T.I.F. Ventures Purchases the Misgav and Mofet B’Yehuda Incubators for $6 Million
12 August 2007
PRESS RELEASE
The Israeli investment firm T.I.F. Ventures announced today that it has purchased control of the Misgav Venture Accelerator and the Mofet B’Yehuda Innovation Accelerator for $6 million, which it raised from investors. T.I.F. Ventures was founded by the owners of the Trendlines Group, Todd Dollinger and Steve Rhodes, and attorney Ehud Huberman, a board member and one of the first investors in the Misgav Venture Accelerator more than 14 years ago.
T.I.F. Ventures raised $6 million for the privatization from several foreign and Israeli investors including:
- Yorkville Advisors, an American investment fund that manages over $800 million, is one of the leading investors in the group. Its portfolio includes companies specializing in health care, energy, and homeland security. Three months ago, Yorkville Advisors made a strategic decision to enter the Israeli market. The owners of the fund say they plan to invest in the incubator companies; they have already submitted a term sheet for an $8 million investment into one incubator company and are considering two additional investments.
- Another significant investor is Lachman Goldman Ventures, which invests in young high-tech firms, especially in software and communications. Lachman Goldman Ventures had previously invested in the Trendlines Israel Fund.
- Two prominent Israeli families have each invested about $1 million. In addition, Trendlines Israel Fund, which initiated the privatization of the Misgav Technology Center some three years ago, invested $500,000. The fund is owned by the Trendlines Group, which specializes in international business development.
According to Todd Dollinger, the CEO and one of the founders of T.I.F. Ventures: “We have built a ‘dream team,’ a company with abilities that include business development and investment banking. The company combines abilities in the Israeli, American, and European capital markets. Our goal is to establish 10–14 successful companies per year. We will provide them with a supportive environment and infrastructure to help them achieve the goals. Our investors have already said that they plan to invest in the incubator companies directly and to make their areas of expertise available to them. Approximately $500,000–$600,000 will be invested in each company. In addition to the direct investments, we will offer new companies a package of services worth some $50,000, including branding, a business plan, establishment of a website, and additional services.” The Misgav Venture Accelerator was founded as the Misgav Technology Center by the Misgav Regional Council in 1992. Its specialties include medical devices, pharmaceuticals, and biotechnology. It was partially privatized three years ago by the Trendlines Israel Fund, part of the Trendlines Group, which invested $2 million. The incubator has 11 active companies and 12 graduate companies, including ETView and Dune Medical Devices, which received the European Technology Innovation of the Year Award for 2007 from the international consulting firm Frost & Sullivan. In 2006 the incubator's companies raised over $19 million. The CEO of the Misgav Venture Accelerator is Steve Rhodes. The Mofet B’Yehuda Innovation Accelerator was founded by the Kiryat Arba, Hebron Hills, Gush Etzion, and Efrat regional councils in 1991. It specializes in cleantech, software, and medical devices. The incubator has seven active companies, including eBIZ.mobility, which recently raised approximately $1 million. Two additional companies are currently being formed. The CEO of the Mofet B’Yehuda Innovation Accelerator is Yossi Ron.
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