The chaotic uncertainty in the market and specifically in the high-tech arena has caused many investors to pause before deciding to continue with the cash flow that startups so desperately rely on. However, on Monday, Amiti Ventures, which noticed a potential advantage in this new reality, announced that the VC firm has secured $110 million for its 3rd investment fund. The fund will look to invest in a variety of different tech companies that are at Seed and Series A stages only.
“We both have a strong investment resume…”
Heading the firm are Ben Rabinowitz, who founded Amiti Ventures; Maya Pizov; and Modi Rosen, who recently joined the firm after his stint as founding-partner at Magma VC. The latter VC fund was born in 1999 and for years considered one of the more successful VCs in Israel managing $450 million in funds. Among the fund’s major success stories, Waze sits on top, bringing in a $160 million ROI from Google; and automotive cyber startup Argus, which landed the VC a $40 million return. However, all good things come to an end, and the fund dismantled in 2017 following a dispute between the founders of the firm.
In a conversation with Geektime Rosen and Rabinowitz explained that they connected in early 2019 to bring the fund we’re talking about today into life: “We have known each other for the past 10 years, we’ve co-funded 4 investments together, and generally respect and like one another. We both have a strong investment resume and have built leading portfolios over the years. It just made sense that we would one day work together.”
The aforementioned joint ventures which the two referred to were investments in Innoviz, Autotalks, Valens, and Corephotonics, which was sold to Samsung for $160 million. Amiti Ventures led the 2015 investment in Coerphotonics along with Magma VC.
Amiti Ventures’ third fund is not planning on setting any limitations on potential investment sectors but rather intends on investing in early-stage technology-oriented Israeli startups. Furthermore, we asked the fund if it plans on changing up strategies following the COVID-19 crisis, Rosen and Rabinowitz claimed that the VC fund will continue its aggressive investing approach. The fund has already dipped in the investment pool with two investments in Israeli startups that will be revealed in the near future.
No deal without a face-to-face
Rosen and Rabinowitz both tell that because of the pandemic situation, the initial meetings are done over Zoom, however, no investment deals are signed before a real-life face-to-face meeting occurs: “We have a large conference room where we can meet while keeping social distancing regulations. We believe that it’s a mistake for investors to move forward without an in-person meeting. In this business, long-term bonds need to be forged, both sides need to trust each other and develop chemistry that will hopefully last for years. It’s extremely crucial for important strategic moments.”