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Lighthouse Capital Partners, a US venture lending firm with $1 billion under management has teamed up with Magnolia Capital Partners to provide venture lending to Israeli-related companies in the technology and life sciences sectors.
"Israel is an undeserved investment sector when it comes to venture lending. While traditional equity investments have gained momentum in this market, venture loans - which enable young companies to gain additional financial support with minimal dilution - has been underutilized in the Israeli market," said Hagi Schwartz, founder and president of Magnolia Capital Partners, a financial services group serving emerging growth technology and life science companies in Israel.
Lighthouse has invested in more than 350 emerging companies, including approximately 10 with affiliations in Israel. Lighthouse and Magnolia have already funded three Israeli companies, including HyperRoll Inc., Skybox Security, Inc. and Transparency Software, Inc.
"Over the last decade Israel has become a hotbed for emerging technologies and we have already enjoyed success working with some of the region's most innovative companies," said Rick Stubblefield, co-founder and managing director of Lighthouse. "We believe the combination of Lighthouse and Magnolia will enable us to provide the most promising Israeli entrepreneurs with the on-going capital, senior-level guidance, and strong organization required to help build market-leading companies."
Separately, tech pioneer Isabel Maxwell recently identified another trend as a result of venture capital investments gaining momentum.
"Another important development ... is the return to the market of non-VC seed investments by individuals, as well as several formal and informal private investor communities," said Maxwell, a senior consultant to hi-tech companies and VCs. "As VCs have raised the bar and increased the typical round size, many entrepreneurs are finding that private smart money by industry insiders is often a better fit for their venture at its initial phases."