INVEST IN ISRAELI STARTUPS

..FROM OUTSIDE OF ISRAEL

Over the past decades, 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.

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 markethas meant that Israel’s entrepreneurs have been forced to think of commercial success at an internal level. 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.

Leadership Power

Thanks to the profound impact of Israel’s innovations, the global demand for these technologies is consistently high. The 2012 report by Startup Genome ranked Tel Aviv second among the best startup cities worldwide, based on its high-tech products, financing, startup culture and supporting infrastructure.

Outstanding Profits

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 (£3.6 billion) invested in Israeli technology companies in 2016, around 4% was invested through this new channel, known as equity crowdfunding.

“If people want to see the future of the world economy they should look to Tel Aviv, home to hundreds of startups and research centres” -Barack Obama

What is equity crowdfunding?

Crowdfunding uses the collective power of a large group or ‘crowd’, who pool financial resources together to support a specific project. In equity crowdfunding,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 crowdfunding 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.

Why equity crowdfunding works

Equity crowdfunding allows ordinary investors to tap into opportunities once available only to big venture capital firms. The crowdfunding 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.

What is attractive about extra advantages are many. 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.

Equity crowdfunding campaigns

The easiest and most popular way to participate in equity crowdfunding 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 crowdfunding 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, is also increases the opportunity for profits.

Crowdfunding platforms for Israeli startups

Following are three top players in Israeli equity crowdfunding.

OURCROWD

OurCrowd, which launched in 2013, is ranked as Israel’s leading global equity crowdfunding 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 crowdfunding organizations on the planet’ (Forbes), and‘hands down the most successful equity-crowdfunding platform in the world’ (Bloomberg Business Week).

IANGELS

IAngels has grown rapidly since its launch in 2014. In 2016, it 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 crowdfunding 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).EV are not seeking investment from the UK for their Israeli startups at this stage, however they welcoming investment into their UK Expansion crowdfunding campaign.

Get in touch

Interested In *

Note

The cautious startup investor combines knowledge, experience, analysis, and intuition to estimate the likelihood that a company will succeed across a range of economic scenarios, and then evaluates the financial potential of the opportunity to determine the maximum price they are willing to pay for the company’s equity.

Dividends paid by an Israeli corporation are subject to a dividend withholding tax, typically at a reduced rate depending on your country of residence.

Investing with influence on your side doesn’t remove the risk of investing in early stage companies. This content on this sitenot constitute investment advice

JOIN OUR COMMUNITY TODAY

ISRAELINVESTMENT.ORG NEWSLETTER

Subscribe to receive our special offers and updates

We respect your privacy, and will not pass on your details to any third parties.

ISRAEL INVESTMENT FORUM LINKEDIN GROUP

Apply to join

Share This