The firm raised $52 million out of planned $100 million for a second fund.
Aviv Venture Capital closed its Aviv II Fund last month, but at only half of what the firm had hoped. 18 months ago, the firm announced that it would raise $100 million for its second fund and announced the first closing at $50 million in December 2007. One investment was made from the fund in 2008, in OzVision Ltd. Now, the market climate has compelled the firm to close the fundraising for the new fund at $52 million.
Aviv VC confirmed the report.
Aviv VC now manages $77 million in two funds. A technicality was behind the decision to end the fundraising for the new fund at far less than planned: the firm has 12 months from the announcement of the first closing to complete the financing of the balance of the planned amount. In the subsequent 12 months, Aviv was unable to raise more money and closed on the first amount.
Aviv VC is just the latest venture capital fund forced to scale back plans because of the crisis. Giza Venture Capital suspended its fundraising efforts after the first closing on its latest fund; Shlomo Kalish called off his attempt to raise an equity fund for late-stage investments; and Jerusalem Venture Partners (JVP) recently closed its latest fund at $150 million instead of the planned $200 million. Ongoing fundraising plans by other venture capital funds will also likely be put aside.
Published by Globes [online], Israel business news - www.globes-online.com - on January 21, 2009
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