Invest In Early-Stage Startups: Opportunities In Israel’s South With Labs/08
The Labs/08 concept: invest in early-stage startups in Israel’s South
Israel’s tech scene is famously concentrated in the center of the country. Tel Aviv, Jerusalem, and the surrounding areas are the home to some of the biggest names in the startup ecosystem, including several well-known unicorns. But for those wanting to invest in early-stage startups outside of these saturated areas, what options are there?
Does this mean that this is the full story when it comes to Israeli innovation and investing in early-stage startups?
Absolutely not, and this is where Labs/08, the Be’er Sheva-based branch of Labs/02, comes in.
Labs/08 – so named after the area code of the region which it serves, including Be’er Sheva and the south of Israel – was established almost three years ago, in response to a request from the Israel Innovation Authority (IIA). They wanted to replicate Labs/02’s business model, and achieve the same levels of success but in the country’s south – where there was a lack of active VCs willing to support venture creation and invest in early-stage startups.
Tal Gilor, a partner at Labs/02 and who heads up Labs/08, has built, together with the Labs/02 team, an incredible organization that manages end-to-end investment processes in startups based in Beer Sheva; from finding promising companies and technology, to carrying out due diligence, negotiating terms, guiding the company through the Israel Innovation Authority process, and helping them to scale.
Does this mean that this is the full story when it comes to Israeli innovation and investing in early-stage startups?
Absolutely not, and this is where Labs/08, the Be’er Sheva-based branch of Labs/02, comes in.
Labs/08 – so named after the area code of the region which it serves, including Be’er Sheva and the south of Israel – was established almost three years ago, in response to a request from the Israel Innovation Authority (IIA). They wanted to replicate Labs/02’s business model, and achieve the same levels of success but in the country’s south – where there was a lack of active VCs willing to support venture creation and invest in early-stage startups.
Tal Gilor, a partner at Labs/02 and who heads up Labs/08, has built, together with the Labs/02 team, an incredible organization that manages end-to-end investment processes in startups based in Beer Sheva; from finding promising companies and technology, to carrying out due diligence, negotiating terms, guiding the company through the Israel Innovation Authority process, and helping them to scale.
Why southern Israel and Be’er Sheva specifically?
Many people might not know it, but Be’er Sheva was named the cyber capital of Israel. Moreover, Be’er Sheva has a lot more to offer than just cyber. One of the biggest universities in Israel, Ben Gurion University of the Negev, is located in the city, and it’s teeming with talented and experienced researchers, with groundbreaking IP, just waiting to be exposed and commercialized. In addition, Soroka – one of the largest general hospitals in Israel – is located in the city, and promotes innovation by working with startups and the academy. All of this combined with local entrepreneurs with brilliant ideas, creates great potential for the southern startup scene, and for those wishing to invest in early-stage startups.
This is the goal for Tal and Labs/08: to invest in and build incredible companies in Be’er Sheva with strong IP, mainly coming out of Ben Gurion University and from local talented entrepreneurs that seek mentorship and guidance while building their startup.
The technology coming out of this area spans the gamut of sectors: from IP around medical and health, to automotive, cyber of course, agritech, and sustainability – and everything in between.
Be’er Sheva is perfect for this mission. There’s BGN Technologies, the tech transfer company of the university, that does great work in building successful ventures by establishing Yazamut 360, Oazis accelerator, and Cactus VC, that aims to encourage students, faculty members and researchers to develop and hone their entrepreneurship skills; and with Tech7, an entrepreneurship and technology community for startups, aiming to unify the tech and startup scene that is rapidly growing in the Negev. Through strong partnerships with these organizations, Labs/08 gains great access to deal flow and new ventures in the Negev. The strong relationship with BGN and Tech7 guarantee many more investments in early-stage startups for Labs/08 as an active VC in the Negev.
As Tal notes, “The future is bright, and we have great pipelines in dealflow meetings coming out of Be’er Sheva. Be’er Sheva is also a small place – the entire hi-tech scene is based around Gav Yam Advanced Technology Park. Here are pretty much all the startups and multinational high tech companies, BGN and Tech7. By building and maintaining relationships in this area, you gain a massive advantage.”
Tal explains that in this way, you have people that can help you in every aspect related to entrepreneurs, startups, and partnerships.
Tal also notes that “Outside of the academy, there are incredible entrepreneurs in the South. There’s still a lot of work to be done, but we see huge potential. Until now, we’ve only brought one company that was built by local entrepreneurs. Together with our partners, we’re seeing huge progress, and hope to see more and more entrepreneurs joining the Labs/02 and Labs/08 family.”
This is the goal for Tal and Labs/08: to invest in and build incredible companies in Be’er Sheva with strong IP, mainly coming out of Ben Gurion University and from local talented entrepreneurs that seek mentorship and guidance while building their startup.
