Israel Innovation Authority Announces 8 Winners In Tender To Establish Angel Clubs For Early-Stage Investments In Deep Tech

The winning groups will establish and operate Angel Clubs serving as platforms for Israeli and foreign private investors to invest in pre-seed stage startups in Israel

The Israel Innovation Authority announced the winners of its tender to establish Angel Clubs for initial investments in deep tech startups. From 40 submissions, eight proposals were selected to create and run new Angel Clubs with the support of the Innovation Authority. Each winning proposal will receive an operational grant of NIS 900,000 per year for a three-year period.

Gila Gamliel, Minister of Innovation, Science and Technology, said: “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 continue growing 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.”

Alon Stopel, Ph.D., Chairman of the Israel Innovation Authority, said: “In recent years, there has been a decline in the number of active Angels investing in pre-seed and seed-stage companies in Israel, especially in deep-tech companies. 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.”

Currently, most Angels operating in Israel invest individually, with very few organized groups of active Angels. An individual private investor can make smaller investments in a limited number of companies and has limited ability to evaluate ventures across diverse sectors and domains. In contrast, an Angel Club allows for professional management of the investment process and due diligence, enables syndicated investment by multiple investors, diversifies risk, increases the investment amount, and improves post-investment operational management. Consequently, this enhances the company’s chances of success and growth due to all club members’ investments and shared experience.

Behind the newly established Angel Clubs are strong partnerships from Israel and abroad, including venture capital funds alongside experienced local and international Angels, multinational corporations, academia, private companies, professional forums, associations, and more. The clubs will work to attract Israeli and foreign investors from around the world and expose club members to business investment opportunities in Israeli technological initiatives across various fields, emphasizing companies with deep technological expertise (deep tech).

The winners of the Angel Clubs track are:

1. TEClub VC LTD. – CEO, Stav Erez. TEClub VC is a new investor club for mega-angels from Israel and abroad interested in investing in breakthrough technologies at early stages through a smart and selective investment platform. The club also focuses on creating unicorn companies and Venture Creation models.
   
2. Investors Forum Ltd. – CEO, Eti Mitrani. “The Investors Forum is a new club comprising the Israeli Economic Leaders Forum and the CFO Forum of Israel’s leading corporations, the 81 Unit Alumni Association, Ben-Gurion University, the Arab Business Forum, the Haredi High-Tech Community, and senior figures in the high-tech world. The broad base of partners enables exposure to the giant companies in Israel, with an emphasis on DeepTech, as well as the creation of new startups around the needs of the industry in Israel and worldwide.
   
3. BABA METZIA GP LLP – CEO, Lior Elkan. Club members include Israeli and international companies and Angels with extensive experience in Angel investments, supporting startup companies, and having very extensive network with companies and investors. The club will act to generate widespread impact, have a strong investor base, attract new investors from around the world, and develop a long-term action plan to solve the initial fundraising barrier for startup companies at the beginning of their journey.
   
4. WINGS IL LTD. – CEO, Eliran Ezer. WINGS IL is a new investment club established to position Israel as a leader in investments and development of advanced Deep Tech technologies, aiming to immediately increase the pace and magnitude of investments as well as promote such initiatives starting from the very early stages of the ventures. The club will serve as the first “acceleration pipeline” for blue-and-white technology-rich startups, lead investments, help companies generate sufficient evidence of advanced technology, commercialize it, and progress to additional fundraising rounds from investors and industry.
   
5. ERETZ ANGELS LTD – CEO, Nir Blazer. Among its partners are business companies and public benefit corporations like Eretz Noshevet, Kibbutz Industries’ Association, Kama Fund from the Kibbutz Industries’ Association, KKL-Tzemach-Kinneret Investments and Development Ltd., and more. The club was founded as part of its shareholders’ strategy to expand the influence of Israeli technological innovation on the Israeli economy and society. The club’s shareholders, club managers, investment committee members, and experienced Angels have joined forces to assist entrepreneurs and accompany them in initial fundraising rounds and in growing their companies to have an impact on settlements, agriculture, economy, and society in Israel.
   
6. IL ANGEL CLUB LTD – CEO, Ram Yonish. The club includes experienced investors and the industry’s seasoned and serial entrepreneurs. The club has a comprehensive strategy to create multipliers for attracting companies, and investments, and providing comprehensive as well as in creating extensive strategic cooperation partnerships to promote and develop the companies in which they will invest. The club will operate in a unique model to create an international ambassador network to attract additional investors from around the world and lead initial investments in DeepTech companies.
   
7. EIGHT TWO HUNDRED ANGELS. LTD – CEO, Hader Abtalyon Dagan. The club was established in a broad partnership of leaders in the ecosystem, such as the 8200 Alumni Association, alongside venture capital funds Grove Ventures and IL Ventures, the Harel Insurance Company, and other strong partners. The club will invest in various fields, focusing on industry 4.0, AgTech, FoodTech, and more. It will assist in promoting the companies in which they invest, attract investors, and qualify investors interested in investing in innovative technologies and high-risk investments via the club.
   
8. Ziv Haft Consulting and Management Ltd. – CEO, Tamir Nahmias. The club, founded by BDO in partnership with SeedBiz, will consolidate and operate a broad network in Israel, the United States, the United Arab Emirates, Bahrain, China, India, Vietnam, and more. The club has a circle of hundreds of strategic partners and thousands of clients, including leading companies in the industry, banking establishments, and funds. The club includes many Angels and will work to connect entrepreneurs with investors, increase the volume of investments in Israeli initiatives, and invest in companies in fields such as ClimateTech, Agritech, FoodTech, Health, and Life Sciences.

Hanan Brand, Vice President and Head of the Startup Division at the Israel Innovation Authority 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.

Therefore, we are very pleased to launch today a complementary initiative to a series of tools we have introduced in recent months for the benefit of entrepreneurs at the beginning of their journey, including the Law for Encouraging Knowledge-Intensive Industry, doubling the grant amount at the ideation stage (Tnufa Fund), launching the Startup Fund that participates in the risk together with the investors throughout the company’s lifespan, a call for proposals to establish new deep-tech incubators in the Venture Creation model, and more. 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.”