This article belongs to our exclusive single-family office guidebook, where we give guidance on the most relevant topics for newly established and already existing family investment vehicles. It was contributed by Maor Investments, a leading Israeli technology co-investment fund.
The investor landscape in Israeli technology has evolved along the development of the local market, and includes a wide variety of strategic and financial players. Private financial investors like family offices can gain exposure to this highly growing market in one of the following manners:
- Conduct direct investments through investor clubs or crowdfunding platforms, on a per-investment basis; this path can generate investment opportunities in the short-term, but may be limited in scope and quality of deal flow, as well as demand higher attention from family offices management and execution.
- Become a limited partner (LP) of an Israeli-focused venture capital (VC) fund, or an international VC fund, that also operates in Israel; these funds usually have strong sourcing capabilities and may also create co-investment opportunities for family offices in portfolio companies of the funds. However, we note that the latter type of funds, international investors that operate in Israel, usually cannot guarantee how much of the investor’s commitment will indeed be invested in Israeli technology, so the breadth of exposure may be unknown.
The landscape of Israeli VCs is wide and deep, with approx. 130 local VCs. Different funds vary from each other by their investment strategy: certain funds would only invest in early-stage ventures, while other would only invest in more mature companies, which are in their “growth” stage; Some funds would always “lead” rounds (i.e., will be the main investor in a certain round, the one who defines the terms), while other would co-invest alongside other funds; Most funds invest only directly, but some funds operate as “fund-of-funds” and only invest in other funds etc.
Each investor which considers investing in a VC fund, should carefully take into account its investment strategy and choose the fund which suits the most its risk/reward appetite, and investment horizon.
About the author of the article
Maor Investments is a venture capital fund focused on growth-stage Israeli tech companies. With European roots, and boots on the ground in Israel, Maor enjoys a strong multicultural and multifunctional team, well-established at the heart of the Israeli tech ecosystem. Maor provides its investors, mainly family offices and HNWI, with a unique investment vehicle, wrapped in European LP-friendly setup.
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