The technology coming out of this area spans the gamut of sectors: from IP around medical and health, to automotive, cyber of course, agritech, and sustainability – and everything in between.
Be’er Sheva is perfect for this mission. There’s BGN Technologies, the tech transfer company of the university, that does great work in building successful ventures by establishing Yazamut 360, Oazis accelerator, and Cactus VC, that aims to encourage students, faculty members and researchers to develop and hone their entrepreneurship skills; and with Tech7, an entrepreneurship and technology community for startups, aiming to unify the tech and startup scene that is rapidly growing in the Negev. Through strong partnerships with these organizations, Labs/08 gains great access to deal flow and new ventures in the Negev. The strong relationship with BGN and Tech7 guarantee many more investments in early-stage startups for Labs/08 as an active VC in the Negev.
As Tal notes, “The future is bright, and we have great pipelines in dealflow meetings coming out of Be’er Sheva. Be’er Sheva is also a small place – the entire hi-tech scene is based around Gav Yam Advanced Technology Park. Here are pretty much all the startups and multinational high tech companies, BGN and Tech7. By building and maintaining relationships in this area, you gain a massive advantage.”
Tal explains that in this way, you have people that can help you in every aspect related to entrepreneurs, startups, and partnerships.
Tal also notes that “Outside of the academy, there are incredible entrepreneurs in the South. There’s still a lot of work to be done, but we see huge potential. Until now, we’ve only brought one company that was built by local entrepreneurs. Together with our partners, we’re seeing huge progress, and hope to see more and more entrepreneurs joining the Labs/02 and Labs/08 family.”
Early stage startup companies that have come through Labs/08
Thus far, investors are able to invest in four early-stage startup companies that have come through Labs/08, and that are part of the greater Labs/02 portfolio:
Flowhow
Helps radiology providers drive revenue and streamline operations through smarter imaging services. By focusing on the digital footprint, it delivers a point of care solution that combines knowhow and AI to deliver visibility, revenue consolidation and better decision making. It thus empowers users to take better charge of integrated diagnostics, and generate more revenue and faster care, at lower costs. Starting with CTs, the company will extend the technology to cover other radiologic modalities like MRI, X-ray and ultrasound – aiming to fix the process before the image.
Dots
DOTS, or “Data Of The Soil,” disrupts precision farming with a real-time electro-optical sensor solution for continuous in-situ nitrate monitoring. The monitoring takes place at the root level, enabling precise, optimal fertilizer application. In a series of trials, Dots’ patented technology proved it can help farmers save up to 50% of fertilizer use and dramatically reduce groundwater pollution – all with the potential to improve yields.
Mirage Dynamics
Mirage offers content owners and advertisers a new way to display video ads as part of their streaming content offering. In-video advertising space creates additional inventory with higher customer engagement because the ads are not displayed independently but as part of the content the user is viewing.
NeuroBrave
Uses SaaS cloud-based infrastructure, advanced signal processing and proprietary deep learning algorithms to create a standardized software solution (NeuroSpeed OS™) for analyzing neuro-biomarkers/insights using any available hardware and wearable devices. The company was founded by two local entrepreneurs, Dror Talisman and Oleg Aryukin, who served together in an elite military intelligence unit.
Investing in early-stage startups in the South: the vision for Labs/08
Tal and Labs/08’s vision for the organization is an inspiringly simple one: to build unicorns in Be’er Sheva and Israel’s south.
As Labs/08 adds companies to its portfolio together with Labs/02, the chances for a unicorn are increased significantly. With this gaining traction, more VCs will be attracted to the area to invest in early-stage startups, which will mean even more innovation, more job opportunities, and more success stories.
At Labs/08 and Labs/02, we understand the need for a venture creation process that builds startups together with talented entrepreneurs and researchers, and leads through a unique process before the investment takes place. This is what we’re building in the Negev.
As Tal says, “It will happen – I can see it happening already. And I’m proud that Labs/08 is at the forefront of this trend, identifying tomorrow’s superstars.”
To learn more about how to invest in early-stage startups click the button below. We would love to hear from you.
As Labs/08 adds companies to its portfolio together with Labs/02, the chances for a unicorn are increased significantly. With this gaining traction, more VCs will be attracted to the area to invest in early-stage startups, which will mean even more innovation, more job opportunities, and more success stories.
At Labs/08 and Labs/02, we understand the need for a venture creation process that builds startups together with talented entrepreneurs and researchers, and leads through a unique process before the investment takes place. This is what we’re building in the Negev.
As Tal says, “It will happen – I can see it happening already. And I’m proud that Labs/08 is at the forefront of this trend, identifying tomorrow’s superstars.”
To learn more about how to invest in early-stage startups click the button below. We would love to hear from you.
