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Financing Opportunities
There are multiple financing sources available to early-stage Israeli life science
companies. While obtaining funding is always a challenge, for the most part promising
ideas succeed in finding financial support.
Accelerators, Incubators, Angels and Accredited Investor Clubs
There are numerous incubators and accelerators in Israel, and many are active in the
medtech and life science space. Angel investing is highly developed in Israel and today
angels are often successful serial entrepreneurs who bring added value to companies.
There are also on-line accredited investor portals, such as Our Crowd, which allow
investors accredited in their jurisdiction of residence to make on-line investments
of as little as US$10,000 in early stage companies that have been screened by Our
Crowd’s team.
Venture Capital
A large number of Israeli and foreign (primarily Silicon Valley) venture capital funds
are active in Israel, and many of them invest in life science companies. OrbiMed, a
significant VC fund based in the U.S., has now established its second fund in Israel,
focusing on life science investments in both start-ups and more mature companies. In
addition, there has been a significant increase in interest by Chinese VC funds in the
medtech and life science sectors in Israel – both in terms of making investments and
obtaining access to Israeli technology in these areas.
Public Markets
If Israeli life science companies are able to, they aim for NASDAQ. Those that cannot,
choose the Tel Aviv Stock Exchange. These days, the public markets are closed to all
but the most promising and profitable life science companies, and public money is
generally not a major source of financing.
Acquisition
A far more likely fate of promising life science and medtech companies in Israel is
acquisition by global pharma and medtech companies. Many of the “big names” in
these areas have made acquisitions in Israel in recent years. These include Medtronic,
Boston Scientific, Johnson & Johnson, Kyphon, GE Healthcare, Essilor, Philips
Healthcare, Covidien and Stryker. Merck, Novartis and BioGen are also active,in Israel.
Once acquired, the companies often remain active in Israel, becoming a source of
trained life science managers and professionals.
Opportunities and Future Growth
Actively involved in the life science and medtech ecosystem, we see the vibrancy and
robust health of this sector through the eyes of our clients, numerous promising early-
stage and maturing companies, as well as global companies seeking opportunities
in these fields in Israel. There is no doubt that life science and medtech ventures
are a major part of the Israeli high-tech industry, and will continue to contribute
to the incredible growth of Israel, the “Start-up Nation,” while bringing meaningful
improvements to the lives of millions of people around the world.
Many global life science companies have established local R&D centers in
Israel, in order to access local engineering and medical talent.