US VC fund Singularity to increase Israel investments

Despite the tech slowdown, US venture capital fund Singularity is to increase investments in Israeli tech companies and startups, it was revealed during a visit to Israel by the Tuscon, Arizona-based fund’s managing partner Sudeep, Mishra. Singularity’s tech fund totals $25 million and the aim is to invest up to $10 million in Israel.

Mishra said, “The fund is interested in investing in pre-seed and seed financing rounds of early stage tech companies and acting as a bridge for them to US markets. The visit to Israel has been enlightening for me and the fund. We had the opportunity not only to meet inspiring entrepreneurs, but also to meet senior leaders of the Israeli ecosystem.”

Singularity Capital has $2 billion in assets under management. In 2019, the fund launched activities in Israel focusing on early stage startups. The fund has usually invested up to $500,000 in software solutions that have already proven their effectiveness.

Mishra’s visit was arranged through Singularity’s connection with the BDO accounting firm. The visit aimed to expose the tech fund to the dozens of Israeli startups in various stages that work with BDO. The visit was organized and led by Tomer Nitzan, head of BDO’s US-Israel desk, BDO business development manager Noya Rozenberg, and Singularity Capital chief investment officer Nitsan Naidorf.

During the visit, BDO together with Valley Bank and patent attorneys and law firm Pearl Cohen, organized an opportunity for entrepreneurs and venture capital funds and investors to meet Mishra at a bar in Tel Aviv.

Nitzan said, “Volatility in the markets and the tech market in particular have caused a fall in value of existing companies and have affected the valuation process for early stage companies. In other words, early stage companies trying to raise funds must raise according to lower values than they are used to.

“There are those who see this as a regression in the market but that doesn’t mean that there aren’t investments and activities. Companies that are raising capital must adapt themselves to the new rules of the game because halting fund raising can indicate a lack of activity and in the end these companies will tread water and get left behind. This is also relevant for investors. Whoever sits on the fence will miss opportunities.”

Published by Globes, Israel business news – en.globes.co.il – on December 28, 2022.

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