Today (Thursday), Israeli venture capital fund OTV (Olive Tree Ventures) announced the closing of a $170 million fund. The fund, which contains 12 portfolio companies so far, aims to back startups in the digital health sector.
Operating from Israel, investing globally
The VC fund has mostly invested in startups from the digital health field, including Tyto Care, Lemonaid Health, and Scopio. In addition, the VC has one portfolio company not in the healthcare sector, HARBO - developer of a system for preventing oil spills. Alongside the new fund announcement, OTV also reported opening a new office in China, to further expand investment in South East Asia.
Partner Manor Zemer explained in a conversation with Geektime that despite the fund operating from Israel, it will also invest in startups from the global arena. “We are a global fund searching for digital healthcare startups from anywhere and everywhere,” noted Zemer.
Zemer told us that the capital raised for the new fund came from private investors, institutional investors, and from Family offices. According to Zemer, the fund will focus on mid-growth startups with a proven product or a market with a dire need for a startup’s development.
“Our expertise is in helping startups mature, whether it be with technical questions or maneuvering through regulatory barriers. We are looking for portfolio companies with proven products that want to make the next step and secure global exposure,” Zemer said.
When asked about closing the fund during the ongoin pandemic, Zemer said that “it was a different but interesting experience, with most of the meetings taking place over Zoom. We realized that despite COVID pushing telehealth solutions into the spotlight, the pandemic, in the end, only accelerated pre-existing processes, and didn’t really change the foundation.”
OTV was founded in 2015 by 3 partners - Mayer Gniwisch, Amir Lahat, and Alejandro Weinstein. To date, the VC fund manages a $170 million portfolio.
"OTV's goal for the upcoming period is to harness our expertise in facilitating the growth of digital health companies, and, with laser sharp focus, identify the market leaders of tomorrow," said Alejandro Weinstein, General Partner, OTV. "Digital health technology is increasingly important for strained healthcare systems seeking to provide accessible and affordable treatment, especially to traditionally under-served populations. The Covid-19 pandemic elucidated the importance of digital products to the global healthcare ecosystem, but industry pain points predated the current crisis and clear solutions will be needed in the years to come."