TAU Ventures, with initial commitments of $20m, marks the first time that such a fund is being launched in Israel.
Tel Aviv University today launched a venture fund called TAU Ventures with approximately $20m in initial commitments from investment fund Chartered HighTech and several US and Canada-based investors.
Bahzad Kianmahd, chairman and chief executive of commercial financing firm Maxim Commercial Capital, is the only investor to have been identified out of the North American backers.
The initiative marks the first time that such a vehicle is being launched in Israel.
The fund will primarily focus on student and alumni startups as well as the wider Tel Aviv ecosystem, and will offer portfolio companies access to the university’s resources such as laboratories and network of partners.
TAU Ventures is set to invest the capital over seven years. It will aim to avoid the pharmaceutical and cleantech sectors, which require longer-term commitments and specific knowledge.
The fund will also operate a variety of incubation programs in collaboration with strategic partners – the first will be run in partnership with IT services and products provider NEC.
Nimrod Cohen, venture partner at investment firm Plus Ventures, has been hired as managing partner for TAU Ventures, which will operate out of new co-working space near the Tel Aviv University campus.
Cohen said: “The advantage of the fund will be identifying unique opportunities in early stages. TAU Ventures will also be able to offer added value to the entrepreneurs among the students and our alumni of TAU, via variety of resources surrounding the university.
“The fund will enjoy the wide spectrum of knowledge and support of the industry given the important position TAU holds.”
