 2007 and 2009 sessions have expanded the total funds under management to approximately $500 million.
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Silicon Wadi is a region in Israel that serves as one of the global centres for advanced technology. It spans the Israeli coastal plain, and is cited as among the reasons why the country has become known as the world's "start-up nation". The highest concentrations of high-tech industry in the region can be found around Tel Aviv, including small clusters around the cities of Raʽanana, Petah Tikva, Herzliya, Netanya, Rehovot, and Ness Ziona. Additional clusters of high-tech industry can be found in Haifa and Caesarea. More recent high-tech establishments have been raised in cities such as Jerusalem and Beersheba, in towns such as Yokneam Illit, and in Airport City. Israel has the third highest number of startups by region and the highest rate of startups per capita in the world.
Norwest Venture Partners (Norwest) is an American venture and growth equity investment firm. The firm targets early to late-stage venture and growth equity investments across several sectors, including cloud computing and information technology, Internet, SaaS, business and financial services, and healthcare. Headquartered in Menlo Park, California, Norwest has offices in San Francisco and subsidiaries in Mumbai, India and Tel Aviv, Israel. The firm has funded more than 700 companies since inception.
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Enterprise Capital Fund is a British government financial programme that provides venture capital funding to Start-up companies that is operated by the British Business Bank.
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Klaus Hommels is a German venture capitalist. He focuses on early and growth-stage investments and has founded his own venture capital fund by the name of Lakestar, through which he has been investing mainly in digital businesses. He has been invested in Facebook, Skype and Xing; other examples are Klarna and Revolut.
Venture capital in Israel refers to the financial capital provided to early-stage, high-potential, high risk, growth startup companies based in Israel. The country's venture capital industry was born in the mid-1980s and has rapidly developed. Israel currently has more than 276 active venture capital funds, of which 71 are international VCs with Israeli offices. Israel's venture capital and incubator industry plays an important role in the booming high-tech sector that has been given the nickname "Silicon Wadi", considered second in importance only to its Californian counterpart, the Silicon Valley.
The Israel Innovation Authority (IIA) is the support and investment arm of the Israeli government, in charge of planning and executing the country’s innovation policy, promoting technological innovation and research and development (R&D) in the state of Israel.
OurCrowd is an online global venture investing platform that empowers institutions and individual accredited investors to invest and engage in emerging technology companies at an early stage while still privately held. Based in Jerusalem, the company launched in February 2013, and has since opened overseas branches in the United States, the United Kingdom, Canada, Australia, Spain, Singapore, Brazil, and the UAE.
Pitango VC, established in 1993, is Israel's largest venture capital fund with over $2.8 billion under management. Pitango VC invests through three dedicated funds, Pitango First, Pitango HealthTech, and Pitango Growth. Pitango invests in startups around the world, in domains such as Vertical SaaS, Digital Health, Deep Tech, FinTech & InsureTech, Devops, Generative AI, Web3, and FoodTech.
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