Bezeq to Make First-Ever $40 Mln Investment in Venture Capital Funds

Bezeq's board of directors today approved a $40 million investment in venture capital funds. This is the first time that Bezeq invests in this sector.

Bezeq's management suggested spreading the investment among three funds operating in the communications sector and in related sectors:

• Setting up a new fund involving Bezeq and 2-3 strategic partners from the communications sector. Bezeq has already negotiated to set up such a fund with AT&T, KHI (a Taiwanese investment company), Comverse, BT, and others. The fund's overall capital is planned at $50-70 million, of which Bezeq will provide 25-33%, at an investment of $15-25 million.

• Joining the EuroFund 2000, at an investment of $7.5 million (of an overall financing round of $50 million for the fund). This fund specializes in investment in the communications sector.

• Joining the BRM fund, which will specialize in investing in Internet infrastructures. Bezeq will invest $7.5 million in the fund's planned financing round for raising $400-500 million.

  Published by Israel's Business Arena on 14 February, 2000