Bronfman and Gillerman reexamine cleantech-focused Israel Opportunity Fund

The global financial crisis is affecting the Israel Opportunity Fund, the cleantech-focused VC fund founded last year by Canadian-American businessman Matthew Bronfman and former Israel Ambassador to the UN Dan Gillerman. The fund was established last fall to invest in Israel-related renewable energy and water technology companies.

The plan was to raise $100 million, with Bronfman Fisher Investment Ltd. committed to invest about 20% of the sum raised. However, today at the World Economic Forum in Davos, Gillerman told Globes, "We are reexamining both the size of the investment and the size of the fund."

Gillerman added. "The timing of our fund was undoubtedly unique. We founded it when it was already clear that the economic world was not what it was. What wasn't clear was the scale of its severity. The first round of fund raising from investors we carried out in London during one of the stormiest weeks of the global economy the week that Lehman Bros. collapsed."

Globes: Matthew Bronfman himself is not in the best of financial situations today?

Gillerman: "I rely on the power, stability, and strength of him and his family.

The money designated for the fund is from him or his family?

"Even I don't know."

How much money do you already have at your disposal to invest?

"I don't want to go into details."

You recently said that there has been a delay but will you complete fund raising by the end of 2009?

"As I have already said, we are reexamining the size of the investment and the size of the fund."

Have you implemented any investments yet?

"No. We have very many proposals both from large bodies and banks who have suggested companies that we should buy, sometimes as part of their activities as creditors."

Related Posts:

Israeli cleantech venture funds profiled in International Herald Tribune

Bronfman and Gillerman set up new cleantech fund

Israeli cleantech venture funds profiled in International Herald Tribune

A recent International Herald Tribune article reports on Israel's cleantech industry, focusing on the role played by specialized cleantech venture capital funds

Jack Levy, general partner at Israel Cleantech Ventures, which raised $75 million last year for its first fund, cites Israel's pool of Russian immigrants -- including many mechanical, chemical and metals engineers -- as a unique advantage for Israel.

Astorre Modena, an Italian-born physicist and co-founder of Terra Venture Partners, says native Israelis contribute the entrepreneurial spirit that complements the Russian technological expertise. Modena reports that Terra raised $25 million last year in a first round of financing.

Also cited in the article are Precede Technologies, which is backed by Pitango Venture Capital and Evergreen Venture Partners; Gemini Israel Funds; and the Israel Opportunity Fund, a new fund managed by Dan Gillerman and Matthew Bronfman.

Related Posts:

Bronfman and Gillerman set up new cleantech fund

Precede Technologies: the cleantech startup nursery

Israel Cleantech Ventures closes on $75 million fund

Terra VP raises $15 million, makes first investments

Bronfman and Gillerman set up new cleantech fund

Former Israeli ambassador to the United Nations Dan Gillerman and Canadian-American businessman Matthew Bronfman have set up a new fund in Israel to invest in alternative energy, water and agriculture, according to reports in Reuters and Globes.

The private equity fund is named the "Israel Opportunity Fund" and will invest in Israel and other regions. Gillerman, who will serve as chairman, explained that the fund would consider investments in "firms that operate in markets where Israel has advantages, such as Eastern Europe."

Bronfman is already an active investor in Israel, with stakes in Israel Discount Bank Ltd., Shufersal Ltd. and IKEA Israel.

Related Posts:

Bank Hapoalim and Hudson Clean Energy to establish cleantech fund