Kobi Samboursky shares his point of view about the new trend of Israeli startups investing in one another

December 13, 2021 • 2 min read

There is a new trend of Israeli startups investing in one another in Israel. This trend results from cash flowing into Israeli high-tech that has generated this phenomenon. Startups that have recently raised funds and companies which until recently were startups themselves and were IPO’d very recently are investing in other startups.

 

Glilot’s Managing Partner and Co-Founder, Kobi Samboursky, shared in a recent article by GeekTime that the phenomenon that investments by giant companies in young companies is not new, and companies like Intel and Dell invest hundreds of millions in startups in many fields. According to Kobi, this is a trend of recent years in which Israeli entrepreneurs think on a larger scale. They want to establish companies that also create a broad ecosystem around them. “Investing in smaller companies, as well as acquiring companies – which is another phenomenon that is prevalent today unlike in the past – shows that Israeli entrepreneurs have passed through another phase. They think big, reach far and plan more broadly than before.”

 

On the other hand, Kobi warned that the investment of Israeli startups in companies should not be made in early rounds. According to him, strategic investment is not a negative thing, but one should make sure that it comes at the right time and in the right way. “In the early stages, it is advisable to bring in financial investors who have a genuine desire to grow the company to its maximum potential. When bringing in investors at any stage, it is essential for founders to understand their motivation, understand how they can provide strategic value beyond the investment, and maintain their complete independence.”

 

According to Kobi, “It is advisable to simultaneously bring in several strategic investors to achieve balance in later stages. However, one should ensure that the company does not appear as a subsidiary of the investing company. This can significantly limit the company’s potential and the way the market sees it.” According to him, as long as it is clear that the investment promotes the company, the situation can be beneficial for all parties involved. Still, on the other hand, if the same investment creates conflicts of interest and limits the company – then it is better to take money from a financial source like a venture capital fund.”

 

To read the complete article, visit GeekTime.


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