One of our goals at Isratech Services is to find Israeli Start Up companies that we see are likely to boom in the coming years and give investors a significant return on investment. The companies that we have recommended to our investors in the past 2 years are all doing very well and each is making the progress that we were hoping for.
Our primary goal is to offer our investors quality investments, not quantity. We are not looking to take on a new project so that we have something new to offer. We would much rather take our time, and see the company developing for a few months before starting to raise capital for them. There are several companies we are currently keeping a very close eye on.
We are ideally looking for what is called a "3rd level Start Up Company". That means that the company has ususally done a first round of financing, the product has already been developed and sales have already begun. These companies usually need financing in order to do a big marketing campaign, often it is in order to take on a team of salesmen and other staff in order to take the company to the next level. However, some of the companies we look at are still in the development stage.
Why do Start Up companys come to Isratech Services for funding, why don’t they just go to a VC (Venture Capital) firm ?
Venture Capital firms will look at a companys financial needs and will put up all the money that the company is looking to raise. Often this can be in the $10’s of millions. In return the VC will demand to have ownership over a large portion of the company, they will want to be on the Board of Directors and be a part of any major decisions that are made, and they will want to get a better deal and purchase the shares at a lower price. All in all they will take as much of the company as they can get.
When a company like Isratech Services raises capital for a Start Up, we turn to small private investors. We usually look for companies that are looking to raise $1 to $3 million, and are looking to have investors invest $25,000 to $100,000. On such a small level the private investor does not have the power to demand anything that the VC is able to. He looks at what is on offer and takes it or leaves it, there is nothing to negotiate. This makes it much better for the Start Up in the long run, they get to reap more of the financial rewards themselves when the company becomes profitable.
If you are interested in hearing about investment opportunities in Israel as and when they happen send an e-mail to is***********@gm***.com
Yaakov Sandler
Isratech Services
Jerusalem