December 23, 2019

By Lynda Kiernan

Crescendo Venture Partners announced the launch of a new early-stage venture capital fund with the goal of raising up to $100 million to invest in Israeli software startups. The fund has already had its first close, and anticipates a final close within the first half of 2020. 

In partnership with the $3 billion, Switzerland-based Crescendo Group, Crescendo Ventures said that the fund will be targeting investment opportunities in software tech companies in AI, big data, and machine learning that have the potential to transform traditional sectors including agriculture, education, healthcare, and construction.

Crescendo Venture Partners is led by Zvi Schechter, Dr Yuval Avni and Tal Mizrahi, formerly partners at Giza Venture Capital, together with Mark Kavelaars.

Schechter was the co-founder of Giza Venture Capital in the 1990s, and is a pioneer in the Israeli venture capital space, having led investments in multiple groundbreaking companies, and completing successful exits.

Before getting into investing, Dr. Avni was a graduate of Technion Medical School and a surgeon. He went on to partner at Giza Venture Capital in Israel and in Giza’s overseas funds. Over this time, through the years 2015-2019, Dr. Avni manage Beta-02, a startup he led to a successful turnaround and sustained growth. 

Also a partner at Giza, and with more than 20 years experience in investing, finance, and the regulatory framework affecting venture funds in Israel and abroad, Mizrahi served as vice president of finance for PortAuthority, which was acquired by Websence for approximately $100 million.

Kavelaars is a managing partner and co-founder of the EUR 60 million Swanlaab Venture Factory in Spain, and brings more than 20 years of experience in tech, marketing, and investments.

“Despite the huge potential of startups in early stages, there is a gap between the financing needs of these companies and the amounts investors actually invest in this stage,” said Dr. Avni.

“Crescendo will bridge this gap with its team that will propose to entrepreneurs a combination of experience in investment and management of startups, along with a broad network of connections with companies and investors in Europe, Latin America and Asia who are interested in investing in Israeli software companies.”

 Israel has made a name for itself as a global leader in the advancement of ag and food tech. The country is ranked second out of 138 countries (outranked only by Switzerland) by the World Economic Forum’s Innovation Ranking, due in great part to a combination of distinct factors: 

Land: The semi-arid nature of Israel’s landscape and the constraints placed on its agricultural sector drive a need for innovation. Furthermore, the density of the country’s geography creates a close-knit network of innovative companies.

People: Israel’s history of being a country built by immigration has led to an open, entrepreneurial culture where the goal is innovation, while the influx of people of vastly different economic backgrounds has led to a multidisciplinary approach to problem solving. The cross-field aspect of the country’s expertise – from military, to gaming, to pharma – adds a depth to the pool of experience that can be pulled from for R&D initiatives.

Infrastructure:  The Israeli government has supports in place, while academic research is widespread. Meanwhile, the country’s military teaches its young people how to build, problem-solve, and meet failure with the understanding that knowledge has been gained.

This environment has led to an investor landscape conducive to all investors from generalists, to focused agtech, impact, global, and corporate investors.

“As a team that accumulated experience in investments and also in management of startups, we understand the entrepreneur’s viewpoint, take a professional and friendly attitude towards entrepreneurs and make quick decisions concerning companies we encounter,” said Dr. Avni.

“We are currently riding on the positive momentum of the cycle for Israeli startups,” added Schechter.

“We are constantly meeting with exceptional entrepreneurs with great ideas who can create a real transformation in a wide range of sectors of traditional industries in various sectors. Crescendo will place at the disposal of those entrepreneurs, a combination of capital, business experience and a network of global contacts with potential customers, partners and investors from around the world, who are yearning to connect and cooperate with innovative startups from Israel.”

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.