JANVEST Capital Partners is a U.S.-based venture firm directed at premium early stage innovation within Israel’s emerging technology market. Our aim is to identify and invest in the country’s most dynamic seed and pre-seed businesses through the utilization of a disciplined data-driven investment strategy and a bi-national team of highly experienced managers and operators. JANVEST’s sector and stage focus is dictated by a desire to partner with and provide real value to exceptional entrepreneurs at the point where concept and commercialization intersect.
JANVEST Capital Partners maintains a sector, stage, and valuation disciplined investment strategy, which takes into account the unique economics surrounding M&A trends within Israel’s innovation sector. Through this strict focus, we are providing investors with the ability to capitalize upon both large outlier exits, as well as smaller, earlier stage acquisitions most commonly associated with Israel-based emerging technology companies.
JANVEST focuses on sectors that have a proven track record of high performance and capital efficiency. For this reason, we are exclusively investing in B2B solutions in the areas of Cyber & Information Security, Connectivity, Data Analytics, Software, and Business Intelligence.
JANVEST targets pre-seed and seed technology companies that are either at a mid to late phase of R&D or into initial stages of commercialization. As part of a company’s first set of institutional investors, we aim to participate in early capital raises and reserve the right to invest more in follow-on rounds subject to the performance of that business. At this early stage, JANVEST’s management team and advisors have the ability to take a more hands-on, value adding role in each portfolio company in order to accelerate development and quickly get to market in preparation for a larger round of funding or early stage acquisition.
Dynamic founding team / Proof of concept or marketable product available / Previous investment received (F&F, incubator, accelerator, OCS, etc.) / Multi-vertical applications / Intellectual property protection (preferred)
Over the last two decades, Israel has emerged as one of the most dynamic technology markets in the world. With more start-ups per capita than any other country and a government that both supports R&D and incentivizes the financing of high-tech, venture capitalists and enterprises from around the globe have and continue to find Israel an ideal ecosystem in which to invest. That ecosystem, specifically throughout the last decade, has filled with both domestic and foreign venture funds, Angel investors, Angel investment networks, web-based equity crowd-funding platforms, accelerators, incubators, and micro-VCs. Yet, despite the inundation of financing partners for Israeli start-ups, there remains an investment gap, which JANVEST has been capitalizing upon since its inception in 2010.
In the wake of the 2008 to 2011 global economic downturn, the traditional venture capital firms began moving into later stage investing in order to deploy larger dollar amounts into more mature companies as part of a greater risk mitigation strategy. Almost immediately the average deal sizes for these big venture firms began increasing. By 2016, the average financing round had reached $7.2MM – almost 20% above the $5.1MM five-year average.
For Israel’s start-up community, this investment strategy shift by the VCs created a shortage of capital for companies raising financing rounds of $500,000 to $2MM, otherwise known as “Seed Capital” or “Momentum Capital”. In 2013, seed financing was responsible for 9% of all capital raised in the Israeli market. This fell to just above 5% by 2016 further highlighting the industry’s rapid shift away from early stage investing. Participating at this financing round provides JANVEST with the ability to not only access premium deal flow and negotiate optimal terms without significant competition from the plethora of big venture firms in the market, but the capacity to uniquely take advantage of mergers and acquisitions trends within Israel’s innovation sector.