Tel Aviv University venture capital fund TAU Ventures has announced raising a second fund of $50 million for investments in startups, with the opportunity to grow the fund to $70 million.
TAU Ventures invests in early stage startups, often investing the initial capital in the company or after angel investment. This is a stage where there is a shortage in the industry. The fund will invest in 15 to 25 companies founded by Israeli entrepreneurs, with investment amounts up to $1 million per venture as a first investment.
All investors from the previous fund have reinvested in the current fund. Both funds were led by Chartered Group, which brings together many leading entities from Japan, as well as new investors, including family offices in the US, Canada and Europe.
TAU Ventures was founded in 2018 by managing partner Nimrod Cohen, together with Tel Aviv University.
Tel Aviv University alumni are ranked 5th globally as top university producing VC backed entrepreneurs and 8th in the world in creating unicorn companies.
TAU Ventures first fund of $20 million began operating in 2018 and has made 18 investments including: SWIMM, Xtend, Gaviti, MyAir, Castor, andMedorion. The first fund IRR is in the top 10% compared to all US funds from the same size and vintage.
Cohen said, "We are in a period where a lot of money is circulating in the market. However, this can be misleading as there is still a shortage of investors in the early stages in Israel. More investors are operating in A or post-seed stages. They do not talk to entrepreneurs in the initial stages and rather want to see a product that has already reached the market. We are covering this critical stage enabling new companies to emerge."
Tel Aviv University president Ariel Porat added, "As part of Tel Aviv University’s strategic plan, we have made it a central goal to strengthen ties with industry here as well as promoting an international and multidisciplinary campus. TAU Ventures provides for entrepreneurs a platform with significant opportunities in innovation and making academic progress beyond the campus boundaries. It enables students to integrate practical experience with leading startups during their studies, and at the same time, it enables entrepreneurs to enjoy the diverse qualities of the campus."
Published by Globes, Israel business news - en.globes.co.il - on November 29, 2021.
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