AquAgro Fund acquires Kinrot water incubator

AguAgro Fund LP has acquired water technology incubator Kinrot Technology Ventures from Canada's Stern Partners Inc. in a share-swap deal, reports Globes.

Stern Partners, run by president Ronald Stern, will reportedly get a stake in AquAgro, an Israeli venture capital fund focused on innovative water and agriculture technologies, although terms of the deal were not disclosed.

Ministry of Industry, Trade and Labor regulations governing Israel's Technological Incubators Program require that AquAgro inject at least $3 million into Kinrot over three years.

Stern Partners ran Kinrot for the last three years following the incubator's privatization. Under the leadership of CEO Assaf Barnea, Kinrot has invested in a portfolio of 11 cleantech start-ups and entered into strategic partnership agreements with Israel's Mekorot, the Los Angeles Department of Water and Power, and the Milwaukee 7 Water Council.

B. Gaon Holdings Ltd. controls AquAgro through Gaon Agro Industries Ltd.. Gaon Holdings CEO and Gaon Agro chairman Shai Preminger told Globes, "Gaon Holdings is one of the players that, a decade ago, inscribed on its flag investment in the water and cleantech industries, through Gaon Agro. The acquisition of Kinrot turns AquAgro, which we own, into the leading Israeli investor in the water and cleantech technologies."

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Kinrot signs cooperation agreement with California water incubator

The Kinrot Incubator recently signed a cooperation agreement with a California water technology incubator: the Claude Laval Water and Energy Technology (WET) Incubator.

WET is based on California State University's Fresno campus. Established in 2007, WET is a $5 million partnership between Fresno State, the International Center for Water Technology, and the Central Valley Business Incubator.

In an interview with Globes, Kinarot CEO Assaf Barnea described the cooperation agreement between Kinrot and WET. "The cooperation between us is on three levels: joint research, joint development based on innovative technology, and marketing water technology. The significance for us is the joint marketing of the products. The American incubator is like an industrial park, and the firms in our portfolio that want to meet other firms will find partners willing to listen there. We'll join in meeting potential investors. The water technology market is very conservative, and you have to form close ties in order to make sales."

Vancouver-based Stern Partners acquired Kinrot in 2006.

In June, Kinarot signed an agreement with the city of Los Angeles on water technology. The agreement will allow Israeli start-ups to use Los Angeles Department of Water & Power facilities for pilot projects.

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Cleantech attracts foreign investment

"From cutting-edge geothermal power deep underground to wind turbines and solar panels capturing energy from the sky above, foreign investors are pouring money into Israel's growing clean tech sector."

This is the opening paragraph in an article recently published by the Jewish Journal of Los Angeles.

The article provides an overview of Israel's cleantech sector and focuses on the importance of the United States, both as an export market for clean technologies and a source of funds for cleantech VCs and startups.

It includes quotes from Michael Granoff, President of NY-based Maniv Energy Capital and an investor in Project Better Place; David Rosenblatt, Vice Chairman of the Arava Power Company; Glen Schwaber, Partner at Israel Cleantech Ventures; Stacy Schusterman, CEO of the Samson Investment Co. and a major Jewish philanthropist; Assaf Barnea, CEO of the Kinrot Water Technology Incubator; and Jonathan Shapira, the author of this blog.

If you want to meet Assaf Barnea and learn more about water technologies in Israel, please sign up for the Cleantech Israel business network and attend our next event on July 29.

Los Angeles and Israel to cooperate on water research

"Globes" reports that Los Angeles Mayor Antonio Villaraigosa has signed a cooperation agreement with the Kinrot Incubator, which invests in water technologies. Villaraigosa is currently in Israel with a delegation of top municipal officials, including Los Angeles Department of Water & Power General Manager H. David Nahai.

This seems like an excellent example of how cleantech -- in this case, water technology -- is creating a new paradigm for U.S.-Israel relations. Rather than merely planting a symbolic tree or making charitable donations in Israel, Villaraigosa's delegation will return home with newfound access to Israeli technologies that can directly benefit L.A. residents. This is a positive development both for Israeli water startups and the people of L.A., and it will help strengthen the U.S.-Israel relationship.

(UPDATE: Check out Villaraigosa's op-ed about how L.A. will benefit from its partnership with Israel.)

Villaraigosa told "Globes", "Israel is a global leader in high-tech and environmental solutions. As such, we intend to utilize the know-how of our Israeli friends to deal with the challenges we face from drought and global warming."

The cooperation agreement with Kinrot will reportedly enable Israeli startups to use Los Angeles Department of Water & Power (DWP) facilities for pilot projects. DWP will then install suitable Israeli technologies in its facilities. The agreement will lead to cooperation in water R&D ventures and academic studies, which will encompass the University of California Los Angeles (UCLA). The Los Angeles municipality also intends to learn from Kinrot how to set up a water technology incubator, which it plans to establish on a 28-acre site in the city.

Congratulations to the Kinrot Incubator and its CEO Assaf Barnea.

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U.S. Army venture fund looks to Israel for water technologies

Christopher Fountas, a General Partner at Arsenal Venture Partners, was recently in Israel to examine the potential for investment in early-stage water technology companies.

Arsenal Venture Partners is a leading venture capital firm focused on the intersection of the commercial and defense markets. AVP manages an early-stage venture capital fund (OnPoint Technologies), and a seed-stage venture fund (MILCOM Technologies). It already has an extensive cleantech portfolio and co-invests with many of the leading venture capital funds and corporate investors in the sector.

According to a report in "Globes", Fountas was invited to Israel by Dr. Orna Berry, a venture partner at Gemini Israel Funds, as well as Chairperson of the Israel Venture Association and former Chief Scientist of the Ministry of Industry and Trade; and Assaf Barnea, CEO of the Kinrot Water Technology Incubator.

Fountas said, "We manage investments in technologies for the US Army to meet needs that arise in wartime, such as during operations in Iraq, and for the government and industrial markets. We've come to Israel with the understanding that it’s a global leader in water technologies."

Joining Fountas on his trip to Israel was Melissa Meeker, a governing board member of the South Florida Water Management District (SFWFD). According to Meeker, Florida is reviewing the establishment of a state venture capital fund for cleantech.

During their visit, Fountas and Meeker met with Mekorot - the Israel National Water Company; executives at venture capital funds including Gemini, Evergreen Venture Partners, and Israel Cleantech Ventures; and Booky Oren, President of the Arison Water Initiative.

Summarizing his visit to Israel, Fountas said, "The water technologies that generally interest us are those that are synergetic to US Army and federal government needs.... All the water sectors relevant to us for investment are found here, from water security through water treatment and management, to desalination."

Kinrot Incubator

Kinrot, an incubator focused on water technologies, has named Assaf Barnea as its new CEO according to a Globes report. Barnea recently served as VP of Business Development at the Mekorot National Water Company and oversaw the establishment of Mekorot's own incubator -- the WaTech Entrepreneurship and Partnership Center for Water Technologies.

Founded in 1993 as part of the Israeli technological incubators program, Kinrot was privatized last year. Based in the Jordan Valley, it has several portfolio companies that operate in the water sector.