Frequently Asked Questions
What is the preferable investment stage for the Challenge Fund?
What is the typical amount invested?
What does the typical investment process by the Challenge Fund entail?
What are the focus areas for the Challenge Funds?
Who are our investors?
What is the extent of our involvement and added value in our portoflio companies?
What have been the Challenge Funds' exits to date?
What is the preferable investment stage for the Challenge Fund?
We prefer to invest in first, second and later stage rounds
What is the typical amount invested?
Our mandate from our investors limits us to the smaller of $15 million or 25% of the company's equity. Typically, our investments range in size between $1 and $5 million.
What does the typical investment process by the Challenge Fund entail?
We take the due diligence of our potential investments very seriously. Typically, the process takes anywhere between three weeks and two months for a complete understanding of the company and the opportunity.

We focus our energy on the following:

  • Getting to know the management team in an attempt to understand their backgrounds, skills, motivation and leadership capabilities. We typically conduct reference checks.
  • Understading the technology, the competition, the market size and its expected growth rate. We typically consult with industry experts and market leaders.
  • Reviewing the business model and strategy
  • Reviewing the market's reaction to the company and its products by speaking to customers, suppliers and other constituencies.
  • Understanding possible liquidity channels for suitable exits within a reasonable time frame.
Prior to making any core investment, we must receive the approval of our Investment Committee which is comprised of leading business people from around the world.

We always try to be as efficient and quick as possible.

What are the focus areas for the Challenge Funds?
Our philosophy and mandate from our investors allow us to build a broad and diversified portfolio. Our primary focus areas are information technology, telecommunications, life sciences and traditional industries.
Who are our investors?
Our investor group is comprised of corporations and individuals with unparalleled experience and stature within the global business community.

Our Investment Committee is comprised of the following :

  • Edgar Bronfman: Former Chairman of Seagram Company.
  • Allen Andreas: Archer Daniels Midland (NYSE: ADM)
  • Charles De Gunzburg: Vice Chairman of First Spring Corp.
  • Giovanni Perissionotto: General Manager of Assicurazioni Generali.
  • Arie Genger: Chairman of Trans-Resources.
Almost all of the investors who invested in Challenge Fund I invested in Challenge Fund II, reafirming their belief in the Challenge Funds' management team and in the Israeli opportunity.
What is the extent of our involvement and added value in our portoflio companies?
We believe that active value added involvement in our portfolio companies is a key element of our existence.

Our management team is comprised of people with diversified and deep business, legal and financial backgrounds. We typically request board representation for a member of our management team. Our investment professionals work with the management teams of our portfolio companies on the formulation and excecution of the company's strategy and vision.

In addition, we consult with our Investment Committee which is comprised of leading business people from around the world as well as with our vast network of contacts in order to make targeted industry introductions and provide management consultation.

What have been the Challenge Funds' exits to date?
Since their inception Challenge I & II have invested approximately $160 million in over 70 portfolio companies. The Challenge Funds have generated 17 successful exits including 9 IPOs on NASDAQ and 4 successful sales.
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