The Truth About Israeli VC's?

The Funded , the recently launched resource for entrepreneurs (or gossip about VC's as some would call it), just posted a number of profiles on Israeli VC's. The judgments are quite hard with a few exceptions:

• Giza Venture Capital: Arrogant and untrustworthy
• Genesis Partners: They thing you work for them
• Walden Israel: This VC is asleep please do not disturb
• Apax Partners: If they invite you, it's to learn...not to invest
• Benchmark Israel Capital: Michael Eisenberg - One of the most sophisticated/manipulative/dangerous people in the industry
• Pitango Venture Capital: Large tanker VC - too large for Israel
• Evergreen Venture Partners: They were very impressed, and we are still waiting
• Jerusalem Global Ventures: Shlomo Kalish is/was the alpha male of this VC
• Fortissimo Capital: One of the few serious guys in the industry
• Carmel Ventures: An investment company that thinks it's a VC
• Zone Ventures: If you got extra time on your hands to burn
• Gemeni Israel Funds:Double face

It is not clear to me what parameters they use for passing judgement on the VC's, however I think initiatives like thefunded have an important role to play. If nothing more, at least for forcing some kind of transparency on the VC's. I have seen & heard too many bad stories from entrepreneurs raising capital so it's good that a rating site like this exist.

It is not very difficult to find venture capital now a days. What is difficult though, is to find a suitable VC. A friend of mine once compared partnering with a VC like a software bundle, you have to be careful of what comes with the bundle.. I would say its more like a Catholic marriage. It's is nearly impossible to get out once you are married...

I therefore recommend any entrepreneur to really examine carefully every potential investor beyond the money and the term-sheet, and question themselves if this really is a partner I can imagine to "live with"? Besides the cash, can they really add value? Scrutinize any potential VC like you would a bride to be and don't exchange rings before you are absolutely sure that this is going to be the "mother" you want for your baby ;).

It will be interesting to see once the list of Israeli VC's is complete who will take the lead.

I know some of the VC's above better than others. The only thing I can say is that I have heard the same about Giza from many different people. The other thing is that if your market is in the US - be very careful of who you are partnering with. I would go directly to a US VC rather than an Israeli.  The network and in-depth knowledge about the market is key to success (unless you already have the network and only need their money).

Technorati Tags: VC, Venture capital, The Funded, Giza Venture, Genesis Partners, Walden Israel, Apax Partners, Benchmark Capital, Pitango , Evergreen Venture Partners, Jerusalem Global Ventures, Fortissimo Capital, Carmer Ventures, Zone Ventures, Israel, Entrepreneurs

Comments

[Uri L.]

nice summary - cool reading :)

[Adrian]

Brilliant!

[Uri L.]

also worth mentioning maybe that these opinions are based on one user in TheFunded.