The A+CROWD Opportunity

 

Israel is known as the Startup Nation for good reason. Every year, Israel continues to dominate the charts when it comes to metrics that measure productivity, innovation, and entrepreneurial passion.

Israel is ranked first in the world for the highest density of technology startups per capita, with 4,000 active startups, out of which over 2,000 are funded. This tiny nation also invests about 4.3% of its GDP in R&D – the highest ratio of any country in the world – more than global powerhouses such as the United States or China. Elite military technology units produce a never-ending pipeline of highly skilled and hungry entrepreneurs, many of whom mature into serial entrepreneurs after early successes. The prevalence of highly innovative companies has made Israel a prime M&A market for strategic and financial buyers alike.

It is clear that the Israeli startup scene continues to thrive and generate strong returns for early stage investors across the board as demonstrated by more than 100 companies which had liquidity events (IPO, M&A) for a combined value of over $20 billion over the last 3 years.

However, even though the venture capital landscape in Israel has grown at a healthy clip over the last two decades, the supply of available funding has not kept pace. Many venture capital funds have experienced challenges in raising additional capital, the funding capacity of local angels is limited, and the Israeli early stage landscape is by and large inaccessible to private investors. As a result, there is a significant valuation difference between Israeli seed rounds and those in the U.S. or Europe. Seed rounds in the latter are typically twice the valuation of those in Israel ($4 million abroad versus $2 million in Israel).

These two trends – growing number of exits and limited availability of funds – drive an ever-widening gap in the market. On one hand, startups now require much less time and money to kickstart their company and reach profitability. On the other hand, traditional venture capital funds are reluctant to invest amounts smaller than $1 million per investment as it does not fit their investment profile. This presents a golden opportunity for the global angel investor community to swoop in and fill the gap.

A+CROWD – was founded with the vision of doing exactly this. Our goal is to open the early stage global market to a global community of private investors. For the first time ever, private investors can finally co-invest with exclusive angel network in some of the most promising early stage companies to come out.

We work with lead angels that have a demonstrated history of bringing value to early stage companies – specifically, a proven track record of successful exits and access to proprietary deal flow. Our lead angels are thought leaders in their fields and have decades of operational and transactional experience. Due to their reputation for repeated success, they get first dibs on almost all of the early stage deal flow in the Israeli market. No other equity crowdfunding platform in the world has this kind of visibility into the Israel early stage investing scene.

A+CROWD is proud to enjoy longstanding relationships with key angel investors driving the Israeli high tech industry, many of whom are our partners and advisors. We believe they choose to invest with us because they understand that this is a more efficient way of bringing more investors to Startup Nation. Most importantly, they share our vision of opening up this market to a new generation of angel investors.