Yozma invests primarily in companies in the fields of Communications, IT and Medical Technologies.
Emphasis is placed on companies that develop infrastructure and enabling technologies. Yozma favors:
- companies that have a depth of technology
- entities with a multiple stream of products
- companies that place their main target markets globally.
The Group focuses on companies that target international markets.
Investment Stage and Size
Yozma invests in all stages of company development with a primary focus on early-stage. Initial individual investments typically range between $1 million and $6 million. Additional capital is reserved for follow-on investments.
Value Added Post Investment
The Group seeks to invest in early-stage companies in which it can create a significant added value.
The Group aims at taking a lead or co-lead investor position in its portfolio companies, hold seats on their Boards of Directors, and obtain significant minority equity stakes in order to compensate for the Group's involvement and contribution. The Group works closely with its portfolio companies, assisting them through all stages of development. Every portfolio company has open communication channels with each partner and access to the resources they have to offer, including among others:
- Helping the company formulate its business strategy,
- Introducing the company to Strategic Partners,
- Connecting the company to leading analysts and Investment Banks,
- Aiding in hiring/recruiting top level candidates and
- Assisting the company in opening international offices.
In addition, on a selective basis, the Group invests in more mature companies with an attractive upside potential, where seasoned management and other leading venture funds are on board. Typically, these types of companies require a reduced level of management attention. In all cases, the Group conducts a substantial due diligence review process prior to investing.
Once a potential investment is identified, it is reviewed and analyzed by Yozma's executives. Opportunities that appear to have a significant potential, proceed to the due diligence stage, which involves extensive analysis of management, markets, business, technology, and competition. When appropriate, Yozma will use its network of operating companies, Advisory Board members and technology experts to evaluate certain aspects of the business.
Yozma evaluates its investment opportunities according to the following criteria:
- The target markets are substantial and the business contains the ingredients necessary to achieve a leading market position
- Management is capable of executing its business plan and possesses the appropriate balance of entrepreneurial and managerial skills
- Technology is widely applicable and has some proprietary characteristics, which can not be easily duplicated by competition.