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.

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.”

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.

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Frenel Imaging

Industry

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The next generation of thermal imaging

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MirageDynamics

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Shulamit Brodsky

Finance & Controlling

Shulamit has over 15 years of experience in finance. Prior to joining Labs/02, Shulamit served in finance positions at several companies, and in a VC. Shulamit has extensive experience working with both startups and the Israeli Innovations Authority . Shulamit holds a BA in Economics from Odessa State University, Ukraine and BA in Accounting from Open University, Israel .

Ruby Chen

Venture Partner

Ruby possesses a proven track record in initiating, leading and executing deals ( >25 investments and multiple M&As) at global industry leading companies (Hyundai Motor Company, Amdocs and NICE Systems). Ruby joins Labs02 after establishing and leading the Hyundai CRADLE Israel office creating an Israeli mobility investment portfolio of 10 startups (vehicle sensors, cyber, deep tech, and energy related). Ruby is highly networked with a great reputation in the Israeli tech scene, serving as BoD member, BoD observer and strategic advisor to multiple growth companies.

Shai Michel

Steering Committee

Shay Michel is a General Partner at Merlin Ventures, where he leads the firm’s Israeli office. Shay is a serial entrepreneur who has founded 4 companies in the CDN and IT world, and for the last 5 years has been the managing partner of toDay Ventures, an Israeli seed-stage fund. In December 2020 he joined Merlin Ventures to stand up and run its efforts in Tel Aviv. Shay has worked with startups like Cybereason, Aqua Security, Luminate and Fireblocks from their pre-seed stage to help them define their products and create initial MVPs. At Merlin Ventures, Shay sources and leads deals in Israeli enterprise cybersecurity companies. Merlin Ventures then leverages parent company Merlin Cyber’s 25 year history of working with US Federal agencies and provides the resources and knowledge necessary to help accelerate portfolio companies growth into US public sector markets.

Amir Ben Levy

Associate

Amir is an associate at Labs/02. As part of his role, Amir seeks out disruptive startups, conducts due diligence on investment opportunities, and assists portfolio companies with Business Development and Investor Relations activities. Amir has a solid background in economics and business, having spent 5 years at the Ministry of Finance where he was involved in promoting significant economic reforms. Amir is a graduate of the prestigious PPE program at the Hebrew University of Jerusalem.

Eliav Schreiber

Associate

Eliav researches and evaluates business strategies, products and markets on behalf of the Labs02 Investment Team. Following an investment, Eliav works closely with portfolio companies to assist with everyday challenges and to help prepare for further fundraising. Before joining Labs02 he led research teams as a Captain in the Research & Analysis Unit of Military Intelligence, where he served for five years. Wrapping up an honors program LLB and MBA from the Hebrew University, and passionate about innovation, Web3, photography, and snowboarding.

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Company name

Dots

Industry

AgTech

Looking for

Investment, Business Opportunities

Stage

Seed

A data system with a revolutionary electro-optical technology to optimize fertilization (and irrigation) to eliminate Nitrogen environmental pollution.

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Micha Risling

Advisor, Product and Technology

Micha is a high-caliber and innovative executive and strategist with 20+ years of experience and a proven record of building, launching, and leading new organizations, geographies, products and teams for start-ups and mature companies. In his last position Micha served as the SVP of Marketing, Product and Business Development at Valens. Micha has a track record of turning people into leaders. Micha’s unique career crosses industry boundaries and includes the Automotive, mobile, CE and communications industries, with special focus on the Semiconductor industry.

Loni Snape

Advisor, Marketing

Loni is an expert at helping brands tell their story to the right audiences in a meaningful way. She is the founder of 98 Marketing, a marketing firm for startups that specializes in content marketing, social media marketing, and digital strategy. Prior to founding 98 Marketing, Loni founded a music-focused live streaming and crowdfunding app aimed at helping musicians make it big. She brought musicians with millions of followers on board using social media and influencer marketing techniques. Coming from New York, Loni prides herself on working with incredible Israeli startups and helping them give across their message to successfully target the US and other English-speaking markets.

Sandeep Varma

Advisor, M&A, Business Development

Sandeep is an accomplished strategy, M&A and business development executive with an extensive history of navigating hi-tech companies through market disruption and transformational change. With close to 20 years of cross-functional leadership experience, he has driven key strategic initiatives at Symantec, Dell, and CA Technologies to grow revenue, enhance operating margins and enter new markets to increase shareholder value. Sandeep’s strategic initiatives have translated into approximately $5B of buyside, public, private and cross-border acquisitions, divestitures, partnerships and investments in the Cybersecurity, IoT, BigData, AI/ML, DevOps and broader enterprise software markets. Sandeep holds an MBA from the Kellogg Graduate School of Management at Northwestern University and a BA in economics from Wesleyan University in Middletown, CT.

