The private American investment network Finance Creative Content International Coventry REIMS (FCCI-CR) announced on Sunday the opening of its Israeli branch, FCCI Israel, in Caesarea. The company plans to invest in Israeli startups.
FCCI Israel CEO Amir Weisberg said that the angels network is closing the financing gap created as a result of the current crisis in the hi-tech community and the venture capital fund sector, and startups.
FCCI has 440 private American investors or angels as they are known, and is headquartered on Wall Street. FCCI invests in startups in advanced stages, which have mature products or technologies. Most of the investment is designed for marketing and business development.
The entrepreneurs proposals are to undergo preliminary examination in Israel, and the entrepreneur will be offered consultancy services in order to improve the business plan and the presentation of the financing round. The proposal will then undergo careful due diligence tests in the United States.
If the proposal gets through to the stage of the investment recommendation, it is transferred to a group of investors best suited for making the investment according to the FCCI executive.
Some 35 to 45 potential investors are then invited to a meeting with the entrepreneur, and the company designated for investment is presented at that meeting.
Yoav Bleicher, who is to be in charge of business development in Israel, said that the network's investment per startup will be about $5 million, and that the majority of the investment will come from two major investors. Bleicher said that a speedy investment is the main advantage involved in raising capital through the FCCI network. He said that the capital is to be raised from the FCCI members within 30 days as of presentation of the startup.
This speedy process of investment has to do with the investment being in the form of a loan that in the future is converted into shares. This way FCCI saves the time spent on negotiating the value of the startup for the purposes of the investment.
Bleicher said that FCCI Israel plans to make two to three investments per month. He said that two communications companies are planning January fundraising in the framework of FCCI Israel.
Bleicher added that one of the communications companies plans to raise $9 million, and the other is planning a $5 million round. He said that the financing round involving FCCI will in most cases form a preliminary closing of the financing round, and that other funds and strategic investors will be able to join later.