India's Tata Group unit Tata Industries Ltd. will invest up to $5 million in Ramot at Tel Aviv University's Momentum Fund. Tata Group is reportedly investing $2.5 million in Momentum Fund's first closing of $5 million, out of the $20 million it plans to raise. Momentum Fund will invest in ventures based on work by Tel Aviv University researchers.
Tata Group, the world's largest Indian company, has an annual turnover of $100 billion, which it aims to increase to $500 billion within a few years. The investment in Israel is negligible compared with the scale of its operations, but is still significant as this is the company's first investment in Israel.
"This is our first major investment in Israel," said Tata Industries CEO Rameshwar Jamwal. "This is our attempt to scout Israeli technology more deeply. This allows us over a period of time to show our commitment to Israel but we are interested in doing more."
The parties will reportedly have a unique collaboration model. Momentum Fund operates in three sectors: engineering the exact science; healthcare; and cleantech. For each sector, an advisory committee comprising a Tata Group executive and Israeli and foreign experts will be set up. The committee will choose the ventures that will join the fund and will direct their development. When it is decided to commercialize a technology, Tata Group will have the right of first refusal, valid for two weeks, to buy it, and the right to hold negotiations for two months. Afterwards, Ramot will have the right to approach other companies.
Over the past few months, Tata Group representatives have met more than 70 Tel Aviv University researchers to discuss the possible developments emerging from their laboratories. Tata Group's investment indicates that it has found a range of relevant projects.
Ramot will establish a subsidiary to manage the Momentum Fund. Ramot CEO Shlomo Nimrodi will also manage the subsidiary. Nimrodi, a former CEO of Indigo and Vizrt Ltd. (XETRA: VIZ; OBX:VIZ), said, "Ramot has 600 registered patent families, half of which were registered in just the past five years. This achievement is also expressed by the 100 new researchers hired by the university in recent years from the world's top universities."
Nimrodi said that $150 million a year was invested in Tel Aviv University applied projects, from which Momentum Fund's companies will come.
Ramot's revenue is NIS 70 million a year. Its commercialized products include flash memory processors used by SanDisk Corporation (Nasdaq:SNDK); sleep medication Circadin, produced by Neurim Pharmaceuticals Ltd.; Lipimix treatment for dry eye syndrome; and the technology underpinning the treatment for ALS of Brainstorm Cell Therapeutics Ltd. (Bulletin Board:BCLI).
"The NIS 70 million revenue is low, but it means that we have somewhere to go," Nimrodi said. "The Weizmann Institute of Science earns $300 million in some years."
Tel Aviv University and Ramot chairman Dr. Giora Yaron said, "We want to create at Tel Aviv University collaboration with industry on the basis of the model between Stanford University and Silicon Valley."
Published by Globes [online], Israel business news - www.globes-online.com - on April 29, 2013
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