The Grass is "Greener"... on our side

da bubble

Just had to post this one... (Thanks Danny)

iDrink 7...

Was a great success - I estimate over 300 people attended. We had great company presentations and networking. People are finding investors, employees, and brainstorming ideas...

Niv and Ouriel wrote nice impressions, so I won't add much. (Other than the fact that next time we'll definitely arrange for a bigger place!)

 

Technorati Tags: iDrink, idrink 07, Israel, Internet

Green - The color of the year

If I had to bet on what this year (and the coming years) will be colored as, I would place my money on Green. 

As I wrote before - I'm sure the western world has now passed the "tipping point" with regards to "Green awareness".

Israel as well, is no small player with regards to environmental impact.

As a country we definitely have a lot to improve on - But more importantly, I think we have the potential to make a huge positive impact on the global environment - through technology!

In upcoming posts I'll write about the Israeli Green Technology industry, which I believe has huge potential - To improve our environment, to create world leading companies, and to bring great returns to investors.

(As a first step... I've changed my blog color accordingly...)

iDrink tonight... color coded!

Tonight's iDrink should be new and improved:

1. We have a couple of companies launching their products "Demo" style...

2. We have a color coding, so we can finally identify who comes from where...

Should be fun

 

Technorati Tags: idrink, idrink6, Israel, demo, entrepreneur event

iDrink #3...

I'm just getting over my hangover from iDrink #3 which took place last night...

It was a great success - around 150 people showed up... We also had a hot new location (Lakikar in Tel Aviv)... and I guess the sponsored drinks (thanks AOL-Relegence) did their share to get people in the right mood

 I was really glad to meet some new faces - web entrepreneurs with great ideas and a lot of enthusiasm. The Israeli web scene is definitely still very hot - but very down to earth. The entrepreneurs I spoke with have an understanding that real revenues have to come into a company relatively soon (and not just the VC $) - and that in many cases it doesn't take a lot of money to prove the initial traction... So it seems they are all out there building initial versions and launching them...

Finally... Here's me before the drinks started flowing... (Thanks Ouriel)

Tags: iDrink, iDrink 3, Israel, Internet

Investing in Israel's most promising CEOs

I think the holy grail of deal making for VCs is being able to put your money behind the "Big Hitter" CEOs:

These are CEOs that have done it before big time (Multi hundred Million, or even Billion $ exits), and are still hungry to do it again - this time even bigger...

It just so happens that this week I had the chance to meet with two such CEOs. The experience was very different from anything most VCs experience on a day to day basis. To be more precise... It was almost the exact opposite:

• These CEOs can pick and choose whomever they want to work with (rather then strive to get a meeting)
• They set the agenda, and decide at what pace things move
• They conduct much more due diligence on you than you do on them
• They set the terms of the deal (and can stick to them)
• ...And they collect the term sheets (rather than wait to get them)

After spending some time with them, it becomes very clear why this happens - These guys are incredibly impressive, and there is no doubt they will build very big companies (or at least burn a lot of money trying...). One thing's for sure - they will not stop half way. And this is exactly what us VCs look for.

There is a lot to learn when meeting such people... but to me one thing stood out, which any entrepreneur should implement. It seems that for these people, the most important factor in the funding is:

The decision on who will be their partner

The person that will sit together with them around the board table and walk with them along the path to success... At the end of the day, money is a commodity... But selecting your partner is a decision that no entrepreneur can take lightly, and in that respect - any entrepreneur should see him/herself as the Billion $ Promise...

iDrink #2 is Approaching!

Following our last iDrink event (Israeli internet get-together), we're getting ready for the next event - this time much bigger and better!

So if you're into internet (an entrepreneur, blogger, industry lover, investor, etc) and are in Israel on Wednesday the 21st, I'm looking forward to seeing you there.
(In line with (avoiding) a bubble 2.0 atmosphere - it will be a "buy your own drink" event)

Pass the word on to your friends!

