Exclusive: Vertex Venture fourth Israel fund oversubscribed by 50%; set for $150m final close

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Singapore state-fund Temasek Holdings wholly owned investment arm – Vertex Venture Holdings’ fourth Israel fund has been oversubscribed by as much as 50%, and is set to see its final close at $150 million, a top executive with the venture capital firm said.

“The fund (was) meant to be closed at $100 million but was oversubscribed, and is closing these days with $150 million,” Yoram Oron, founder and general partner of Vertex Venture Capital, said in an email response to DEALSTREETASIA.

In October, this portal had first reported that the VC arm of Temasek was close to hitting the $120 million target for its fourth Israel fund. That report, which had quoted the firm’s group president and chief executive Chua Kee Lock had also added that Vertex Venture Holdings had hit the final close of its first US-focussed fund at a little less than $150 million.

The development comes even as Temasek is set to close a new $150-million fund to invest in mature Israeli high-tech companies. This portal had reported last week that Temasek Holdings would serve as the anchor investor, with other investors joining the fund, that would be called Red Dot fund, a nickname for the Southeast Asian city-state.

RelatedTemasek launching new $150m ‘Red Dot’ fund for mature Israeli technology startups

This vehicle will invest between $10 million and $15 million in each company in its portfolio.

This is different from the Israel funds raised by Vertex Venture Holdings.

Oram will also be the chairman of Temasek’s new Red Dot vehicle, while other partners in the fund will be Tzvika Nagan, a former executive at Bank Hapoalim in charge of information systems, and Yaniv Stern, a former McKinsey & Company consultant.

“Red Dot is a Temasek Fund and is a sister fund to Vertex Israel. Yes the Red Dot fund is different from Vertex. Red Dot is a growth fund focusing on maturing and growing Israeli technology companies. Vertex Ventures Israel is one of the pillars of the Vertex Group’s network of Funds.  In addition to Vertex Ventures Israel, Vertex Group has separate funds focusing on information technology opportunities in China, Silicon Valley, India and South East Asia, and global healthcare opportunities.  The funds and GPs across the network work closely together to support our entrepreneurs as they scale their companies globally,” Oram said.

Currently, Oron sits on the boards of Vertex portfolio companies Correlsense, Cyber-Ark, and Heptagon.

Last year, Vertex Venture Holdings also closed a $200 million Southeast Asia and India focussed fund.

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