Jerusalem Post
08-17-1999
Local technology investment bank Jerusalem Global intends to establish a new "angels club" aimed at providing private investors with an opportunity to participate in hi-tech investment, the company's vice president for investment banking, Ari Gorlin, told The Jerusalem Post yesterday.
The new service, which will be launched at the end of the month, will allow wealthy individuals to invest in promising companies at an early stage.
Gorlin said that club members will be invited to regular meetings in which they will be presented with investments opportunities in technology companies primarily from the Internet industry. He added that the minimum investment is expected to be approximately $100,000.
Gorlin added that club members should realize that they will see return on their investment only after three to five years. He added, that investors are also warned that investing in the promising hi-tech industry is very risky and the number of failures is usually substantially higher than the rate of successes.
According to Gorlin, the company was approached by several banks which are looking to provide their private banking clients with added value services. He added that the banks are also interested in establishing "angels clubs" but can't provide the necessary services.
The investment bank said that it has received close to 100 applications from potential investors through its newly launched Internet site Yazam.com, which is aimed at servicing as a resource center for entrepreneurs and investors.
According to Jerusalem Global's vice president for investment banking, J.J. Sussman, the company has received some 130 business plans from start-up companies since the establishment of the site. Jerusalem Global has decided to pursue financing for three of those start-ups.
The rapid success of the local hi-tech sector has led to increased interest by private investors, who find it difficult to invest in young and promising companies since the majority of venture capital funds prefer to deal with institutional and strategic investors. In addition, the minimum investment requirement is usually relatively high, preventing individuals from enjoying the hi-tech boom.
Jerusalem Global is the latest to approach the rapidly growing niche of private investors looking for hi-tech investments. Last month, a new venture capital fund specializing in seed investments, ProSeed the Angels Venture Capital Fund, said it is looking to raise some $12.5m. to $25m. from private investors, limiting the minimum investment to only NIS 200,000.
Copyright 1999 Jerusalem Post. All Rights Reserved
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