TAU Ventures, the Tel Aviv University investment fund, has announced raising a second fund of $50 million for investments in startups, with the opportunity to grow the fund to $70 million.
The fund invests in early financing stages, often investing the first money in the company or after angel investment, a stage where there is a shortage in the industry. It intends to invest in 15 to 25 companies founded by Israeli entrepreneurs, with investment amounts up to $1 million per venture as a first investment.
TAU Ventures emphasizes creating value for entrepreneurs with various university resources. The fund focuses on backing strong teams of entrepreneurs across a wide range of sectors, understanding that at an early stage the product is expected to change.
All investors from the previous fund have reinvested in the current fund. Both funds were led by Chartered Group, which brings together many leading entities from the Japanese industry, plus new investors, including Family Offices in the US, Canada and Europe.
TAU Ventures first fund of $20 Million began in 2018 and made 18 investments including: SWIMM, Xtend, Gaviti, MyAir, Castor, Medorion and more. The first fund IRR is in the top 10% compared to all US funds from the same size and vintage.
According to Nimrod Cohen, founding partner of TAU Ventures: "We are in a period where a lot of money is circulating in the market. However, this can be misleading as there is still a shortage of investors in the early stages in Israel. More investors are operating in A or post-seed stages. They do not talk to entrepreneurs in the initial stages and rather want to see a product that has already reached the market. We are covering this critical stage enabling new companies to emerge."