Israeli insurtech Sure-Tech Investments R&D Partnership plans to raise up to NIS 36 million in an Initial Public Offering (IPO) on the Tel Aviv Stock Exchange. The Partnership is committed to purchasing 20% of the final offering that will be set - at least NIS 25 million and it will invest between $1 million and $4 million in each target insurtech company.
Sure-Tech Partnership is seeking to take advantage of the major boom in the technological revolution in the worlds of finance and insurance in Israel, in which Israeli startup companies like Lemonade, Hippo and Next have become unicorns, within four to five years of their establishment. Sure-Tech has already invested in two companies, which it estimates have the potential to create a big change in the insurance market. This is as part of its strategy of investing in companies that have completed the technological development stage and are on the verge of a business breakthrough and the ability to generate major revenue.
The Partnership has invested $2 million in: Vesttoo, which based on artificial intelligence (AI) can objectively and optimally estimate the risks of an insurance portfolio and price it for the capital market, as an alternative to secondary insurance; and $2 million GEOX, which has developed breakthrough technology based on AI and Machine Vision for insuring properties. The two companies have proven technologies and revenue, from agreements with insurance and international finance players.
Among the shareholders of the General Partnership are Dani Naveh, who will serve as Chairman and Hof Zim is from the Adi Zim Group, Lior Tamar; and the Together Fund, managed by Shuki Cohen Sharet.
The IPO will be led by R.E. Underwriting and Advs. Itay Brafman and Adi Ron of the Dr. Zeev Holender Law Offices, and accounting firm Deloitte.
The Partnership's CEO will be Ran Tzror, a qualified lawyer and accountant, and an experienced investment manager who has served in the past as Director, Assistant to the President and CEO of Teva Pharmaceuticals as well as Director of Post Mergers Integration at Teva. CFO and VP Business Development will be Doron Gedalyahu, a qualified accountant, who founded the fintech and insurtech community FINovation and was Supervisor in the Financial Institutions Supervision Department in the Israel Capital Market, Insurance and Savings Authority. Technology Consultant will be Avichay Karpel, who served as Bank Leumi CTO and has 20 years of experience in leading innovative projects in the IDF 8200 Intelligence Unit. The partnership brings with it extra added value from Gopi Rangan, a consultant specializing in investments in insurtech companies in Silicon Valley.
The Partnership will not to charge management fees in the first year and will cut success fees from exits to 14%, while the average fee on the market is 20% or more.
Published by Globes, Israel business news - en.globes.co.il - on April 21, 2021
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