NFX launching ultra-fast $20 million investment track to support Israeli AI and biotech startups
Companies will receive a response within nine days of submission, with funds transferred within three weeks, utilizing a SAFE agreement to minimize bureaucracy
Venture capital fund NFX, considered one of the largest Seed funds globally, is launching an ultra-fast emergency investment track called Fast to support early-stage Israeli startups, primarily in artificial intelligence and biotech.
During the Covid-19 pandemic, the fund took similar action, allocating tens of millions of dollars for investments in companies in Silicon Valley and Israel. Now, the fast track will focus only on Seed and pre-Seed investments in Israeli companies, totaling $20 million. Companies in the track will receive a response within nine days of submission, with funds transferred within three weeks, utilizing a SAFE agreement to minimize bureaucracy significantly, according to the fund.
The fast track will open next week and last for three weeks. NFX partners will visit Israel at the track's end to meet entrepreneurs at an event named Israel Tech Is Back.
While emphasizing the focus on artificial intelligence and biotech, the fund said it will also consider investing in areas such as fintech, gaming, marketplace, and cyber. It also noted that companies previously denied funding in the past 12 months will be asked to detail business improvements made since they were rejected.
In a conversation with Calcalist, Gigi Levi-Weiss, co-founder and General Partner of NFX, stated that this track "could kick-start new companies." Levi-Weiss added, "We are committed to accepting all who meet the criteria and will invest tens of millions. However, if companies are unsuitable, we will not invest." Additionally, while focusing on new companies, Levi-Weiss noted, "We will also consider companies at later stages but under clear conditions."
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The goal is to motivate other funds to make similar moves, according to Levi-Weiss: "Our goal is not only to invest in great companies but to kickstart the industry. There is still dry powder for investment in funds, and if we don't invest now, there may be no companies to invest in later. The industry's gears must be lubricated. We have a sizable fund, and we'll do our part and others should do theirs."
Sarai Bronfeld, Principal at NFX, highlighted the search for Israeli companies with strong network effects that adopt AI capabilities to bridge the gap created in the past year and a half from Silicon Valley. "Just as we expect our entrepreneurs to be fast, we will also be fast and any company applying will receive a response within nine days or less."
