Accelerator program fusion Today it announced the final closing of its $20 million fund to invest in pre-existing startups created by Israeli entrepreneurs. The fund has already invested in more than 30 Israeli startups since its first closing last year. Fusion intends to remain the most active pre-seed platform in Israel and is targeting 60-80 new investments by 2026.
The fund is backed by industry leaders, including global software investor Insight Partners, Gigi Levy Weiss, Liad Agmon and Ofer Ben-Noun, among 70 other entrepreneurs and venture capitalists from Israel and the United States. Special advisors to the fund include Daniel Chinar, Michael Ronen, Perry Wallach, Haggie Schwartz, Hemi Zucker, Clancy Starr and Shani Zanesko.
Fusion invests $150,000 in startups that are between the idea stage and the production / seed stage. The company strives to lead the pre-seed category in Israel by being the first check-in and providing a value-added platform for entrepreneurs beyond capital investment, similar to Y Combinator. The Fusion platform supports entrepreneurs targeting the US market – with offices in California, as well as direct access and introductions to investors, mentors, advisors, and potential future clients.
Fusion was founded in 2017 by Jay Katsovich and Jair Vardi. Since then, Fusion has invested in more than 100 startups, including Agora, DigitalOwl, Base.ai, Innplay Labs, and Hoopo. More than 20% of Fusion portfolio companies are led by women founders, and more than 70% of companies have completed a successful investment round following the program, averaging $2.5 million.
Katsovich said: “At a time when investments in Israel are down 75% compared to last year, we believe it is a great time to continue investing in Israeli companies and taking risks where angels and venture capital firms may hesitate or stop. During the past five years, we have been one of the most active investors “Under the radar”, we have invested in more than 100 companies. We plan to continue at the same pace, in contrast to the trend we have seen in the past few years: raising (very) big funds and using (too) capital quickly.
He added, “We want to replace the ‘friends and family’ round, and be the first to give startups a check with incorporation. Venture capital firms aren’t first choice at most startups – they lead the first ‘institutional round.’ Today more than ever, First-time founders, or those in sectors unfamiliar to Israeli investors, need to secure seed capital in order to hit compelling milestones before they are “capital ready.”At Fusion, we have 200 founders who can vouch that we are the real early adopters and offer support Along the way “.
Published by Globes, Israel business news – en.globes.co.il – on June 1, 2023.
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