Home Business Eyal Ofer invests $400 million in second venture capital fund

Eyal Ofer invests $400 million in second venture capital fund

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Eyal Ofer, chairman of Ofer Global, a majority shareholder in Mizrahi Tefahot Bank and a shareholder in cruise company Royal Caribbean Group, is taking advantage of the market downturn to invest in relatively early-stage technology companies. Ofer invested $400 million of his personal capital in the second fund of his venture capital firm OGTech, bringing his commitment to more than $500 million. Offer, son of Sammy Offer and brother of Idan, is in the second 1% of Forbes magazine’s richest list, with an estimated personal fortune of $13.6 billion.

Ofer created the first fund in 2017 with a capital of $100 million, which gave him the first place in the world of technology. The fund later grew to $150 million to meet the need for follow-on investments in portfolio companies. The fund’s managing partners are Offer’s son, David Offer, along with Ziv Kopp and Roy Aron, both veterans of the venture capital industry. So far, they have invested in more than 20 late-stage startups.

So far, the fund has made fairly modest exits, such as Ensilo, Indegy and MyCheck, each of which was sold for tens of millions of dollars, as well as the placement of Arbe Robotics, but it holds several fast-growing companies, such as employee management applications company Connecteam, automatic video shortening company WSC Sports and fintech platforms LendBuzz and BlueVine. In any case, the firm admits that five exits from the first fund have already returned more than half of the original investment. He also reveals that he has four companies with annual revenue of $100 million in 2022.

Fund II will continue to focus on early-stage startups that have a product and are in early sales. One of the reasons Ofer decided to expand his investment in the firm was to give partners more flexibility in investing in later stages to preserve their holdings. The fund is aimed at investing in ten to twenty companies.

The Ofer Global group has been investing in technology companies even before OGTech was founded. He has invested in late-stage pre-IPO technology companies including Facebook and Uber. OG Tech is headquartered in Monaco with a representative office in Tel Aviv through OG Tech Partners (Israel) and London with OG Tech (Global).

“Technology has become the central nervous system of the global economy,” Offer said. “Today, building on the success of Fund I, we are quadrupling our investment in OG Tech for Fund II. As the only venture capital LP, OG Tech aims to do business as a flexible long-term venture capital, without focusing on being a venture capital. Fund II marks the next chapter in our long-term commitment to invest in and support exciting new technology companies.”

Posted by Globes, Israel Business News – en.globes.co.il – 09/08/2022.

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