Sources inform ''Globes'' that BlueRun Ventures is reducing its investment activity in Israel because its does not think that there are adequate opportunities in it. Several weeks ago, the fund's partners decided to scale back their investment in Israeli high-tech companies and to focus on the US and China.
BlueRun partner Yossi Hasson, who overseas Israeli operations, confirmed the report. "This is a strategic decision that the fund's partners recently made to reduce investment activity in new companies in Israel, and to strengthen activity in new companies in the US and China," he said.
BlueRun was founded as the global investment fund of Nokia (NYSE; LSE; HEX: NOK). It changed its character in 2005, severing ties with Nokia and raising a new $350 million fund. Nokia is now only the anchor investor in the fund, whose other investors include Goldman Sachs Group Inc. (NYSE: GS), BMC Corporation (NYSE: BMC), and DEA Capital SpA (Milan: DEA) (formerly CDB WebTech). BlueRun has offices in California, Finland, Israel, Beijing and Shanghai in China, Mumbai, and Seoul.
Hasson said that the decision to reduce new investment activity in Israel was unrelated to the global economic crisis. "We've been active in Israel for four years, and made five investments; in other words, about one a year. The pace of investment may now slow to one every two years, depending on opportunities."
"Globes": Does BlueRun think that there are no promising opportunities in Israel?
Hasson: "In terms of the risk/reward ratio and compared with what we see in other places around the world, venture capital in Israel seems less promising. I'll continue to be a partner in the firm, and I'll keep the companies we've already invested in. We won't reduce the scale of our global investment, and we'll even expand it in the US and China. We're now looking for employees there."
Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008