INVEST IN ISRAELI STARTUPS

..VIA ISRAELI EQUITY CROWDINVESTING PLATFORMS

Israel has become famous as a leading source of innovation. Its coastal high-tech region, known as ‘Silicon Wadi’, empowers pioneering technologies in medicine, media, Internet, cyber-security, water technology, agri-tech, financial technology, telecom and more.

Most of these cutting-edge companies were hatched as startup ideas, which is why Israel is widely referred to as ‘the Startup Nation’.

Israeli startups are an attractive proposition for stakeholders – bringing life-saving and quality-enhancing advances to the world, and may generate significant for their investors.

Invest in Israeli Startups

Why invest in Israeli startups?

Unique Environment

Israel has hit on the ideal blend for marketable, sustainable startups by combining the sophisticated economics of a developed market with the vibrant fluidity of an emerging market.

Technological innovation is a cornerstone of the Israeli culture and economy, supported by robust global investment and legislation. Political challenges with neighbors, and small domestic market has meant that Israel’s entrepreneurs have been forced to think of commercial success at an international level, rather than just the domestic market.

Israel’s tech savvy audience has meant that entrepreneurs can go beyond proof of concept by testing the feasibility and marketability before promoting on an international audience.

Waze, Viber and Wix are only a few of Israel’s famous success stories. During the last decade alone, more than 750 Israeli startups were sold in deals that netted investors more than $50 billion dollars (£39 billion) During that same time period, the average investment in Israeli hi-tech yielded a return of more than 3 to 1.

Of the $4.8 billion invested in Israeli technology companies in 2016, around 4% was invested through equity crowdinvesting, a percentage expected to grow.

What is equity crowdINVESTING?

Crowdinvesting uses the collective power of a large group or ‘crowd’, who pool financial resources together to support a specific project. In equity crowdinvesting, the supporters become investors, and their funding of a business or project is in exchange for equity, with the objective of making profits on exit.

These equity crowdinvesting campaigns provide entrepreneurs a large spectrum of investors, from retail investors and professional, sophisticated investors. Essential financial are often organised by angel investors, high-net-worth individuals with the prior experience in spotting future successes while they are still in the embryonic private stage,before they go public on the capital market.

Equity Crowdfunding, however, is simpler and more accessible for investors than the traditional angel framework. You manage your investments online, quickly and securely. Any time you want to check on the progress of your project, you can log onto an organised portal with ongoing reports and self-manage your portfolio of investments.

Invest in Israeli startups

Why IT CAN work

Equity crowdinvesting allows ordinary investors to tap into opportunities once available only to big venture capital firms. The crowdinvesting site does all the work of sourcing high-quality startup investment opportunities, performing due-diligence research and negotiating with the startup for investment terms. All the ‘crowd’ has to do is choose which of these promising options to invest in, and close the deal with a click.

Crowd benefits as they are leveraging against by combining the wisdom professional / sophisticated investors. Beginners benefit from the wisdom of savvy professionals in pin pointing the rising market stars. The leading investors accelerate the development of their chosen project by increasing the invested capital. The project itself reaches its full potential, yielding the maximum ROI to all investors.

CAMPAIGNS

The easiest and most popular way to participate in equity crowdinvesting is to browse the regular equity campaigns already underway. By registering on the platform on the new equity campaigns as they come to market. You choose a company to invest in, and when the campaign hits its funding target, you become one of its shareholders. In line with the companies valuation, subject to its success, your share value will grow.

The established equity crowdinvesting platforms regularly present such campaigns, where you can find real-time opportunities to invest along side other experienced investors. Getting in ‘on the ground floor’ to maximise your profits is exactly the way the global VC companies put their resources to work.

Whilst investing in early-stage business has inherent risk, early-stage also has a great return on investment potential

 ISRAELI STARTUP Crowd INVESTing platforms

Ourcrowd, iAngels and ExitValley are the top players in Israeli equity crowdinvesting.

OURCROWD

OurCrowd, which launched in 2013, is ranked as Israel’s leading global equity crowdinvesting platform. With close to 20,000 investors from over 112 countries, the platform has invested over $440M(£341M) into 120 portfolio companies and funds. Founder and experienced entrepreneur, John Medved’s crowd funding know how has earned OurCrowd international recognition as ‘one of the largest crowdinvesting organizations on the planet’ (Forbes), and hands down the most successful equity-crowdinvesting platform in the world’ (Bloomberg Business Week).

IANGELS

IIn 2016, iAngels raised $50 million and invested in over 60 startups. In July 2017 alone, the platform tracked 31 announced deals totaling $515M, alongside 10 acquisitions for a disclosed $801M.

From hundreds of Israeli companies every month, iAngels selects only two of the most promising, which haven’t yet been showcased at investor forums. A diverse range of options is offered to iAngels crowdinvesting participants to increase investor success.

EXITVALLEY

ExitValley, launched in 2015, specialises in locating promising tech startups which can be funded by small investors, from £1000. Similar to that of Seedrs and Crowdcube, EV’s advantage is the full crowd platform allows you to handpick the tech startup you want, allowing everybody to invest in companies i.e. the ‘full crowd’ has access to invest in campaigns, therefore not limited to accredited / sophisticated investors.

As of early 2017, ExitValley completed 10 investment cycles in Israeli startups with a total of NIS20M (£4.3M).

NEXT STEPS

NOTE

Israelinvestment.org does not make investment recommendations to you, nor do we provide tax advice. No communications through this website or any other medium should be construed as an investment recommendation. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with israelinvestment.org, you should consult a professional adviser. With all investments, your capital is at risk. The value of your investment may go down as well as up. Your investment is not covered by the UK Financial Services Compensation Scheme (FSCS) or any other compensation scheme. Israelinvestment.org is a website that facilitates a community of investors, and is not FCA regulated. UK investors should seek advice from your professional financial adviser before undertaking an investment.

All of the Israeli professional investment advisory firms that we affiliate with are regulated by the Israel Securities Authority, the ISA, which is Israel’s closest equivalent of the UK’s Financial Services Authority.

All of the partner firms have a portfolio of international private investors as clients, predominantly but not limited to the United States and the United Kingdom