The initiative will be launching a series of 'reverse-fund syndicates', an investment model where a group of investors commits capital to a selection of startups pre-determined by VCs in Israel.
Igor Ryabenkiy, AltaIR Capital Managing Partner: “'Together with Sarona Partners and Ibex Investors we are establishing a fund to support startups facing challenges. The project's main goal is to help quickly overcome the team's difficulties in raising rounds. We truly believe in the strength of the Israeli ecosystem and consider our current mission to be supporting those who need our shoulder to rely on”.
The program focuses on startups affected by the war. The startup should be funded at the seed or Series A; serving at least three active customers; a monthly burn rate of up to $500k, and a total runway of 4-9 months.
The program focuses on startups affected by the war. The startup should be funded at the seed or Series A; serving at least three active customers; a monthly burn rate of up to $500k, and a total runway of 4-9 months.
An investment model where a group of investors commits capital to a selection of startups, allowing individual investors to choose which companies they want to back rather than investing in a traditional fund that makes those decisions for them. It is understood that each syndicate will consist of 5-10 pre-selected eligible companies, and the partnering VCs behind the initiative will allocate first capital to each one before opening it up to vetted Jewish and Israel-supporting investors worldwide. By November 11, roughly 40 companies had already applied.
Investors will be able to invest as little as $25,000 or as much as $5 million per syndicate, acquiring indirect equity positions in the syndicated companies and helping the critical cause of protecting the Israeli economy.
To qualify companies need to have been directly impacted by Israel’s ongoing war with founders, managers, or staff members called up to reserve duty thus causing operational restraints. Companies must also have raised at least Seed or Series A rounds and maintain service to at least three active customers.
Read more on Ctech and on Sarona Ventures site.