Avi Douglen

Advisor, Cyber

Avi Douglen is a leading software security authority, and has been designing and developing secure applications for over 20 years. His consulting agency, Bounce Security, supports organizations of all sizes in integrating security methodologies and products into their development processes. He spends a lot of time with startups and development teams, providing architectural guidance and training them to build secure products. Avi Douglen also leads the OWASP Israel chapter, is co-founder of the OWASP Threat Modeling project, and is a community moderator on Security.StackExchange.com.

Itche Weinreb

Advisor, Sales

Itche is a Channel and Revenue Expert and former VP Sales at Checkpoint Systems. His unique perspective comes from transforming one of the biggest cyber security companies in the world, creating new revenue streams for both hardware and software products and penetrating new markets. Itche has 25 years of experience in high-tech B2B Cyber Security and Telecom companies such as Checkpoint, Cyberbit and Comverse, with extensive experience in global sales and go-to-market strategy development. Itche has an EMBA from Ben Gurion University.

Tal Gilor

Partner

Tal evaluates and implements venture investments in startups based in Bee’r Sheva and takes an active part in them with all related to strategy, investors relation, and day-to-day operations. Prior to joining Labs/02, Tal spent 11 years working within Motorola Solutions and performed multiple roles, including SW developer, SW Manager, Product Manager, and Open Innovation Manager. In his last role, Tal managed Motorola Solutions Venture Capital in Israel. Tal holds a B.Sc in Computer Science from Ben Gurion University and MBA from Bar Ilan University.

Menachem Shefer

CTO

Menachem Shefer has over 15 years of experience in the IT industry, with global roles in companies at IBM and Samsung. He received his BSc in Physics and Computer Science from Ben Gurion University and he is an MA candidate in Philosophy of Science from Tel Aviv University. Menachem has significant experience with mentoring startup companies in their R&D process to commercialization.

Michaela Lachman Menashe

Finance & Operations

Michaela has over 25 years of experience in finance, human resources, operations, and logistics. Prior to joining Labs/02, Michaela worked at several high-tech companies, such as Operative (SintecMedia), Vyyo (Phasecom), etc. Michaela utilizes her extensive experience in order to assist startup companies with growth.

Shai Eisen

Partner

With extensive experience in the tech industry and expertise ranging from engineering through operations to business and product development, Shai Eisen joined Labs/02 as an operating partner in 2021. Shai brings a proven track record in launching and growing new and innovative products across a wide range of industries and applications. Shai holds an MBA from Columbia University and a B.Sc. in Computer Engineering from Northwestern University.

Ofer Dar

Partner & CFO

Ofer Dar is a seasoned CFO with 20+ years of experience in financial positions of technology companies. Prior to joining Labs/02, Ofer served as CFO of the JVP Jerusalem Incubator. Ofer has extensive experience working with both startups and the Israeli Innovations Authority (formerly OCS). Ofer is a Certified Accountant and holds a BA and MBA from the College of Management.

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Founders

Full Name

Full Name

IntellAct: Provides airlines, airports and ground handling teams full visibility into aircraft's turnaround services

Stav Erez

Advisor

Prior to joining Labs/02, Stav was an entrepreneur focused on building startup accelerators and helping founders build businesses from scratch. Stav has a knack for taking ideas she is passionate about and bringing them to life. She co-founded SifTech, the first entrepreneurship center and accelerator program in greater Jerusalem and also founded Jnext. In 2016 Stav joined OurCrowd as Director of Business Development. Stav is a graduate of Hebrew University’s prestigious PPE program and was featured in Forbes 30 under 30 in 2015.

Moshe Raines

Managing Partner

Moshe Raines is the Managing Partner of Labs/02. Prior to Labs/02, Moshe spent 20+ years as an entrepreneur as well as working in various Business Development and Corporate Development executive roles in Israel and the US. Moshe’s experiences cover Aerospace & Defense, Semiconductors, NAND Flash, Wireless Power, and Wireless Mobility with an emphasis on M&A and capital markets. Moshe draws on his vast experience advising companies of all sizes on capital structures, capital raising, M&A and strategic alternatives to be a value-add investor. Moshe received his M.Sc. degree from University of Bridgeport, CT.
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