Wednesday, 21 February, starting at 19:30
Melle Bar, on Dizingoff street 215, Tel Aviv (Corner of Zabutinski street)
Please register here if you'd like to attend (so we can send any updates if needed)

PS - I'm sure there are some girls involved in Israeli internet - Would be great to see some more out there... (Its a great place to find a husband)

Can a VC move fast?

I'll start with the answer:

Yes! - A VC can move fast (Very fast)*

What does it take? Well, sort of a perfect storm:

• Great Entrepreneurs
• A Great Idea
• Great time Pressures (...i.e. competition)
• And Great Courage (of the partner leading the deal)

When these (and some other) conditions collide, a VC can take an investment decision very quickly.

I just got home after signing a term sheet with a new company. The whole process (i.e. first meeting till money in bank) was amazingly quick. I won't provide details on the time (trust me it was Fast), the amount of money (a significant sum), or the idea (a promising one).

I will mention one key thing - You really need to have a strong partner leading such deal - preferably one that has a lot of experience in the field, great intuition, the ability to drive deals within the fund, and a lot of guts.

... last, but not least - its always good to have an Associate that's willing to give up a few nights sleep and a weekend to push the deal through (I'm not complaining... not complaining...)

*do note - Such a quick process is not the rule in the world of VC, rather the exception... although from what I've been seeing over the last months - it's happening more often around here. Definitely a sign of the (heating up) times.

Tags: VC, Deal making, Raising money, Fast

The Bubble and an Airplane Escape

The last weeks have been crazy!

I really think the Israeli tech market is starting to boil – and I’m quite sure I can see the bubbles.

Especially if measuring by:

• The sudden increase of new deals we’re seeing - many of which actually seem very promising

• Valuations – Which have risen dramatically, and really seem outrageous at times

• The time to investment decision - which has been forced down to a number of weeks in some cases, given the competition within the VC community, and amount of money looking for deals

No doubt – it’s a great time to be an entrepreneur! The top entrepreneurs are definitely in the driver’s seat.

As a result of this - I’ve been working (very) long days (and nights), and have not had a proper weekend for several weeks now… (I’m not really complaining though, since this is probably the most exciting and challenging time to be in a VC)

Nonetheless – It’s been impossible to catch up on all my work. And only now, finally, as I sit in the plane (TLV to Paris… LeWeb3) – I realize the best escape – and most efficient workplace from all this mess is… On a plane:

• There’s no people / TV / kitchen distractions

• No new incoming emails / calls

• No connection to the web (which means I can’t google / read blogs / check my stats / or any other such time consuming activity)

• And its impossible to move out of the seat (given the big, fat, ugly guy in the seat next to me)

So not only have I finished 2 investment presentations… and cleared out my Inbox… I’ve also finally found time to blog about it!

(I just pray to the god of laptop batteries to give me more power)

Tags: VC, Israel, Technology, Bubble, Valuations, Efficient work

LGILab - New Website (Blog)... and a First Investment

LGILab - The Lightspeed-Gemini Internet Lab is basically a joint venture between Lightspeed Venture Partners and Gemini Israel dedicated to seed investment in very early stage internet Israeli start-up.

They've been running for a few months, headed by Ouriel and Chaired by Dan Ciporen - and seem to be doing very impressive work. Most importantly they have a very unique and attractive value proposition for internet entrepreneurs... (Such initiative could have a real impact on the sustainable development of the Israeli internet industry)

This week they both:

• Launched a new web site - Which is actually a blog (Ouriel is also the one behind TechCrunch in France)
• Announced their first investment - in the area of "Fantasy sports" - BPTech - Headed by two (very!) young, and (very) talented entrepreneurs

Worth keeping an eye on the lab's activities - I'm sure some very exciting web startups will grow from there.

Tags: Gemini, Lightspeed, Internet lab, Ouriel Ohayon, Dan Ciporen,  BP Interactive Technologies