MEDX Ventures Group, which specializes in life sciences and has invested $15 million in the sector, plans to expand its operations, sources informed "Globes".
The investment firm raised $30 million to be used in pre-seed and seed funding for biomed firms in Israel making it a significant player in the sector, with a focus on medical devices.
The majority of the funds were raised from private investors, mainly wealthy Jewish families from the US and Europe who are interested in helping Israel and agree to reinvest the firm's profits back into its operations benefitting solely from the returns of the fund.
The model integrates philanthropic work with the profit-seeking aspect of venture funds. Due to the unique profile of the firm's investors, it does not operate as a time-limited fund which must return its clients their investment within seven years. Instead, MEDX is an "evergreen" fund which continually reinvests its profits and can manage specific investments for an unlimited span of time.
MEDX was founded in 2010 and initially invested in ConTIPI, which was later sold to Kimberly-Clark for $90 million. It also backed Microbot Medical and XACT Robotics, which specialize in miniature robots for medical procedures one of the fastest growing segments within the biotechnology sector.
Sources familiar with the firm, the companies MEDX has invested in have raised or closed deals worth a total of $120 million.
MEDX had a number of successful 'exits' worth tens of millions of dollars based on investments of a mere millions or less. The firm has operations in Europe and the US, including a biotech accelerator in New York that is supported by leading research institutes and is partially funded by the state.
Beyond its role as an investor, MEDX also offers support and professional consultation for companies in its portfolio.
Harel Gadot the firm's founder, chairman, and CEO previously served in a variety of senior roles at Johnson & Johnson. His last position at J&J was Worldwide Group Marketing Director for subsidiary Ethicon Inc. In his more distant past, he was a professional basketball player.
As part of MEDX's strategy of supporting firms in its portfolio, Gadot also serves as CEO and chairman of Microbot Medical and XACT Robotics.
Beyond the current fundraising effort, the company is seeking to sign a strategic partnership which could add to its coffers and allow it to increase its workforce up to 50 people.
Published by Globes [online], Israel business news - www.globes-online.com - on August 2, 2015
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