YL Ventures GP Ltd., run by managing partner Yoav Andrew Leitersdorf, today announced that it has raised $27.5 million for its second fund, YLV II. The first fund was launched in 2008 with $30 million.
YL Ventures claims that it originally planned to raise $25 million for its second fund, but increased the amount by 10%, because it was over-subscribed. It adds that the fundraising took just three weeks, which might spark optimism among micro funds that will need to raise capital in the coming year.
YLV II will also see personnel changes: associate Ofer Schreiber, who supports operations in Israel, will be promoted to partner, alongside John Quigly, and Leitersdorf.
YL Ventures focuses on early-stage Israeli start-ups, with an emphasis on advanced technologies and enterprise solutions. YLV II will also operate out of the US West Coast. It will invest $1-2 million in eight companies over the next three years, with the balance of the fund slated for follow-on investments.
YL Ventures has invested in six companies to date. The companies are engaged in e-commerce infrastructure, security, business data analysis, and improving Internet access. It has had one exit: AcceloWeb, which was acquired by Limelight Inc. (Nasdaq: LLNW) for $25 million in 2011.
YL Ventures plans to expand its focus to companies developing software as a service (SaaS) solutions, a model that has become increasingly popular among Israeli software companies in the enterprise market. The advantage of this model, which is sometimes known as "inside sales", is that when successful, it removes from the equation the need to run salespeople around the world and to manage complex operations from Israel - considered the weak link of Israeli high tech - enabling companies to boost their operating profit margin.
Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2013
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