Yozma invests primarily in companies
in the fields of Communications, IT and Medical Technologies. Emphasis
is placed on companies that develop infrastructure and enabling technologies.
Yozma favors:
i) companies that have a depth of technology;
ii) entities with a multiple stream of products; and
iii) companies that place their main target markets outside Israel.
The Group focuses on Israeli and Israeli-related
companies that target international markets.
Yozma invests
in all stages of company development with a primary focus on early-stage.
Initial individual investments typically range between $1 million
and $6 million. Additional capital is reserved for follow-on investments.
The Group seeks to invest in early-stage
companies in which it can create a significant added value. The Group aims
at taking a lead or co-lead investor position in its portfolio companies,
hold seats on their Boards of Directors, and obtain significant minority
equity stakes in order to compensate for the Group's involvement and contribution.
The Group works closely with its portfolio companies, assisting them through
all stages of development. Every portfolio company has open communication
channels with each partner and access to the resources they have to offer,
including among others:
Helping the company formulate its business strategy,
Introducing the company to Strategic Partners,
Connecting the company to leading analysts and
Investment Banks,
Aiding in hiring/recruiting top level candidates
and
Assisting the company in opening international
offices.
In addition, on a selective basis, the Group invests
in more mature companies with an attractive upside potential, where seasoned
management and other leading venture funds are on board. Typically, these
types of companies require a reduced level of management attention. In all
cases, the Group conducts a substantial due diligence review process prior
to investing.
Once a potential investment is identified, it is reviewed
and analyzed by Yozma's executives. Opportunities that appear to have
a significant potential, proceed to the due diligence stage, which involves
extensive analysis of management, markets, business, technology, and competition.
When appropriate, Yozma will use its network of operating companies, Advisory
Board members and technology experts to evaluate certain aspects of the
business. Yozma evaluates its investment opportunities according to the
following criteria:
The target markets are substantial and the business
contains the ingredients necessary to achieve a leading market position;
Management is capable of executing its business
plan and possesses the appropriate balance of entrepreneurial and
managerial skills; and
Technology is widely applicable and has some proprietary
characteristics, which can not be easily duplicated by competition.