TLDR:
- Israel Innovation Authority launches Yozma Fund 2.0 to encourage investments in Israeli venture capital funds.
- The program aims to attract institutional investors and boost the stability of the local venture capital market.
The Israel Innovation Authority and the Ministry of Finance have announced the launch of the Yozma Fund 2.0, a program designed to catalyze $700 million in investment in Israeli venture capital funds supporting local companies. The fund targets institutional investors like insurance companies and pension funds, providing them with a mechanism to enhance returns on their investments over the next 20 months. The program operates without direct intervention from the Innovation Authority, allowing investors to make decisions based on their established policies.
The goal of the fund is to support Israeli high-tech companies, facilitate connections between institutions and local venture capital funds, and enhance market stability against global economic fluctuations. The program’s budget is around $160 million in state funds, which will be used to leverage investments from institutional investors. The Innovation Authority will contribute 30 cents for every dollar of institutional investment and waive its share of returns to enhance returns for investors.
Institutions participating in the program have the option to buy out the government’s stake in the fund under specific conditions, with additional incentives provided for investments in deep technology companies. Overall, the Yozma Fund 2.0 aims to boost investments in Israeli venture capital funds and strengthen the local high-tech ecosystem.
