New fund launched for war-affected early-stage startups

ICA in Israel, Rashi Foundation and venture capital firm Southern Israel Bridging Fund (SIBF) have launched a joint venture to invest in startups with technologies committed to impact society. The partnership will invest up to $140,000 in each venture.

The emphasis of the fund will be on early-stage startups seeking seed funding. The threshold conditions and criteria for receiving funding include that the company is registered in Israel, its main business should be in impact fields, the relevant fundraising round will include additional investors, the company has the potential for significant growth and expansion, and the startup must submit a business plan that will be examined in terms of major business potential, investment potential and social impact.

In addition, if the company has received support from the Israel Innovation Authority, has a preliminary proof of feasibility (POC) or a registered patent – this will be an advantage in making the decision for it to receive investment.

The rationale behind the venture is that impact investments are an effective tool for promoting social leadership, and a means of strengthening Israeli resilience. In the first stage, the fund will have $4 million to invest, and the aim is to add additional funds in order to increase the investment.

“To strengthen the resilience of the ecosystem”

SIBF specializes in investments in companies focusing on renewable energy, food-tech, healthcare, agritech, and technologies to make industrial enterprises more efficient, and it supports companies through to growth financing rounds. To date, SIBF has invested in 38 tech companies with valuations of several millions of dollars up to $20 million.

SIBF’s team will support the companies chosen by the new fund based on a go-to-market strategy. Support will include business development, product development, bringing it to potential target customers and assistance in future financing rounds.

SIBS founding and managing partner Or Ben Shoshan said, “The decision to launch the joint venture to invest in startups, especially in the northern regions and the Israel-Gaza border, stems from the desire to strengthen early-stage companies that have been affected since October 7 and during the Swords of Iron War. Such an investment in young companies can provide them with the business impetus to succeed.”

The current move, Ben Shoshan explains, is intended to “Strengthen the resilience of the Israeli ecosystem, which is the second most mature market in the world after Silicon Valley. Israeli technology has always been at the forefront of global innovation, and despite all the challenges, we believe it will continue to bring wonderful entrepreneurship to the world.”

For 40 years, the Rashi Foundation has been engaged in social action to promote equal opportunities in Israel’s geographic and social periphery, in the fields of education, employment and family. ICA is a philanthropic foundation founded by Baron Hirsch, which promotes rural development in the Galilee, the Negev and the Arava.

Published by Globes, Israel business news – en.globes.co.il – on April 3, 2024.

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