Overcoming the shortage of capital available in Israel for investment in companies requires creativity. A visit this week by a delegation of Japanese venture capitalists and corporate executives could provide one solution as the guests are seeking Israeli companies to invest in.
The delegation participated in the Japan Life Sciences Industry seminar organized by Harel Hertz Investment House Ltd. The guests included FinTech Global Capital managing partner Takashi Hondo and general partner Mizuhiko Hashimoto.
Hondo specializes in IT investments. He has served as an advisor at Accenture plc (NYSE: ACN), and was a partner in NIF Ventures, which has invested in a number of Israeli companies, including Envara, Exanet Inc., Identify Software Ltd., and StorWize Inc. Hashimoto was also a partner at NIF Ventures, managing the firm's investments in the US and Europe. Before that, he held senior positions at several major European banks.
FinTech Global Investments Inc. was founded in 1994, and its venture capital arm was established in 2007. Hondo and Hashimoto told "Globes" about the kinds of companies and industries they were looking for. Hashimoto said, "Since 2007, we've been partners in the venture capital arm, which manages $55 million. We also invest in technology companies outside Japan, although we're looking for companies with potential in the Japanese market."
Hondo added, "We have a long history of investment inside Japan and in other countries. We obviously won't invest without involvement of local venture capital, but we know the market, maintain ties, and we're looking for investment opportunities. I'm examining the semiconductor and IT sectors, and Mizuhiko is looking at opportunities in medical devices and biotech."
"Globes": What can you tell us about Japanese venture capital?
Hashimoto: "It is global in nature. Most funds invest in Japanese companies that target the global market. We found that Israel has an important role in global venture capital, its systems are mature, and there is no great difference between investment in the US and in Israel. We're comfortable investing in Israeli companies."
Hondo said, "Israel has leading companies in semiconductors, networks, and information security. This is why we visit and seek opportunities here. Israel has strong and professional teams. Since we invest from far away, it important for us to invest in companies that target global markets."
What are you looking for?
Hondo: "We're very interested in companies that are developing automotive technologies and products, semiconductors, and software."
Hashimoto: "Israeli life sciences companies have made a great leap forward in recent years. I'm currently examining six companies, and I assume that we'll invest in three of them. We're seeking companies developing non-invasive treatments, cardiology, and catherization."
At what stages?
Hondo: "We won't invest in seed-stage companies. Our ability to help companies is at the commercialization stage. We cooperate with Israeli venture capital funds to see early-stage companies, but we'll probably invest in later-stage companies."
Published by Globes [online], Israel business news - www.globes-online.com - on June 17, 2010
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