JERUSALEM, Nov 29 (Reuters) - Jerusalem Global Ventures said on Thursday it has launched a $200 million equity fund that will invest in private Israeli-related technology companies.
JGV said in a statement the new fund’s closing will be in April of 2008. It will invest in technology companies that “are on a trajectory to an initial public offering within three years and have a proven business model.”
It said investments will be $5 million to $20 million in companies with late-stage financing needs of $10-$50 million.
”There are some interesting things going on in Israeli technology,“ Shlomo Kalish, JGV’s founder said. ”The number of private companies with revenue of more than $10 million has exploded and we see more in the pipeline.
“There is still pressure for such firms to exit too early. This fund will help successful companies bridge that gap and get to a point where they can realise their full value,” he added.
Kalish pointed to Mellanox (MLNX.O) MLNX.TA as an example of a firm the fund will invest in. Mellanox, a JGV portfolio company, earlier this year raised $102 million in a Nasdaq IPO.
Venture capital funds have said that in contrast to quick exits of just a couple of years for Israeli tech firms that took place prior to the bubble bursting in 2001, exits now will be longer and companies will need to show actual revenues. (Reporting by Steven Scheer; Editing by Paul Bolding)