Key Takeaways:
- The Israel Innovation Authority has selected eight proposals to establish Angel Clubs for investing in deep tech startups.
- Each winning proposal will receive an annual operational grant of NIS 900,000 for three years.
- The initiative aims to support early-stage investments in agriculture and other sectors.
- Angel Clubs will enhance investment processes, diversify risk, and increase funding for startups.
- The clubs will foster partnerships with local and international investors and organizations.
Israel Innovation Authority Announces Angel Clubs to Boost Agricultural Innovation
The Israel Innovation Authority has announced the winners of its tender to establish Angel Clubs for initial investments in deep tech startups, including those focused on agricultural innovation. From 40 submissions, eight proposals were selected to receive operational grants of NIS 900,000 per year for a three-year period.
Supporting High-Tech and Agricultural Growth
Gila Gamliel, Minister of Innovation, Science and Technology, emphasized the importance of this initiative, stating, “The initiative to establish Angels Clubs announced this morning joins a long line of initiatives by the Innovation Authority this year aimed at assisting startups and companies in raising additional investments and continuing to grow in Israel. Given the economic data presented, it is evident that the high-tech sector is a central growth engine of the Israeli economy, contributing 20% of GDP and 53% of exports. Therefore, we must persist in investing in this growth engine, which serves as a stabilizer for the Israeli economy even during crises or slowdowns.”
Addressing Decline in Early-Stage Investments
Alon Stopel, Ph.D., Chairman of the Israel Innovation Authority, noted the decline in the number of active Angels investing in pre-seed and seed-stage companies, particularly in deep tech sectors like agriculture. He said, “These initial investments are crucial for nurturing new startup companies that are vital to the future of the Israeli high-tech sector. Last year, we enacted the Knowledge Intensive Industries Law, providing significant tax benefits to private Israeli individuals investing in startups and establishing the new Startup Fund. Now, we are pleased to announce the establishment of the selected new clubs from among numerous excellent proposals, aimed at encouraging private investors, both local and international, to invest in promising Israeli companies at their inception.”
Selected Angel Clubs and Their Focus Areas
The winning Angel Clubs include:
- ERETZ ANGELS LTD. – CEO, Nir Blazer. Focuses on the impact of Israeli technological innovation on agriculture and other sectors.
- EIGHT TWO HUNDRED ANGELS LTD – CEO, Hader Abtalyon Dagan. Invests in fields such as AgTech and FoodTech.
- Ziv Haft Consulting and Management Ltd. – CEO, Tamir Nahmias. Includes many Angels and focuses on sectors like ClimateTech, Agritech, and FoodTech.
Discover the complete list here.
Hanan Brand, Vice President and Head of the Startup Division at the Israel Innovation Authority, highlighted the critical role of Angels in supporting startups. He said, “Private investors – ‘Angels,’ have always been a critical resource for establishing startup companies in Israel, both in terms of funding and the significant added value they provide to entrepreneurs at the beginning of their journey. However, there has been an inherent failure in this field – it is extremely difficult for entrepreneurs to find private investors willing to invest in young companies, and for potential investors, it is challenging to manage a structured and orderly process of exposure and investment management in startup companies.”
Brand added, “We believe that all these initiatives, together with the establishment of Angel investor clubs, will inject momentum into the establishment of new startup companies, for the benefit of the future of Israeli high-tech.”
