- A New Form of Early-Stage Investing: The Fund’s marriage between innovative early-stage ventures and experts in global commercialization helps reduce the risks of early-stage investing.
- The returns of early-stage investment, with the structure of a well-managed fund.
- Experienced eye for global commercialization informs selection of investment candidates.
- Early stage partnerships between Israeli innovators and Korean corporate managers guide portfolio company strategies.
- Fast track to revenue and profitability through direct channel to global commercialization, resulting in faster cycle to liquidity events and reduced risk of dilution.
- Investment Strategy: Our diligence process consists of reviewing the technology, the market, the competitive landscape, intellectual property and regulatory and reimbursement issues as well as the fit with potential commercialization partners in Korea. The fund will prepare an assessment as to the potential exit paths. We follow up our initial assessment with discussions with potential customers, doctors and strategic partners in order to evaluate the true commercial potential of the technology.
- Investment criteria: The Fund will invest in companies in early stages of development. The Fund plans to take a 20-30% equity stake in each venture. These companies will have demonstrated a well-defined and thought-out business strategy and hired a strong core management team and professional leadership. The most important criteria for investment consideration include: Breakthrough platform technologies; Well-crafted business model; Strong position in markets with large sales and profit potential; Solid intellectual property; Capable management team; Strategic Fit/High exit potential.
- Target Investment Areas: The Fund plans to invest in drug development, diagnostics, medical devices, bionanotechnologies, veterinary therapeutic & diagnostics, and healthcare IT.
- Investment Thesis: Our view is that there is an unmet and large opportunity to fund research and early stage companies prior to traditional venture capital rounds. Traditional venture capital funds, with large amounts of capital under management, are not able to serve this pool of entrepreneurial talent at the critical early stage. (Recent announcement of $100M Samsung technology fund for Israel and US startups shows relevance of this strategy.)
- First Mover Advantage – The Fund’s strong relationships with major Israeli life science research institutions, including Weizmann, Technion, Hebrew University, Chief Scientist’s Office and the Incubator/venture community, which ensures access to deal flow. The Fund’s on-the-ground presence in Israel will allow for ongoing portfolio management. The Fund also maintains strategic connections with large corporations in Korea as well as relationships with the international pharmaceutical/biotech industry and capital markets.
- Why Korea? Korea has a remarkable economy. It’s a country with a proven record of building an economic powerhouse from one of the poorest countries in the world:
- Exceptional strength in speed; will to succeed through hard work.
- Number 1 status in the following industries at least once in the last 10 years: shipbuilding, consumer electronics, steel making, Internet & communications infrastructure, and semiconductors.
- Korea is an established test market for many global companies before launching new products.
- Largest Korean corporations choosing biotech, medical devices and healthcare as next generation strategic business (e.g., Samsung/Quintiles $275 million joint venture).
- Government funding of Korean venture capital to nurture the growth of life sciences by small and medium businesses.
- Why Israel? Israel has the highest amount of innovation and entrepreneurship in the world.
- The most start-ups per capita.
- More companies on NASDAQ than companies from all of Europe, Korea, Japan, India, and China combined.
- The biggest destination for global VC per capita.
- OECD report ranks Israel first in a list of venture capital investments as a percentage of GDP (2011).
- 2.5 times as many global VCs as the US per capita.
- 30 times more than Europe per capita.
- 80 times more than India per capita.
- 350 times more than China per capita.