Investment

This is the country that attracts the most cross-border family office venture investment

Capital from families mostly stays at home. Even billionaire families keep most of their capital at home. And when it comes to high-risk venture investing family capital remains even more at home. 

But there’s one country where family capital does move more fluidly across borders when it comes to venture, and that’s Israel. Of course, Israel attracts plenty of global Jewish capital, but non-Jewish capital also invests in the country’s venture sector, and that trend appears to be on the rise. 

The two-way cross-border investments of family capital is also strong in the other direction – Israel-based family offices investing in tech outside of their home market

Crossborder family capital likes Israel because it has one of the most dynamic venture sectors in the world, particularly in biotech, software, and food/agri tech. The World Economic Forum reckons there are around 4,000 active startups in Israel, and the country raises around two-and-a-half times more venture capital per capita than the US, and approximately 30 times more than Europe. 

“The innovation culture is so ingrained in the country’s psyche that Israel has the highest number of startups and engineers per capita in the world,” says Philippe Gelin, who recently moved to Tel Aviv from London to attract global investment into the Israeli venture sector.  

But capital from Israel-based family investment groups also moves outside of Israel to bolster venture capital in other parts of the world. The flow is in both directions, making it truly crossborder much more than any other country on a per capita basis. 

One of the biggest deals in the sector – and one that shows capital flowing into Israel doesn’t just come from wealthy Jews in other parts of the world – is the $300 million invested into the digital and nanotechnology group, Landa Digital Printing, by German family office, SKion. The German-based family investment group belongs to Susanne Klatten, Germany’s richest woman.

Non-Jewish money is also being committed from China-based family offices. Junson Capital, the Hong Kong-based investment office of the Cai Kui family, recently invested in MultiVu Technologies, an Israel-based 3D imaging platform. Junson seeded the startup with two other investors with $7 million last summer.

Of course, Jewish investors from other parts of the world contribute a substantial amount of the family capital flowing into Israel’s venture sector. Perhaps the best-known example of this is Claridge Israel – a joint venture between Claridge, the family office of Stephen Bronfman, and Caisse de dépôt et placement du Québec, one of Canada’s most prominent institutional investors. 

Set up in 2015, Claridge Israel has invested in security-linked venture groups including D-Fend Solutions, a counter-drone security system, and Cyberbit, a cybersecurity platform.

Other external Jewish-based investors have set up venture businesses in Israel like the pharmaceutical heirs of the Weinstein family, originally from Chile, who set up Isreal-based group Olive Tree Ventures a few years ago. 

Recent notable family capital money flowing into the country’s venture sector have also come from Planven Investments, the Swiss-based family office of Carlo De Benedetti, and CPT Capital, the investment office of UK-based private equity specialist Jeremy Coller. 

Planven invested in Israel startup TechSee and CPT Capital, a big investor into meat-substitute tech, invested in Israel-based Redefine Meat, the world’s first company to develop a new additive manufacturing technology specifically for food printing.

Square Peg Capital, a Sydney-based venture fund, backed by one of Australia’s wealthiest families, the Libermans, has made numerous investments into the Israeli tech sector. And of course, multiple US investment groups owned by Jewish families are big investors in Israeli tech. 

But the two-way cross-border investments of family capital is also strong in the other direction – Israel-based family offices investing in tech outside of their home market. 

Back in January, the investment office of one of Israel’s wealthiest women, Ruth Wertheimer, backed a German-based robotics group Synapticon with $11.5 million in funding. Rhodium, an investment group, owned by Daniel Recanati, a member of the prominent Israel-based Recanati family, seeded Livekick, a US-based online personal fitness platform, earlier this year. 

These are just some of the examples of the dynamism and cross-border nature of family capital investing in venture worldwide, which is linked to Israel. There are many more deals happening, which aren’t being made public. 

All in all, Israel is probably the best example of cross-border family capital flows in the world – particularly when it comes to venture. And there is little reason why that flow won’t continue to grow in the years ahead. 

Subscribe

You will need a Premium Plus Subscription to access this database.

Exclusive news, analysis and research on global family enterprise and private investment offices.

Access to the most comprehensive fully interactive database on global family offices, principal investment offices, and family enterprises.

Check Deal Data, Senior Staff, and New Analysis on more than 500 family/principal investment and holding groups

Already have an account? Login

Subscribe

You need at least a Premium Subscription to read this article.

The most comprehensive information service on the global family enterprise world, featuring exclusive news, analysis, research and data on global family enterprises, family offices, and private investment offices.

Premium

£299

per year

  • Exclusive reports, analysis and commentary
  • Exclusive access to family/private investment office deal information
  • Exclusive interviews with principals and senior management of family/investment offices
SUBSCRIBE NOW

Premium+

£399

per year

  • Access to All of Premium
  • Access to all of FamilyCapital Analytics, our interactive database with more than 500 detailed profiles of family investment groups

More Info

SUBSCRIBE NOW

Already have an account? Login

You've reached the end.

Continue reading free articles by registering as a Member.
Or choose a Premium Plan.

Membership

Free

  • Exclusive reports, analysis and commentary
REGISTER NOW

Premium

£299

per year

  • Exclusive reports, analysis and commentary
  • Exclusive access to family/private investment office deal information
  • Exclusive interviews with principals and senior management of family/investment offices
SUBSCRIBE NOW

Premium+

£399

per year

  • Access to All of Premium
  • Access to all of FamilyCapital Analytics, our interactive database with more than 500 detailed profiles of family investment groups

More Info

SUBSCRIBE NOW

Already have an account? Login

Leave a Reply