(Nasdaq:RDCM) today revealed details about its newly-launched RAD Venture Capital fund, established to provide investment opportunities for RAD employees.
RAD Ventures will be run by an independent board. RAD founders Yehuda and Zohar Zisapel will not be taking part in its management.
RAD offered 500 of its 1,000 workers to acquire units in the new fund. No less than 93% of the workers opted in. For each unit acquired, RAD grants a low-interest loan to acquire another 4 units. To date, the fund has raised $4.455 million in this manner.
RAD Ventures plans to focus on startups to be founded within the RAD group. It believes its startups are more successful than the average in the Israeli startup industry, which reduces the risk factor in the fund's investments. But at a later stage it will turn its attention outside the group, RDC stated.
RDC President and CEO Efraim Wachter explained that the underlying concept is to share the group's fortunes with its workers. RAD's workers support the group's startups as they start out, he said. It's only fair to enable them to invest too.
RDC develops access equipment for data communications and telecommunications. Sales in 2000 came to $200 million.