Israeli startups raised $3.6b in funding last year. This platform allows anyone to invest in them

Mor Assia (left) and Shelly Moyal (right), co-founders of iAngels. Photo credit: Roey Bronstein

Israel, also referred to as the “Startup Nation,” possesses one of the most active and innovative startup ecosystems globally. Not only does it have the most startups in the world on a per capita basis, its entrepreneurs are way ahead of the curve when it comes to building products that people need.

You may not know it, but every time you use an Apple product, utilize Google’s navigation tech, or even insert an innocuous USB drive into your laptop, you’re benefiting from technology developed in Israel. Little wonder that the ecosystem raised US$3.6 billion in funding last year, helping investors gain 50 percent on each dollar invested.

That’s the opportunity equity crowdfunding startup iAngels hopes to expand. The site is trying to equalize the playing field for global investors by helping them get a slice of the action and providing local Israeli startups better access to capital.

Built by experts

iAngels was founded by Mor Assia and Shelly Hod Moyal, both of whom have a finance and technology background. Mor graduated with an MBA from Columbia Business School and worked at IBM prior to launching the venture. Shelly’s a graduate of Northwestern, with previous jobs in Goldman Sachs and UBS. They believe their combined experience serves them well when it comes to building networks, scouring for the best deals, and building a product that resonates with angel investors worldwide.

“We were motivated by the challenges faced by entrepreneurs and investors worldwide,” explains Shelly. “We saw […] promising Israeli startups raising seed capital in Israel and then flying all over the world to find additional investors. We also saw investors […] wanting to invest in Israel but not having a professional vehicle […] and we felt there’s got to be a better way to connect the [two].”

Despite the robust investment space in Israel, Mor says there are still hurdles that prevent entrepreneurs from securing seed capital.

The traction needed to successfully close a seed round in Israel remains high.

Angel investors in the country are usually entrepreneurs who have successfully exited from multiple startups, as well as high net-worth individuals who’ve made their riches in real estate, finance, or other verticals. There are also a number of ‘micro-VCs’ looking to invest anywhere between US$500,000 to $1 million in seed rounds.

But the traction needed to successfully close a seed round remains high. The startup must already be revenue positive, have customers, proven concept, or engaged in deeply futuristic tech that requires substantial amounts of capital to scale up.

“In general, the capital available for early-stage startups has increased, but this does not mean its easy to raise seed rounds,” Mor adds.

High quality deal flow

For investors looking to sign up to be a part of the network, the process is fairly simple and straight-forward. But that belies the frenetic work that takes place behind the scenes to ensure only the most promising startups are selected for investment.

Delivering returns