Sources inform ''Globes'' that former Formula Ventures partner Shai Beilis and former Star Ventures partner Yaffa Krindal are setting up new $100 million cleantech fund called Tamarix Ventures LP. Tamarix will become Israel's largest cleantech venture capital fund. It will invest in companies regardless of geographical region, fields and stage of development.
In an exclusive interview with "Globes", Beilis voiced optimism about the fund, and said the challenges in cleantech were many. "There's now more air pollution, natural resources are dwindling, and technological products can provide solutions that will reduce the risks, while generating profits. Cleantech is enjoying broad support, regulation is conducive to its growth, public opinion is favorable, and large corporations are willing to invest in it."
Globes: How big is this field?
Beilis: "It's big, and it's also seeing tremendous growth. For example, it is estimated that the water market will reach $500 billion in 2010, and $1 trillion by 2020. The energy market is expected to reach $430 billion in 2010, and $1.9 trillion in 2020.
Who invests in this field?
"Venture capital and private equity investment grew from $1.1 billion in 2002 to $18 billion in 2006. In 2006, venture capital investment in cleantech totaled $1.6 billion, 43% of total venture capital investment. Research companies predict that cleantech will need $3.4 billion in investment in 2009."
Several cleantech funds have been established over the last two years. Some of them, such as the ventures initiated by Shari Arison and Benny Gaon do not fall under the venture capital category. Those that do, such Israel Cleantech Ventures, and Terra Venture Partners LP are small. Israel's leading venture capital funds, including Pitango Venture Capital, Gemini Israel Funds, and Genesis Partners have set their sights on the field but have not made significant investments so far. Tamarix's success in raising its first fund could be the first sign of serious cleantech investment activity in Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on December 17, 2007
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