Bank Leumi (TASE: LUMI) in Palo Alto will do a great deal to reach Israeli entrepreneurs and company managers in Silicon Valley. It does not charge a commission to convert foreign currency, and it helps the families of company managers who are relocating to find appropriate schools for their children.
Bank Leumi recently held a conference for entrepreneurs and investors during which a cooperation agreement was signed with WTI, a US fund that gives loans to Israeli start-ups.
In an exclusive interview with "Globes," Eitan Sapir, who manages Bank Leumi's activities in Silicon Valley, says that he can provide more aid and services to Israelis in Silicon Valley than any other Israeli or US bank.
"Bank Leumi targeted the high-tech industry twenty years ago, and today we are specialists in this area," Sapir said. "No other Israeli bank has a branch in Silicon Valley. But this is only part of the picture: among the 25 Leumi business branches in Israel, 12 of them are designated for start-up companies."
Help with personal matters too
The Palo Alto Bank Leumi branch was established ten years ago by Bank Leumi subsidiary Bank Leumi USA. "Bank Leumi USA is a fully-fledged bank, not a sales branch of a local bank," Sapir said.
"No organization can fulfill all the needs of high-tech companies," Sapir adds. "You need to understand that these companies begin global activity very early on. They sell to customers in different countries, book revenue in a variety of currencies, but most of their expenses are in shekels.
"We provide the necessary dynamics to work with multiple currencies. Because revenue arrives in various currencies, and most office and manpower expenses in Israel are in shekels, we do not charge commissions on foreign currency conversions or on capital transfers. This is very significant for young companies that count every penny."
What exactly do you offer - loans, financial products, investments?
"Bank Leumi has a policy of providing financing for start-ups, and this usually occurs when the company has begun to grow and has significant sales."
Do you also offer non-financial help?
"We have a large, strong network of connections in the US. We help entrepreneurs and their companies on a personal level as well. We assist them by introducing them to potential investors. We are connected to large US venture capital funds, to angels and to angel groups, as well as to large clients. After we provide the introductions, our role ends, but no US bank can offer the services we do.
"We also help on a personal level, mainly families relocating to Silicon Valley. We help them find schools for their children, assist them in renting a house and office space, and find services that are the most appropriate for the company. We have provided space in our offices more than once to companies until they can rent their own offices. We have made this is our role in the Israeli entrepreneur community in Silicon Valley."
Published by Globes [online], Israel business news - www.globes-online.com - on December 19, 2011
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