Gemini Israel Funds of Israel and Lightspeed Venture Partners of the US announced today that they would create a joint Lightspeed-Gemini Internet Lab. The two venture capital fund will invest in ten new Internet companies, investing up to $1 million in each company over the next 18-24 months.
Gemini partner Danny Cohen said today, “Our goal is to exploit Gemini’s experience and know-how in Israeli seed-stage investment and our network of Israeli and global connections, while leveraging Lightspeed’s vast network in the US. The two funds will invest in the venture in equal shares, demonstrating their full commitment to it.”
Lightspeed general partner Jake Seid said, “We set up the lab so that entrepreneurs won’t have to guess about what we’re interested in, and suitable companies will know how to reach us quickly.”
Cohen added, “Speed is one of the purposes of the venture. We’ve created an efficient mechanism for approving investment in a company within weeks of the first meeting with it.”
“Globes”: Are you planning to set up a kind of mini-incubator that will invest in ten new companies every two years, or is this a one-time venture?
Seid: “The idea is to focus on ten promising companies now, raise them, and continue to foster them through later stages. If we see that the venture is a runaway success, we’ll consider setting up another venture with new companies.
What Internet subsectors are you especially interested in, and which do you think are growing especially fast?
Cohen: “We believe that the entire Internet industry has been growing and development has been extremely fast lately, and that this momentum will continue in the coming years. There are many sectors with opportunities for innovation and change, including vertical sectors, i.e. areas of defined interest, such as sports and music. E-commerce is also expected to grow extensively, and there is considerable experience in these fields in Israel.”
Seid: “We’re also looking at new and varied kinds of searching - topic-sensitive search, a more sophisticated search.”
It’s fairly cheap to found an Internet company. How far do you expect a $1 million will go?
Seid: “It’s different with each company. In general, the idea is for our investment and support to last through the product prototype stage, at which point a company will hold a larger follow-on round with other venture capital funds participating.”
Is the door open for other funds to participate in the venture?
Cohen: “The venture is built on our two funds, and there are no plans to bring in other funds. We’ll be pleased for other financial partners to participate in the venture’s portfolio companies’ subsequent financing rounds.”
Have you already chosen companies to invest in?
Cohen: We haven’t yet signed a cooperation agreement with any company. We’re hereby calling on companies interested in the field to present themselves.”
Published by Globes [online], Israel business news - www.globes.co.il - on March 1, 2006