Alcatel will invest half the sum, raising the other half from additional investors.
French company Alcatel, one of the world’s largest telecoms, is setting up a fund with Israeli incubator Runway, named the Runway Telecommunications Fund for an expected $14 million. Alcatel will invest half the sum, raising the other half from additional investors. The fund will be used for investments in start-ups operating in the Runway incubator.
Runway, founded by CEO Shlomo Touboul, is a technology incubator operating in the telecommunications field. Its goal is to accompany start-ups from the earliest idea stages up to the sale of products.
According to Touboul, the incubator places better resources than money at the disposal of start-ups looking for seed financing. Touboul noted that the incubator gives start-ups immediate access to Alcatel’s infrastructures and its customers, which offer them their installation facilities for testing the products.
Alcatel is no stranger to incubators. The company has three similar projects around the world. “Globes” has learned that the company made similar moves with France Telecom, through which it invested in nine companies. One of the companies was sold, another issued and a third is already mature enough for issuing.
Published by Israel's Business Arena on 22 February, 2001