Israeli venture capital firm Magma Venture Partners, which focuses on early-stage technology and has $500 million under management, has announced the completion of fundraising for Magma Venture Capital IV with $150 million in new committed capital. Magma says that the fund received strong interest and was oversubscribed within weeks of announcement. This fund comes on the heels of a third fund raised in early 2012.
Fund IV will continue Magma’s strategy and investment focus of investing across areas of information, communication technology including Mobile, Cloud, New media, SaaS, e-commerce, UGC (User Generated Content) and Cyber Security. The fund plans to invest exclusively with Israeli entrepreneurs, primarily in Israeli based technology teams, in their earlier stages of development.
The new fund continues the predecessor fund’s focus and activities and is expected to begin investing in early 2015 after Magma III reaches investment capacity. The fund expects to invest in seed and series A financing rounds, in approximately 25-30 opportunities with typical investments of $0.5 6.0 million.
Magma Venture Partners was founded in 1999. Among portfolio companies to have made successful exits are Waze, acquired by Google (NASDAQ: GOOG); Onavo acquired by Facebook (NASDAQ: FB); Provigent, acquired by Broadcom (NASDAQ: BRCM); Wintegra, acquired by PMC-Sierra (NASDAQ: PMCS); and DesignArt, acquired by Qualcomm (NASDAQ: QCOM). Other notable investments by Magma are in Hola, Valens, Magisto, TabTale, Appsflyer and CorePhotonics.
Magma says that Magma IV received strong support in the oversubscribed fund from existing Limited Partners and also attracted quality first-time investors. Co-Managing Partner Yahal Zilka said, “We are very pleased with the interest, trust and support of leading Limited Partners (LP’s) in Magma and its activities with Israeli entrepreneurs. We are fortunate to partner with the most sophisticated global technology investors from the USA, Europe, Asia and Israel. The strong LP interest provided for an expedited and swift fund raising process during the mid to late summer time frame.”
Published by Globes [online], Israel business news - www.globes-online.com - on September 29, 2014
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