Benchmark Capital, which has been active in Israel though a dedicated venture capital fund since 2001, has decided not to raise a third Israel fund. Benchmark manages $500 million, including the Benchmark Israel II Fund, raised in 2005.
Benchmark's Israeli general partners are Michael Eisenberg, Arad Naveh, and Elie Wurtman.
There are two types of international venture capital operating in Israel. Some have a designated fund for investments in Israeli start-ups, such as Greylock Partners and Sequoia Capital. Others have single headquarters, usually in Silicon Valley, from which they make global investments from local offices on the basis of the fund's priorities. Examples of this type are Norwest Venture Partners (NVP), and Canaan Partners.
Benchmark says that the decision not to raise a third Israel fund is due to changes in the firm's model, not in its investment priorities. The firm said, "The decision is an evolutionary process in Benchmark's investment strategy. The firm seeks exposure to outstanding investment opportunities in Israel through a California-based fund."
Published by Globes [online], Israel business news - www.globes-online.com - on January 12, 2010
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