New fund to take Israeli startups for Nasdaq listing

A new investment fund co-managed by Intel Corp‘s former chief product officer is aiming to raise $300 million to invest in Israeli tech companies with the goal of eventually listing them on the Nasdaq stock exchange.

Eucalyptus Growth Capital plans to raise an initial $100-$140 million in the first half of 2016 from investors in the United States, Europe and Asia.

“The real dilemma for the Israeli tech sector is that while being extremely successful and important for the Israeli economy it does not create large companies. The tendency is for most companies to sell themselves off,” David Perlmutter, managing partner at Eucalyptus, told Reuters.

Perlmutter was chief product officer at Intel from 2009 to 2013. His partners at Eucalyptus are Rami Hadar, former chief executive at Allot Communications, and Eldad Tamir, chief executive of the Tamir Fishman investment house.

Tamir said the fund was looking at six companies with sales of over $30 million and noted companies seeking an initial public offering (IPO) need about $100 million in sales. Creating bigger markets for their products requires substantial funds and start-ups initially use most of their money from sales for R&D.

“We want to be the place to go to when you want a big check. If you want $6-$10 million go to a venture capital fund,” Tamir said, noting that until now only a few private equity funds such as KKR have been making larger investments.

Entrepreneurs that have already sold a company are often interested in building bigger firms with their second or third start-up, Tamir said.

Sectors of interest include enterprise software, e-commerce, video and the internet of things, he added.

Eucalyptus’ advisory board includes former Intel Chief Executive Paul Otellini, former president of AMD Atiq Raza, and Mellanox CEO Eyal Waldman.

Also read: Singapore-listed Israeli group Trendlines seeks to operate agri-foodtech incubator in West Bank

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Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.