New and Exclusive Investment Opportunities in Israeli Startups
With Changes Made By the Israel Securities Authority, Angels Now Have Access to Previously Unavailable Advantages in Money Making Pursuits.
by Will Blesch
The following was written as a sponsored post for Smart Funding, Ltd. to be published in The Jerusalem Post.
2018 Was A Record-Breaking Year For Israeli Startup Funding. With a 17% increase from 2017 and a total of $6.7 billion invested, the Israeli startup investment market mirrored global trends. Now, in 2019 the picture is just as bright. In fact, Israeli startups have raised $1.55 billion in 128 deals in the first quarter of 2019!
A portion of this comes from what has been described as the most significant financial revolution in the investment world. This lucrative, disruptive change reached Israel in early 2018, when the Israel Security Authority brought the Offer Coordinator Regulations into effect. We call it CrowdInvesting, but we are talking about equity crowdfunding, of course. (This is a model that combines microfinancing and crowdsourcing. Individual angels invest funds in a business or project in exchange for equity.)
Investors in major Western nations have funded hundreds of millions of dollars through this model, and over $2.5 Billion has been invested worldwide. As the market in Israel grows, the opportunity for angels to become involved, to join a community, and to become a lead investor in individual, equity crowdfunding campaigns is explosive.
Yet how did the CrowdInvesting model impact the overall strategies employed by sophisticated investors until recently? The truth is, over the past three years, there has been an implosion of VC funding worldwide. For example, in the first quarter of 2019, investors pulled back and worldwide deal volume went down. Dollar volume dove even more compared to the same quarter just a year ago. Moreover, VCs are getting squeezed out of many of the best early-stage deals, while research shows equity crowdfunding investment continuing to grow throughout 2019 and the years to come, with no signs of stopping.
Sophisticated investors should have no problem seeing how this changes everything.
The CrowdInvesting model provides angels with the opportunity to become leaders in investment campaigns where they directly help Israeli startups that have gone through a rigorous screening and selection process. Only companies that are overseen by the Israel Securities Authority and that have the best chances of overall success (along with a lucrative ROI) are chosen. Moreover, this model provides angels with particular benefits, such as getting in early and becoming part of a pre-campaign designed only for angels. Pre-campaigns are limited to thirty-five investors, and allow a minimum investment amount of 150,000 NIS depending on company targets. (Investments can normally range from 200,000 NIS – 5 Million NIS.)
Angels will find that the CrowdInvesting model is fully transparent, providing them with an easy way to see important documents such as a company’s business plan, legal documents, and financial information all in one place.
You see, knowledgeable angels are leaving behind old paradigms in favor of becoming enthusiastic brand ambassadors for the companies they invest in through equity CrowdInvesting. Angels themselves help drive up these companies’ value and share significantly in profits when the campaign ends successfully. Most importantly, however, angels will find themselves secure in the knowledge that they are boosting job growth, impacting and shaping the overall Israeli economy, all while cementing Israel’s title as “The Startup Nation.”
Here’s what’s incredible about the whole thing … and something angels should not forget.
- The totality of all equity crowdfunding worldwide stands at $2.5 billion.
- Forbes Magazine projected that equity crowdfunding may very well surpass standard venture capital models in volume by 2020.
- The World Bank sees the crowdfunding market as a whole continuing to double annually, hitting $90 billion in volume by 2020.
The bottom line here, is that equity crowdfunding is a viable alternative to typical venture capital models, and has totally shaken the startup funding process in just a few short years.
That is as true now for Israel, as it is for the rest of the world.
Individuals interested in learning more about equity crowdfunding opportunities should act while they have the chance by getting in touch with Smart Funding, Ltd. which raises capital for private companies and ventures in Israel. (Smart Funding, Ltd. will be going live in June 2019. Now is the time to get in touch, and get involved as a leader in one of Smart Funding’s upcoming CrowdInvesting campaigns!)
Investigate them – and learn more about the opportunities available to you within various industries, such as real estate, education, medicine, technology, and much more. Get in touch now and get new and exclusive offers delivered right to your inbox.
Opportunities like this go quickly. Don’t let someone else make the investment that you should make.
CONTACT SMART FUNDING HERE
(CONTACT US FORM)
SmartFunding ltd. raises capital and provides business development services for private companies and ventures in Israel.
Transparency is a key, fundamental principle with us. The companies we choose to work with undergo a strict inspection process in order to reduce risk for the investors within our community. We believe in ensuring reliable and secure investments.
We do that by thoroughly screening and filtering the companies we recruit. From the receipt of materials such as business plans, registered patents, share agreements, as well as partner updates from board meetings, and more …
Investors are provided essential information from beginning to end.
