Sources inform ''Globes'' that Pangaea Capital Partners, a new venture capital fund, is seeking to raise $75 million. The firm was founded by Evergreen Venture Partners general partner Adi Gan and principal Idan Mor, and former Giza Venture Capital partner Ori Israeli.
Pangaea Capital was unavailable for a response.
The three men are trying to raise capital in bleak times, both in Israel and in the US. Moreover, even though they have strong track records in Israeli high tech and venture capital, large investment institutions are avoiding new funds, and consider the trio as new tyros in the field.
Gan has been a partner at Evergreen since 1997, focusing on optical communications and communications infrastructure companies. He served as an R&D officer in the IDF, and was responsible for the management of multi-disciplinary R&D projects. He later joined software services company Tescom as VP for its Real-Time Systems Division. He has been Evergreen's representative on the board of Radvision Ltd. (Nasdaq: RVSN; TASE: RVSN) and Memscap SA (Euronext: MENS), and is currently a director of active portfolio companies, including Amimon Ltd., Flash Networks Inc., PeerApp Ltd., Optimal Test Ltd., wind energy developer Pentalum Ltd., and Siverge Ltd., Siklu Ltd.
Mor joined Evergreen in 2006, after serving as a senior analyst at Qwest Communications International Inc.
Evergreen's partners have decided not to raise a new fund, effectively liquidating the firm. Gan and Mor will continue to serve on the boards of Evergreen's portfolio companies. Two other partners, Boaz Dinte and Erez Shachar, are also seeking to raise capital for a new firm.
Israeli left Giza a few months ago, where he focused on communications, Intenet, software, and semiconductor companies.
Severe capital shortage
The severe shortage in Israeli venture capital for investment in new companies is well known. According to Deloitte, the number of active Israeli venture capital funds fell in ten years from 44 to 20 at the end of 2010. The situation worsened as hopes for exits this year have evaporated with the deteriorating global economic climate.
Longstanding venture capital funds, such as Israel Seed Partners, Delta Ventures Concord Ventures, Formula Ventures, and Walden Israel stopped operating years ago, and others are winding down. Only a few firms are trying to raise new funds, such as Pitango Venture Capital and Magma Venture Partners.
In the past year, new venture capital funds, operating along new business models, have been cropping up. They manage small fund and make tiny investments in early-stage companies, mostly Internet companies. Examples are Lool Ventures and Glilot Capital Partners.
Published by Globes [online], Israel business news - www.globes-online.com - on September 6, 2011
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