PrivatEquity.biz sets up employee options micro-fund

Oren Harel
Oren Harel

The $13 million High-Tech Employees Index offers an innovative model of investment in a long-term fund.

PrivatEquity.biz, Israel’s first secondary market trading arena, is establishing the first fund in Israel, and one of the first in the world, with capital allocated solely for investing in securities that will be purchased from employees, former senior employees, founders and entrepreneurs in private high-tech growth companies. The fund, High-Tech Employees Index, offers an innovative model of investment in a long-term micro-fund, whose goal is to allocate roughly $13 million for the selective purchasing of privately-held securities of senior employees at high-tech companies. The High-Tech Employees Index fund will raise capital from Israeli and foreign Family Offices and private investors. The fund will invest in companies with solutions with substantial international market potential. Most of investment will be in Israeli companies, which have raised at least $10 million.

The fund’s investment will be based on the availability and the suitability of the employees’ privately-held securities, which meet the fund’s threshold conditions as presented on PrivatEquity.biz. The securities will be identified and selected on the basis of fundamental analysis and risk management principles by PrivatEquity.biz’s team of experts. The fund will invest in employees’ securities in fields such as internet, advertising, medical devices, biotechnology and the life sciences, big data, cyber and information security, computer vision, sharing economy, cleantech and renewable energy, fintech, and agrotech companies. The fund seeks to purchase a diverse securities portfolio, in order to ensure intelligent risk management for the long term. The board of directors of PrivatEquity.biz is currently examining some of Israel’s leading escrow services firms to act as trustees, oversee the investors’ capital and its management, and handle taxation issues and periodic reports pursuant to the fund’s conditions.

PrivatEquity.biz chairman Oren Harel said, “We see a strong demand by private investors from Israel and overseas to invest in securities of senior employees at private high-tech growth companies. In under six months, more than 1,000 investors, mostly from overseas, but also from Israel, have registered with PrivatEquity.biz. PrivatEquity.biz has had access to direct investment in securities held by senior employees at specific high-tech companies, which are presented on the arena. The fund we are going to raise offers investors an innovative option to perform additional direct investment in a diverse and exciting portfolio of meticulously selected promising private high-tech growth companies, allowing investors to spread risk and diversify their investment portfolio. We will identify for the fund's investors the securities of the best private high-tech companies in Israel.”

PrivatEquity.biz, business development director Nir Netzer said, “Over the years, venture capital backed private high-tech companies have offered attractive returns on investment, but these returns have been typically accessible only to institutional investors and high net worth individuals. Today, when so many growing companies remain private for longer periods than ever, investors in our fund can benefit from their increasing value before they are traded in stock exchanges. The fund we are raising will give private foreign and Israeli investors exposure to a wide variety of high-quality securities from diverse technological sectors. It provides an additional element to PrivatEquity.biz’s commitment to advance innovation through an intelligent platform, which connects entrepreneurs and senior employees in private high-tech companies with private foreign and Israeli investors, while generating high value to both the investors and the high-tech employees who hold the securities.”

Published by Globes [online], Israel business news - www.globes-online.com - on February 2, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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